Buying or Selling a home Can be Stressful! 😵
The Experienced Greetings DMV Sales Network Agents Will Help You Find YOUR Home Or Sell Your House,
So You Have More Money, Comfort, And Achieve Your Goals Throughout The Process.
How Real Estate Agents Commission Works
Real Estate Agent Commission Structure
I’ve seen a fair share of doubts about real estate agents in over ten years in real estate. If you know little to nothing about the industry, you might not understand what a real estate agent does and why they get a part of the sale when you buy a home.
You might have thought of these:
Do I need to hire a real estate agent to buy a house?
Maybe I can save more if I don’t hire a real estate agent.
People say real estate agents are after their commission and not to help people, so it’s probably true.
You’ve opened the right blog because I’m here to explain how a real estate agent’s commission works.
Who Is Involved in a Real Estate Sale Transaction?
In a transaction, here are the key players:
The seller
The seller’s broker
An agent that works for the broker and represents the seller
The seller’s agent is in charge of listing and marketing the home for the seller and making sure they get the most money they can get for the home.
On the other hand, there’s…
A buyer
The buyer’s broker
The buyer’s agent who works for the broker and represents the buyer
The buyer’s agent represents the buyer, which encompasses helping them find a home, making a competitive and attractive offer on homes the buyers like negotiating with the sellers, facilitating inspections and making sure the buyers do their due diligence, and assisting with the closing process.
How A Real Estate Sale Transaction Works
When the seller hires a broker, an agent is assigned to them. Or if they hire an agent, they technically hire the broker as well.
When it comes time for closing, the seller pays the broker, which the seller’s agent gets a part of.
The agreement usually indicates that the seller’s broker should pay a certain percentage of the commission to the buyer’s broker, which pays a certain percentage to the agent.
The process may differ in other locations, but this is how it works for real estate sale transactions in Virginia, Washington, DC, and Maryland.
If you’re more of a visual learner, I drew a simple diagram to visualize better how the transaction works.
Watch the video above to see how everyone is connected and who pays who.
Ultimately, if you’re a buyer, you won’t be the one paying your real estate agent. Their commissions come from the sale amount.
If you have an agent as a buyer, you will be better represented during the transaction to negotiate and find all the discrepancies to ensure you’re getting the best home.
If you like these tips and need assistance buying a home in the DMV, I’ve been a licensed real estate agent and broker for over a decade.
I’ve helped hundreds of buyers find the best home, and I can help you find yours. You can reach me at (703) 346-2776 or Dan@greetingsvirginia.com.
