The Barry and Larry Vestera Real Estate Program Radio show 8:00-9:00 AM | December 3,…
In the previous article, the perceived required 3% commissions on the buyer and seller side of the transaction were described by a local real estate radio show as one of the largest real estate “scams” that affect the consumer when buying or selling a property. However, the commission-based real estate transaction has endured for decades because it provides consumers with a very distinct advantage: namely that there are rarely any out-of-pocket costs for the buyer or seller until the inspection and closing days. However, we may see different models emerge in the 2020s and beyond, so the informed consumer has the best advantage.
There are typically no out-of-pocket selling commission costs for sellers during the listing period, and the seller just gets a closing check that is reduced by the commissions involved. his article will discuss real estate agent fees and how buyer agents get paid.
How Do Buyer Agents Get Paid?
According to Kathleen Chiras, the manager of the National Buyers Agent Association, “No big changes happen in societies unless it’s demanded on the grassroots level. One of the things we do about the real estate agent fees is empowering consumers to go ahead and ask questions.”
- How do agents get paid? This is the most common question agents get. And this is the first part of understanding how to handle the conversation with the broker. Once the consumer can understand the reality of how agents get paid, then they’re in a much stronger position to ask the next questions.
- What value you have going to provide for me? As per understanding how the commission works, the consumer will then be more confident in having the agents point out what they’re willing to do for the money they’re going to make on the transaction.
- Are the fees flexible? All real estate agent fees and commissions are negotiable. But this question is important as it also may depend on how much work is needed to be done in the transaction. Also, many times if a consumer wishes to sell and then buy again in the same area, there is a very high chance that the listing agent will be negotiable on their listing commission, because they are likely to make, for example, 3% on the marketing of the home and 3% on the buy-side of a new home.
Listen to the full radio show here:
On the other hand, brokers working on commission are in a vulnerable position because they are working a lot upfront, without getting paid. Chiras shared that last year, a consumer contacted them and pretended to be a real buyer. Since she knew that commissions are charged at closing, she took advantage of it, attended tours, and viewed houses for her own entertainment. After all the work done by numerous agents specializing in luxury properties, she cut contacts with them. Because of situations like this, brokers take protective steps like asking for the consumer’s pre-qualification letter or proof of funds or economizing on their time by reviewing things over the phone or providing virtual tours. In this way, brokers can economize on their time while still serving the consumer.
“It’s all about negotiating and being reasonable between two parties that need each other. The buyer needs a good agent and a good agent needs a good buyer.” Chiras added.
In about 80% of the inquiries the Buyer Agent Search Service gets from the consumers, there is a discussion on how buyers and sellers of real estate can approach the real estate agent fees question to be empowered and educated. Chiras finds it a good thing because it shows that the consumers are seeking the top agents in her network who are willing to discuss it. That’s where the buyers and sellers themselves are slowly implementing changes to the real estate industry.
Main Services Provided by the Buyer Agents
- Negotiation – May potentially save their clients thousands of dollars. They will provide home assessments based on factual comparable information.
- Consultation – Getting details about the buyer’s wants and needs and matching that with homes that meet the client’s criteria.
- Tours – Showing properties to the clients and pointing out the positive and negative aspects of the homes. They are also familiar with neighborhoods and can provide clients with resources to access crime data, commute to work, and pricing trends in particular areas.
Finding the Best Buyer Agents
The National Buyers Agent Association has been helping consumers achieve successful and hassle-free real estate transactions by providing highly qualified agents anywhere in the United States, Costa Rica, and Canada. The agents in this network are all top-rated and serve only the best interests of the consumers. Go to this page in the Buyer Agent site to start browsing the best agents based on consumers’ wants and needs.
Consumers can easily find the right agent by filling out the online form and a list of top agents for a specific area is then sent via email. Homebuyers (or even sellers) may also call 800-383-7188, Mondays through Sundays, and talk with any of the staff or Kathleen Chiras herself.
Take advantage of the free consultation for top agents in the United States, Costa Rica, and Canada. The service is constantly adding new home-buying videos, so check out our YouTube channel today! See you there!
Check out the A+ rating the service has with the Better Business Bureau here: https://www.bbb.org/us/co/evergreen/profile/association-management/skyfor-inc-0885-90275771