If I have an Agent, how do they get paid?
September 23, 2019
In the real estate arena today, it is advisable to have a Realtor who represents your best interests when purchasing a home. There are multiple ways that your agent can be financially rewarded for their work in regards to representing you in a transaction when buying a home. Often times, the seller has negotiated a fee that the listing agent shares with a "cooperating broker" (Your agent if you are the buyer). There are buyer agreements in many states that are a contractual agreement between you as the buyer and the agent (Realtor) that you wish to represent you in a real estate transaction. Sometimes, your agent can be compensated by a combination of the two above. Realtors are independent contractors and while some states allow them to be on "payroll", more often than not, they are independent contractors and work on a commission basis only. That is why you see either a "flat fee" or a percentage of the sales price as the compensation amount for your Realtor.