In every home buying transaction, there are at least 2 agents involved such as buyer and the seller. These 2 real estate agents are people that most home buyers hired when they want to buy a house. These people can help them in the home buying process to make things easier. These real estate agents are working in the real estate broker. The agent’s work goes between the seller and the buyer. These people cannot work independently and does not also get their payments directly.
Before they are hired to work, they have an agreement regarding the payment that they receive. The common practice of getting their paid is through commission splitting that came from the payment of the buyer after the transaction is done. The commission that the real estate agents received is from the percentage of the total price of the home sales. The percentage usually varies from eight percent or less depending on the agreed condition with the broker. However, if you are a new agent, you can only receive a lower percentage compared to the veteran agent.
- How does a buyer’s agent paid?
Buyer’s agent is a working individual that looks for homes ready for sale. The practice of payment here is that the buyer’s agent will have to share his/her commission along with a broker that represents the buyer itself. However, the splitting of the payment is not equal and there are no rules for the split payment. This can be arranged by the broker companies. If another agent came from the similar brokerage that represents the buyer, the one who get a full commission is the brokerage or the financial institution. The commission that this agent might get depends upon the broker’s agreement.
- How does the seller's agent get paid?
The seller’s agent can be the agent that is being kept by the seller. Another name for the seller’s agent is the listing agent. This individual requires the seller to provide the broker an authority to sell the home on behalf of the owner for several months. In this case the full commission will be received by the listing broker if the deed of sale is being signed. The work of this agent is to advertise the property, home buying preparation and promotion of the sales.
- Why are these agents important in house buying procedure?
These people are very important to home buyers because they have the full knowledge when it comes to home buying process. They render their help to buyers in order to avoid future problems that may arise. Home buyers who do not hire an agent during the home buying transactions, usually ends up with problems. When the problems arise, they hire an attorney for legal advice regarding the transaction. Paying for an attorney's fee is expensive. However, you can lessen the expenses when you have an agent that can help you in home buying transaction. These agents have enough knowledge about the trends on the market and in the neighborhood. Even though they earned commission from the buyer, but their work is very hard and takes an extra time.
Therefore, do not underestimate the works of the real estate agents since without them; home buying process is a bit complicated.