One of the questions that many first time home buyers have is how their real estate agent gets paid. They are concerned that working with an agent will cost them money out of pocket in order to buy a home.
So let’s look at how your REALTOR® gets paid.
Typically, buyer agents are compensated by the listing brokerage at closing. Is it possible to pay your agent yourself if there is no compensation offered by the seller (example: For Sale by Owner won’t pay a commission)? Absolutely. But it’s not that common in the New Orleans real estate market. And, although the seller is paying the listing brokerage, your agent works for you.
When you list your home for sale, part of the agreement is the amount of compensation you are willing to pay your agent to handle the marketing, negotiations and closing. You don’t pay any more than is agreed upon and it’s up to your agent to offer to split commissions with any agent that brings a buyer for your property.
What if my agent is the listing agent?
We’ve talked before about dual agency and why we don’t recommend it, BUT, if your buyer’s agent is also the listing agent, commissions are still paid by the seller.
What’s important to remember about agent pay is that it is just as much contingency pay as it is commission.
Your agent takes on the task of either finding you a home to purchase or marketing your home for sale without any upfront cost from you. They don’t get paid until the closing.
That’s why loyalty is so important to us. We are loyal to you and diligent in working towards what you want to accomplish…without any promise of payment until the end.