When someone hires a realtor to sell their home, they agree to pay the representing brokerage firm an agreed percentage (or dollar amount) of the purchase price as a commission or fee for services. This realtor (broker) is called the listing agent. If another broker sells that home the listing broker agrees to share the commission with them. This broker is called a selling agent. Let’s cover what a selling broker does for you: it’s most important to know is that they have no fiduciary obligations to the seller (meaning they just work for buyer). As a (residential) buyer you typically don’t pay for our professional services, they are ultimately paid by the seller out of their proceeds of sale.
I don’t know of any other licensed professional you could hire that will work for you and never charges you a dime. I write these articles because when you know more about the ins and outs of real estate it allows you to make your money go further. With knowledge comes power, the power to get the most out of your money.
A good realtor’s knowledge, experience and wisdom should help you get the best possible price and terms in all aspects of your real estate journey. But, you need to keep in mind this is not always the case… Just because someone claims to be a professional doesn’t mean they will help you with your goals. Take Psychics for example, I’ve seen the signs for “professional physic”. If they were really good at their job don’t you think at least once in your life you would have seen a headline that said “Psychic Wins Lottery”. By the way, if you are waiting to hit the lottery before you buy a home I’ve done the calculation and your chances of winning the lottery are nearly identical whether you play or not.
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