Most people have heard all the benefits of using a Realtor (if not read here), but a first time home buyer may be wondering what/how a Realtor gets paid!
Imagine this, Seller Sam wants to sell his home so he talks to Realtor Brandon. Realtor Brandon goes through the paperwork, takes photos, and lists the home for sale. Realtor Joe is working with Buyer Betty to help her buy a home. Buyer Betty is ready to buy Seller Sam’s home for $100 (it’s very small). They agree and move forward. At the closing, Buyer Betty pays Seller Sam $100. Seller Sam then pays Realtor Brandon $3, and Realtor Joe $3.
And that’s how it works! With a home listed by a real estate agent, the seller agrees to allocate funds from the sale of their home to pay the commission for both the seller’s agent and the buyer’s agent.
Yes, you read that correctly. As a home buyer you don’t pay any Realtor commissions!