What is the buyer agent commission? How does that work?


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The buyer’s broker commission or sometimes called buyer agent commission is the amount of money a Seller agrees to pay the broker representing the buyer as an inducement for other brokers to show and sell your home (remember that brokers earn the money and pay their agents. Agents do not get paid directly, hence the confusion between broker and agent) typically, the commission is defined as a percentage of the selling price and is advertised in the agents information section of the listing in MLS. It is paid at closing and any restrictions or additional incentives are listed in the private remarks section of the listing agreement.

No matter which broker lists your home over 90% of the time another broker will sell your home. The typical fee in our Texas market is 3%. There is not a set commission rate paid to the Buyers Broker. With all commissions the amount paid is negotiable and is negotiated when you enter a listing agreement. Unlike the selling price of the property, all fees and commissions are negotiated at the time of entering a listing agreement. The amount of the buyer’s broker commission is part of the selling strategy determined between the seller and the listing agent.

Sometimes we will see a 4% buyers commissions offered and other bonus terms to induce buyer agents. Agents will show your home if you offer a reasonable commission. Agents may try harder to make sure your home is shown if additional compensation is offered. The buyer’s broker commission is collected by the title company at closing and paid to the buyer’s broker and all or part of the amount is paid to the agent by their broker.


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