Buyer FAQ What Does A Buyer Pay Their Buyers Agent?
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"What does a buyer pay their buyer Agent" is a question that I continue to get and I'm always a little surprised when I do. It serves to remind me that there are always new home buyers entering the market place that are unaware of the process of buying a home and how exactly "Agency" works.
What does the home buyer pay his/her agent?
The short answer is "Nothing"! The buyer does not pay the buyer agent anything, it is the
seller who pays both Realtors or real estate agents based on what was agreed on in the Listing Agreement between the seller and the sellers representative or real estate agent. At least that is how it works in Alabama and most other states. The buyer, however, does have the option of paying their representative the commission or brokerage fee due. The buyer also can for a fee "retain" their agent/representative, fees all of which are completely negotiable.
What out of pocket expenses does the home buyer have before closing?
What the buyer will have to pay for before closing are the various home inspections they elect to have done? The following are typical, but there are others: home inspection, radon test, termite inspection, mold or wood destroying fungus. Occasionally the termite and mold inspections can be paid at closing and depending on the language of the contract may be paid by the seller or buyer. The buyer will also have to pay for the appraisal before closing, but could possibly be credited and paid for also at the closing by the seller. Depending on the type of sale: distressed, foreclosure, HUD or short sale the buyer may be required to have utilities turned on and paid for in order to do inspections and appraisal. I think it's fair to mention that the buyer will also be required to deposit "earnest money" (with the buyer brokerage) which is also know as good faith money. This money is credited back to the buyer at the closing table
Again, answering the question of what a home buyer pays their real estate agent the answer is nothing unless they elect to pay the brokerage fee.
Recently I've been working with several new home buyers unfamiliar with buying a home and the process so I will follow up this post with a series of posts taking the home buying process from beginning to end.
Until then why not do a little new home searching in Madison and Huntsville Alabama
If you need a knowledgeable real estate professional in Madison or Huntsville Alabama area, why don't you let me Google that for you! I also know outstanding agents in all states and Canada should you need help relocating to a new area.
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