When you are working with a realtor, there may be a lot of questions that arise because they handle so many different aspects of your housing needs, especially if this is a situation where you are a first time home buyer or seller. There are a lot of factors that must be considered when paying a realtor to make sure all of their services are being accounted for. One of the questions that many people have is how does your realtor get paid in your real estate transaction? While many people working in different professions may charge their clients at hourly rates for their services, this is actually not the case for real estate agents.
In most cases, realtors in a transaction get paid through the commission agreement agreed to between the seller and the listing agent. Basically, when you sell a property you agree to pay a commission to the realtor who is going to market your property and find you a buyer. The realtor commission itself could be split between the selling agent, the person who has actually found the purchaser and the listing agent who is actually selling the home.
In situations where you are the one selling your home with the help of a real estate agent, the commission payment comes from a percentage of the amount that the home was sold for. Therefore, if you are working with a real estate agent to purchase a home, the commission is included in the price of the home that they purchase, so the buyers are essentially the ones paying the commission. There are many components that must be accounted for when buying or selling a home, which is why the majority of people opt to use the services of a real estate agent.
Juan C. Velasco, Esq. is a trusted attorney who has been serving the New Jersey area for over 25 years. If you are in need of experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.