For the Buyer - How Realtors are Paid

When a buyer chooses me to help purchase a property, I am often asked, "how are Realtors paid?" I hope the following explanation will be helpful.

I am not paid unless a buyer chooses to, and does successfully, purchase a property. When I accomplish a buyer's goal, I am reimbursed for the time, talent expense and effort I spent in working with the buyer to find that perfect property. Sometimes, despite much time and energy, a successful purchase does not come together and, in those cases, I am not compensated for my efforts.

My compensation, when I am successful in meeting a buyer's goal, can be paid several ways. The most common scenario is that the listing broker will pay a pre-determined amount of the total Listing Commission to me, the Selling Broker. This is in exchange for securing a ready, willing and able buyer for the listed property.

If a property is not listed in a Multiple Listing Service with a statement of a selling agent's compensation, and the seller will not pay any compensation to the selling broker, then I will ask a buyer to compensate me and we will use a Buyer Broker Agreement. This is typically a percentage (2.5-3%) of the negotiated purchase price.

My services may include:

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