How do buyer agents get paid? This is a question we often get, but the answer is not always a simple one. The most generic answer that is true in most cases, is that they get paid out of the transaction at closing. This is usually a commission based on the final sales price of the home.
However, with this sort of system it is understandable that some good quality buyer agents may be reluctant to work on homes valued at less than $100,000.
One of our brokers says he sets his price minimum at $3,000. Then if he is able to negotiate a $100,000 property down to a better price of say, $90,000 and save his buyers $10,000, then his agreement with them is that he gets paid $3000 instead of only $2,700. He says, “The buyers have just saved thousands of dollars due to my negotiating a great price for them, so they never mind adding back in the other $300 or so.”
