Exactly how does the buyer's agent get paid?

Question

Buying a home, pretty much know which one I want.
Just need someone to walk me thru the process.

Do they really split $$ with the seller's agent?
If so, how does it work? They just hand over the money to him/her?

Answer 1

What area are you looking in? Also the norm is that the Sellers pay commission for the 'Selling agent/Buyers agent'. If your agent is aggressive enough he/she will ensure they get paid half of what the'Listing agent' is getting paid... example lets say the Mls says that the selling agent will receive 3% commission on the sale of the home... then if nothing changes and then escrow amends that then the selling agent gets paid that 3%. Which usually means the seller is paying 6% to whomever is the listing agent. Usually the 'selling agent' gets paid at the close of escrow. Let me know if I can help you negotiate if your in the state of California ... If not I can recommend someone professional in your local city! :)

Answer 2

When the seller employs an agent to sell their home, the seller negotiates with the agent on the fee (commission). The agent is negotiating for the overall commission and then can split the commission however way the agent wants - but with full disclosure to the seller.
Example: Seller negotiates a 6% listing with agent. Agent lists the property and in the MLS where it shows buyer agent commission it lists 3%. Thus the agent is splitting it down the middle and the MLS listing is the "offering" of pay from seller's agent to the buyer's agent. This commission then comes out of the seller's portion of closing costs when all is said and done.
Example 2: Seller negotiates a 4% listing with agent. Agent offers 3% in MLS listing to buyer's agent. Thus only keeping 1% for self. (this happens in circumstances where the seller's agent may be making a deal in order to secure the seller on other/multiple transactions).

In these cases, the MLS listing is the offer to the buyer's agent so the buyer's agent knows what to expect in regards to payment. There can be situations, however, that the seller requires a specific dollar amount to be netted out of the sale. Then whatever is over and above that dollar figure is the commission to the seller's agent...and the seller's agent still determines the amount of commission to the buyer's agent.

Answer 3

The realstate company puts your downpayment in trust for you in their company and home inpectsion and the lawyer and the bulk then the realtor gets paid