( $500), or a percentage of the sale of the home the buyer purchases. These fees are discussed with the buyer before they embark on their search for a home and a buyers agreement should be signed.
It is in the buyers best interest to discuss buyer agent fees and expected services with the buyer agent. Do you want the buyer agent to contact FSBOâ€™s and other unlisted properties? It is wrong for a buyer agent to select properties to be shown based upon the offer of compensation as represented in the MLS, and allow a buyer to believe they are being shown all properties that meet the buyer specifications.
A buyer agent or the broker for which they work might determine his/her minimum fee for buyer representation. If you, as buyer, execute an agreement to that effect, your buyer agent will then show you all properties in the MLS and FSBO properties. Once you locate a property for purchase, the seller offered compensation would first pay the buyer agent. If there were no seller offered compensation, or it were less than the agreed upon minimum, the fee could be built into the offer made and still paid at closing from the seller proceeds. You can also pay your buyers agent by making payment to the buyer brokerage company directly.
If you decline to execute a buyer agent agreement, the buyer agent should show you all properties in MLS that meet your criteria, unless they clearly communicate their minimum fee structure and provide you full disclosure that they will only be showing you properties within that range. A buyer agent cannot be forced to work for low compensation, so a buyer agent does have the right to decline showing you properties beneath that threshold........but you, as buyer, must be informed.
There are buyer agents who will favor the property listings that offer stronger compensation, so it is in your best interest as a buyer to have a buyer agency agreement. While a Realtor should not favor listings because they have a higher compensation, the buyer agent agreement you execute substantially eliminates that possibility. The same agreement also outlines the terms and expectations of service, which is to your benefit.
The value that the right buyer agent brings to the table may protect you and save you thousands of dollars. The results of that contract on the same property may still be more financially advantageous than if you had used a different agent who was not as skilled or knowledgeable.
Good luck to you in your home buying adventure! There are so many exciting times around the corner...
Please do find a reputable buyer's agent - someone a friend, colleague, or family member can wholeheartedly endorse. Don't stop there though. Make sure you interview the agent and have a good chat. Make sure you two can communicate freely and there is a definite feeling of trust - both ways!
Typically the seller has a contract with the listing agent that will compensate the buyer's agent a percentage of the sales commission at the closing of the deal.
A discussion on actual overall fees should be incorporated into your interviews with potential buyer's agent - right off the bat. Clear the air - get your buyer's agreement contract clarified and any additional fee's that may be charged will be written out. In otherwords, no surprises.
Much luck to you & don't forget to enjoy the process!
When a seller lists with an agent, he negotiates with that agent a total commission that will be paid from the seller's proceeds at the closing of the sale.
During the signing of the listing agreement, the listing agent and the seller also agree how much of that commission will be split with the buyer's agent. It is typically 50% of the total commission, but some sellers like to offer a special incentive to buyer's agents and will offer additional commission to be allotted to the buyer's agent.
The buyer rarely pays his agent directly, unless it is a FSBO home and the owner does not wish to compensate the buyer's agent. At that time the buyer may wish to offer his agent compensation at closing for their services, but it is not required.