We get asked a lot about how commissions work in the real estate business, so we wanted to give you a detailed explanation today.
When a buyer is searching for a home, they are curious about who pays their agent’s commission. In most cases, a seller will pay for the gross commission of 6% for the buyer’s agent and the listing agent, which is usually split to 3% per agent.
If you are looking for a home and see a sign in the yard with an agent’s number, you should realize that agent is representing the seller of the home. If you start talking to that agent and want to make an offer, keep in mind that, even though they will be getting that full 6% commission, they don’t have your best interests at heart. Hiring a buyer’s agent will ensure that you have someone advocating for you throughout the process.
As for new construction homes, the builder pays the buyer’s agent commission as well. If you are in the market for a home remember commissions work the same way on new construction as purchasing a resale home. If you do have an agent, remember you can get representation and someone in your corner.
If you have any questions for us in the meantime about commissions or about anything else related to real estate, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.