Who pays the buyers agent?

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Real Estate

So who pays the buyer agent?

 

 

There are two ways the buyers agent can be paid:

1. The less common way is that the buyers pay their agent out of pocket. This is the most straight forward way, though it's not what's typically done.

2. The most common version is that the buyer's agent's fees are rolled into the sale price, and then the seller's pay the buyer's agent. This was a practice that was adopted a few decades ago to allow first time home buyers, as well as buyer's who weren't cash heavy, to have proper representation. When a listing agent and seller determine a sale price, it's done so with the assumption that the buyers are going to have a buyer's agent. In my market that amount is usually 3%.

In addition, the 3% buyers agent commission being rolled into the sale price is so commonly practiced that when you're looking at comps to determine your own home's sale price, it's safe to assume that almost every home sale that took place was done so with the buyers agent commission rolled into it.

Email: somersestates@gmail.com or adam@dimora.com
Phone: 248-735-7297

Adam Somers is a Metro Detroit and Ann Arbor Real Estate Agent who specializes in Plymouth, Northville, Novi, Canton, South Lyon, Brighton, Milford, Livonia, and Farmington. Helping first time buyers, move up buyers, and downsizing buyers find their next home, as well as homeowners who are selling get the best price during their home sale.