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What Is The Commission That The Buyers Agent Is Supposed To Be Paid
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 responsibilities of real estate agents is to locate the property and bargain the cost for the buyer. Some people are yet to figure out on who is supposed to pay the buyers agent. Therefore there is need to understand the real agent buyers commission terms and rights.
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. An a broker usually employs real estate agent. 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. As a result, the real estate agent is usually paid by the broker and not from the buyer directly. Although, agents are independent people that have licenses they must work under brokers. Some agent are employees that work permanently for the brokers.
The channel of payment is usually long. The reason is because there are many people that are involved in the process of purchasing real estate property. There is a procedure that is required in the procurement process. One is that the seller of the property pays the sellers broker. In return the sellers agent is aid by the sellers broker. The third one is that the sellers broker pays the buyers agent broker. And finally the buyers broker in return pays the 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 something that is known as the dual agency. This happens when the same agent represents both the buyer and the seller of the property. In this case, the agent receives all the pay. Some states do not allow dual agency. Thus, when seeking for the services of real estate agents they should ensure that they only hire the sole companies. Since in dual agency, the same agents represent both parties it is hard to negotiate correctly.
The amount of commission that the buyer’s agent receives is determined by various factors. 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. There are also instances that the sellers decide to sell their property without involving the services of a real estate agent. When this happens the seller of the property should include that the owner is selling the property.