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Steps for Buying a Home
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How Agents are Paid
When a seller signs a listing agreement with a broker, the amount of compensation is stated in the agreement. It can be a percentage of the sale price, or a fixed fee. In accordance with the Federal Sherman Anti-Trust Act, there are no “average”, “normal” or “standard” commission rates. Each brokerage firm has the right to decide what they will charge their clients. The amount paid to the agent actually participating in the transaction is determined by his or her contract with the broker.

Why Brokers Share InformationThe listing broker then typically offers the property through the Multiple Listing Service (MLS) system, stating the amount of compensation that will be paid to an agent bringing a ready, willing and able buyer into the transaction. The MLS is a privately run database that allows real estate brokers representing sellers under a listing contract to share information about properties with real estate brokers who may represent potential buyers or wish to cooperate with a seller's broker in finding a buyer for the property. The MLS typically restricts membership and access to real estate brokers (and their agents) who are appropriately licensed by the state in which they practice their profession.

How Your Buyer Agent is PaidA buyer agent agreement states the amount that your buyer agent is to be paid if you purchase a property. The amount offered by the seller, through the listing broker, is usually adequate to cover this amount. If it is not, you may owe additional money to your agent.

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