How Do I Get Paid?

This is a typical initial question people ask me. "As my Buyer Agent, how do you get paid?"

Basically, as a Buyer Agent in NJ, I get paid the same way traditional real estate agents get paid.

When a home buyer purchases a property with my help in NJ, the real estate commission:

• is due and paid at the closing on home,

• is always included in the asking price for a listed property,

• averages between 5% and 6%. For example, when a Buyer purchases a condo for $400,000, 5% (or $20,000) of the purchase price is the total real estate commission,

• is typically paid 50% to the real estate office that listed the property and who works for the Seller (the Seller Agent) and 50% to the real estate office that brings and represents the Buyer (in my case, I am acting as my Buyer's Exclusive Buyer Agent).

• is a negotiable percentage between the Seller and their Agent at the time the Selling Agent lists the Seller's property for sale (and, as I said it typically ranges between 5% - 6%). However, it can be more, or less, or even include a bonus.

• and, is only 3% for a property I help a home buyer buy that is a "For Sale By Owner" property (a property which is not listed by any real estate agency and is sold directly by the Seller or Builder without the aid of a Seller Agent).

What I find most people do not understand is that they are going to pay the same total real estate commission using an agent who does not even work for them as they will pay if I help them purchase the same property. However, there is a big difference because as their Buyer's Agent I work exclusively for my Home Buyer's best interests. I never work for the Seller, a Builder or a Developer against my client.

Moreover, by negotiating the best price, terms and conditions for my client, as well as helping them find favorable financing rates, terms, and closing fees, then they may actually end up pay less working with me and yet getting full representation.