Who Pays the Real Estate Agent?

Who Pays the Real Estate Agent?

I wanted to share and discuss with you a subject and question that I come across quite often, “Who Pays the Real Estate Agent?” Many people don’t know how real estate agents get paid, and this is because it’s situational and negotiable. Usually the seller/builder pays the commissions to both the selling agent (buyer) and the listing agent (seller). There are a variety of contracts and agreements and situations that the buyer, seller, and realtor can come across that will determine who is responsible for the commission, and in what ways. In Lee County it is customary that the seller or builder pays the commission.

When working with a buyer, I get paid by the seller or builder – there is no cost to the buyer to use my vast knowledge and services.

However, this isn’t always the case in all house buying situations. All fees paid to a real estate agent pass through a broker, and only the broker can pay a real estate commission to a Sales Associate. How much a buyer or seller agent gets paid, commission-wise, is dependent on the agreement with their broker, as well as the contract made with the seller of the home.

It’s often argued that the buyer always pays the commission because it is typically part of the sales price; others argue the seller is paying it because it’s coming out of the homes equity. Either way, the commission fee comes out of the cost of the home, it’s not tacked on in addition to the sale price. Typically, if the buyers don’t have an agent, the seller’s agent receives the entire commission.

I am an agent that works under RE/MAX Realty Team, a brokerage, that will help represent buyers and sellers by helping them facilitate the purchase or sale of a home.

This topic can be confusing; there are so many different scenarios and it is often not understood by many people. In fact, real estate commissions may be one of the least understood aspects to buying or sell a home for a person.

If you’re looking to buy a home in Southwest Florida, I can go through everything with you regarding the commission and the process of buying or selling a home here in Southwest Florida. Contact me here or call me at 239-214-1039 if you’re looking to purchase or sell a home in SWFL or want to know more about this commission topic or the SWFL area.