What? Buyer Agents work for FREE?
This question comes up quite often when working with buyers, especially if they are from out of town or from out of state. Now before we go any further, let me say this:
Every state has their own rules and regulations regarding buyer agents and listing agents.
Every region within every state might have its own customs regarding many things pertaining real estate.
This is how it works in Highlands County, Florida:
Generally, buyers do not pay their buyer agent! The buyer agent gets a percentage of the commission the listing agent earns from the seller.
Let's say you are from up north and are looking to buy a retirement home in Highlands County Florida. You call us up and we discuss your wants and needs. After we have identified several properties that are of interest to you, we go out and take a look at them. As I have said in an earlier post, we are not limited to our own listings or office listings. We will show you any home for sale through any agent and any office. Now, once we have found your dream home and have written up an offer that was accepted by the seller, we move towards the closing table. You will not have to pay us a dime! Our services are completely FREE to you, the buyer!
The listing agent offers a split of their commission to acooperating broker once they enter their listing into the MLS. This is how the buyer agent gets paid. It will show up on the top portion of page 1 on the final closing statement and it will be paid out of the seller's proceeds.
Now it makes even more sense to call us to help you find that dreamhome in Highlands County - it doesn't cost you dime to work with a pro!
Yep, all my buyers are using me for free, and that's a great deal.
This is one area where the NAR has failed to get the information out to the public. As an exclusive buyer's agent, it's on my web sites, yet, buyers often still believe that they have to pay a buyer's agent.
And the fight goes on.
Dave and Lenn, there is so much more that buyers and/or sellers do not know about how real estate works: If I had a dollar for every buyer that believes they can only purchase a home through the listing agent and therefore work with 13 agents at the same time - I could retire!!!
I agree with Lenn and NAR needs to educate the public to this fact. Instead we get intrest rates are low call your reaaaltooor.
Great post! So many people neglect to understand this fact!