Do Home Buyers Pay A Commission in Newton MA?
Here are answers to the most common questions around real estate commission home buyers often ask:
1. Do Home Buyers Pay a Real Estate Commission?
The price of the home reflects the full commission which will be paid to both the buyer’s and the seller’s agent. There is rarely commission to be paid to your agent above what is already included in the price of the home.
2. Are there exceptions?
There is an exception, though. If you have a buyer agency agreement with your broker, there are rare occassions when the commission paid through the price will not cover the full commission your broker charges. For example, your contract may have a 2.5% commission agreement, but the listing agent is only cooporating at a 2% commission.
How is this resolved?
When the commission included in the price does not cover the buyer agent’s commission, One of three things happen.
a. Your agent will demand the seller pays the full 2.5% out of the sale proceeds. This will be written into the offer which you sign.
b. Your agent may forgo the .5% commission.
c. You may have to pay the balance of the commission at closing.
Please note discount commissions are rare in Newton, MA. In my experience, I never sellers often agree to pay the full commission out of their proceeds.
3. If there is a chance I will pay additional commission, why sign a buyer agency agreement?
It is a rare occassion the buyer pays real estate commission beyond the purchase price. It usually happens when the sale is through a discount broker representing the seller or a for-sale-by-owner. Your buyer’s agent has much more work to do in either of these scenarios.
Furthermore, the buyer agency agreement is designed to protect the interest of the buyer. When hiring a excellent agent, the risk of possibly paying extra commission will be far outweighed by the risks of buying a home without representation in Newton MA.
Hiring a buyer’s agent will save you money, time, and a lot of energy. Having experienced representation will give you confidence in your decisions and guidance in your search. If you have hesitations and reservations about paying a commission, review your agency contract carefully and discuss with your agent. A highly qualified buyer’s broker will be well worth the commitment.
Do you have other questions about commission and how real estate agents get paid? Contact me for a complete breakdown!