Who is responsible for paying the Buyers Agent Commission when buying real estate? Is it paid by the Buyer or the Listing Broker?

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What is a Buyer's Agent Commission?

A Buyers Agent Commission is the money that is paid to the Buyers Agent representing the Buyer on the purchase of Real Estate.


Who pays Real Estate Commission?

Traditionally in Real Estate, the commissions that are paid to both the buyer's agent and listing agent are negotiated by the Listing Broker in the Residential Listing Agreement. That means that the Listing Agent/Seller are responsible for pay the Buyers Agent Commission.

There are cases when the Seller or Listing Broker doesn't offer a Buyer side commission like in For Sale By Owners. In this case, your Buyers Agent may ask that the Buyer pay the compensation to them for representation. This is NOT something that we see very often but there are definitely cases where it comes up.

What is the buyers agent commission percentage?

There is no set commission for buyers agents or listings agents in the Real Estate Industry but traditionally speaking commissions range from 2.5%-3% in most markets. Keep in mind that out of that commission there is typically a commission split with the Company and then the agent needs to pay taxes, expenses, etc....... The REALTOR isn't walking away with the full commission in most cases.

If you have any questions about buying a home or selling a home, please contact me directly as I'd love the opportunity to guide you in the right direction.

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