Question:
We are starting to look for a home but are not sure about using an agent. How much would we have to pay them?
Answer:
Great question! The answer most of the time is…
Zero!
Of course, real estate agents don’t work for free. In practice, the seller almost always pays both agents.
There can be exceptions. Many agents work using a “Buyer-Broker Agreement,” which says that if you buy a home and the seller doesn’t pay the fee, you will pay it.
Why would you ever agree to that?
For a few reasons:
- It allows your agent to show you homes that are not on the market and listed for sale.
- By committing to your agent, they will devote more time to helping you. Agents often spend hours advising clients and showing them homes, only to have them buy with another agent. If your agent knows they’ll be paid if you buy a home, they’ll work harder for you.
- Many very good agents will only work using such an agreement.
- If your agent is working hard for you, shouldn’t they be paid for their time and service? You can always offer the seller less to reflect that.
- It’s extremely rare that this would ever happen anyway.
One downside is that it will lock you in with that agent for a certain time period, often 90–180 days. So be sure you’ve found a great agent.
Should you sign a buyer-broker agreement?
That’s your call.
By the way, we offer our clients the option to work with us under a buyer-broker agreement. But ours comes with a number of bonuses and benefits. If you’d like to know more, call me at 858-457-KENT.
