Who Pays The Realtor Commission

VA Loans and Realtor Commission: Does The Borrower Pay? A reader asks, "Can seller concessions cover a part of realtor’s commission if it states buyer to pay it in contract?" VA loan rules address this issue in a specific way, but not the way the reader who contacted us with this question might expect.

It’s a common myth that, as a buyer, you don’t pay your real estate agent because the seller pays all commissions. However, that’s not really the case. . . Let’s take a look at an example on how real estate commissions work. Bob is buying a $400,000 home that Susan is selling.

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 · The standard 6% commission is paid by the seller to the real estate broker. Depending on how the home is sold, the brokerage often splits the fee between itself, the seller’s agent, and the buyer’s agent. Occasionally, this fee is even split with yet another agent on the seller’s side, if they had additional assistance with the listing.

Normal protocol in California is the seller’s hired broker agrees to pay the buyer’s hired broker a split of the commission that the seller has agreed to pay the listing broker per their listing agreement once they enter the property in the MLS (Multiple Listing Service).

No realtors and listings are involved when homeowners contact roberts and his team directly. No third party is engaged throughout the process. Homeowners spend no money to facilitate the sale. There.

If a buyer is working with a Realtor, and wants to look at a property listed by the owner, the Realtor only receives payment if the buyer or seller agrees to pay a commission or fee. Some buyers enter into a buyer-broker agreement with the Realtor, where they agree to pay the agent a commission.

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Brokers and Real Estate Agents. While some REALTORS are also brokers or associate brokers -positions that require extra training and licensing,-commission payments go to the broker who manages the real estate brokerage where the REALTOR works. The commission is then split between the broker and the agent according to their agreement.

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