Who pays the real estate agents?

Who pays the real estate agents?

So, who pays the real estate agents? Hi,
it’s Jeff Crampton with Keller Williams here in Las Vegas Nevada and today’s
question is, “Who pays the real estate agents?” “How the real estate agents get
paid?” Well, I’m gonna answer that in just a moment, but if this is the first time
that you’ve been to my channel please hit that red subscribe button, should be
right down over there, and ring the bell. Hit the little bell as well if you want
to be notified the next time that I post a new video. So, who pays the real estate
agents? Normally it’s the seller. When a listing agent takes the listing, there’s
an agreed-upon commission that typically gets split between both the buyer agents
and the listing agent. Now this isn’t always the case and the split isn’t
always 50/50, but typically the listing agent is going to have a conversation with
the seller, the seller is going to agree upon the price to list the home and in
that conversation is also going to be an agreement as to the commission that is
going to be paid to the agents, both of the agents, in order to sell the home. So,
if the seller is paying both commission’s to the listing agent and to
the buyer’s agent, is the buyer’s agent really working for the buyer? The answer
is of course they are! In fact, a buyer’s agent’s fiduciary responsibilities are
only to the buyer. Under some circumstances the listing agent may end
up representing both the seller and the buyer, and really not representing either
one of them. This is a situation that might occur when the listing agent
representing the seller, has a buyer who comes in who is not being represented by
another agent. With everybody’s written permission the listing agent can enter
into what’s called, or known as, “Dual Agency.” This means that they cannot
represent one side over the other and really are just kind of handling the
transaction for both parties. This is a very special set of circumstances and
does not happen very often. Normally the seller
has somebody that looks out for their best interests, and the buyer has another
agent that looks out for their best interests. Another circumstance where a
buyer might not be represented is new construction. When a home is built
brand-new and you go to the sales tract, when there’s an agent working at the
model homes, that agent is representing the seller. Even though they explain to
the buyer everything about the house, they show the house to them, they answer
all the buyer’s questions, they are not representing the buyer. They are only
representing the seller, who in this case, would be the home builder. That’s why
it’s always a good idea to take a buyer’s agent with you when you go and
look at new construction, just to make sure that somebody is looking out for
the buyer’s best interests. I hope you found this information of value and if
you have any more questions you can give me a call at 702 306-2773. Thanks very much for watching! Bye bye.

15 thoughts on “Who pays the real estate agents?

  1. Very informative, thanks Jeff!!

  2. Such great information about how commissions work and who pays for what when selling a house.

  3. Such a common question for many! Thanks for the explanation.

  4. Good Work Jeff!

  5. Great information! I really like the part about new construction, many buyers go into that blindly thinking that they are being represented because the listing agent is simply answering their questions. It's always a good idea for a buyer to have their own agent.

  6. I get this question all the time. Love your explanation, very detailed. πŸ˜‰

  7. Great info! Thanks for breaking it down!

  8. I Enjoyed The Video. Keep The Content Coming πŸ™‚

  9. When I bought my first house as a youngin' I didn't know. So helpful for those who've never been through it!

  10. Great info !!

  11. Thanks for clarifying!

  12. Thanks for the explanation! So many first time home buyers don’t really know they get to have a professional representing THEM without paying them themselves.

  13. Nice explanation Jeff!

  14. Nicely articulated Jeff!! Very easy to understand.

  15. A very common question! Well said, Jeff!

Leave a Reply

Your email address will not be published. Required fields are marked *