You Don't Have to Pay Me a Dime
Have you ever wondered if you need to pay your real estate agent when you buy a home? If so, you’re not alone. Lots of people aren’t sure how it all works.
Here’s the short answer: When you buy a house with us as your agents, you don’t have to pay us a dime. At least not in the sense of you writing out a check to us or our company. However, we will get paid.
It’s kind of confusing, right? If you’re not paying us…then who is?
It comes from the seller.
So the question becomes: Why would we work with you, for you, and with your best interests in mind, if you aren’t paying us?
Because that’s our responsibility...our fiduciary duty. Simple as that!
It wasn’t always that way, though. It used to be that all agents were essentially working for the seller, trying to get the highest price they could for the house.
That’s changed...actually quite a while back. But the way agents get paid has not.
The seller still pays the commissions, even though the buyer’s agent is representing the buyer’s interest, not theirs.
See, the compensation we earn comes from the equity in the seller’s house.
In order to sell a house, the owner needs to have equity. In other words, they have enough money to sell the house for a certain price, pay off any existing loans and other costs (like real estate commissions), and still walk away with money in their pocket.
(Yes, they can sell even without equity, but we’re not getting into that here. Those are short sales. And, yes, even then the buyer’s agent gets paid by the seller, even though there’s no equity.)
You don’t have to pay us a dime to represent you.