What Is The Commission That The Buyers Agent Is Supposed To Be Paid
There are a dozen real estate agents that are licensed in this country. A real estate agent is a person that represents the buyers interest in a transaction that involves real estate property. The duties of a real estate agent is to find the property and negotiate the prize on behalf of the homeowner. Some people are yet to figure out on who is supposed to pay the buyers 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 payment that an agent receives from their broker after completing a deal. An agent is a person that works under a broker. Thus, the agent is supposed to get permission from the broker for them to work. It is contrary to the law for real estate agents to work independently. Thus the buyer pays the broker and then the broker pays the agent. Even though agents have a different body with the brokers that must work together. There agents that work permanently for the brokers.
The process of commission payment is a bit complex. There are several professionals that are in the real estate transaction process. This is the chain of payment that is involved. 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 real estate agent that prepares the proposal is the one that gets the commission.
There is also something that is known as the dual agency. This occurs when the same agent represents sellers and buyers. When this happens the agent gets all the pay. Some states forbid double agency. Thus, when seeking for the services of real estate agents they should ensure that they only hire the sole companies. Double agency is not reliable because they are representing both the clients thus there importance will be central.
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 money is usually shared between both the brokers. It is also possible for the seller to sell the property without involving a sellers real estate agency. When this happens the seller of the property should include that the owner is selling the property.