How Do Realtors Get Paid?

On occasion my Northern Virginia real estate buyers have asked me "How do you get paid?"

First of all, it's important for your Realtor to have a written Buyers Agency Agreement. This agreement outlines the agents obligations and responsibilities to you as well as their pay. I'll tell you more about Buyer Agency in Northern Virginia real estate in another blog soon.

Here's the gist:

When a seller signs a listing agreement to sell Northern Virginia Real Estate he agrees to pay the listing agent. The listing agent then agrees to pay a portion of that to the buyers representative - an offer of cooperation. The amount paid to the buyers representative is decided upon by the listing agent and seller.

When a property is listed in the MLS it must offer some sort of compensation to the buyers representative or agent. When you, the buyer make an offer to purchase the home the contract says that seller instructs the settlement company to pay the agents. The commission is then paid at settlement out of the sellers proceeds in most cases. There are always a few exceptions to that, but they are rare.

The buyer does indirectly pay for the commission. You pay for it as part of the sales price of the home and the seller takes a reduction from their proceeds.

So, since you are paying it's important that you make sure you have the right agent! Call me today to set up an interview!