Essential Things To Know Regarding Real Estate Agent Commission Payment Terms
There are many real estate agents that are working in the country. A real estate agent is a person that helps people when they are buying real estate property. The duties of a real estate agent is to find the property and negotiate the prize on behalf of the homeowner. There has been a confusion on the person that is supposed to pay the buyers real estate agent. To get an understanding on who should pay the buyers agent ; people should understand the terms and payment of real estate commissions.
Commission is the money that the agent receives from the sale or purchase from the total prize of the property as a result of the services rendered. A broker is the person that employs the agent. Hence, the agent must have permission from the broker in order to work. IIt is illegal for real estate agents to work all by themselves without liaising with the brokers. Thus the buyer pays the broker and then the broker pays the agent. Although, agents are independent people that have licenses they must work under brokers. Some agent are employees that work permanently for the brokers.
The process of payment is very long. There are several professionals that are in the real estate transaction process. There is a long process that is followed during the payment of the commission. The the seller of the property pays sellers broker. Then the sellers broker pays the sellers agent. The third one is that the sellers broker pays the buyers agent broker. Then the buyers broker pays the buyers agent. If at all two agents are involved there is need to find the procuring cause. The agent that writes the offer is the one that gets the commission.
There is also another one that is known as the double agency. This occurs when the same agent represents sellers and buyers. When this happens the agent gets all the pay. Some states are against the dual agency. Therefore before hiring the services of an agent, there is a need to ensure that the companies are working independently. Since in dual agency, the same agents represent both parties it is hard to negotiate correctly.
There are many things that affect the commission that one gets. The commission can be an average of 4% of the price of the property. The cash is then divided between the seller’s brokerage and the buyer’s brokerage. It is also possible for the seller to sell the property without involving a sellers real estate agency. In this case the seller should mark the property for sale by owner buyers agent commission buyers commission agent.
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