Buying or Selling a Home

Real Estate Brokers

What is the fee relationship with a buyer's agent?

Most buyers prefer to have their agent's fee paid by the seller to avoid additional costs. But, remember, this preference may commit the buyer to the traditional arrangement in which the listing and showing agents both work for the seller. Any buyer who is uncomfortable with this situation may enlist the help of a buyer's agent who will represent only the buyer.

A buyer's agent may require a nonrefundable fee, which will vary with the length of the home search and the extent of the services provided. If you choose this option, you will want to have a specific contract which, as with all written contracts, should be reviewed and approved by your lawyer. The contract should specify the services to be provided and the fees you will pay. If possible, avoid having the fee connected to the purchase price of the home. You do not want to provide an incentive for your agent to encourage a more expensive sale than you want. It may be possible, however, to specify in your purchase offer to the seller that your agent's fee will be paid by the seller at closing.

To find a buyer's broker, check the yellow pages of your telephone book or call the local real estate association for referrals.

>>What is the real estate agent's role in a home sale?
>>What is the role of the seller's agents?
>>What is the listing agreement?
>>What fee will I pay on the sale of my home?
>>What other terms in the listing agreement are negotiable?
>>What legal protection do I have after signing a listing agreement?
>>Is the real estate agent liable if a potential buyer steals something from my home?
>>What can I do if my real estate firm doesn't seem to be working very hard to sell my home?
>>What is the fee relationship with a buyer's agent?


Practical Law Home | Buying or Selling a Home | Basics of Buying a Home
Basics of Selling a Home | Why Real Estate Is Covered By Special Laws | *Real Estate Brokers*
The Purchase Contract | Financing a Home Purchase | The Closing | The Fair Housing Act
Where to Get More Information

Advertisement