I often get caught up in the big picture of Real Estate, market trends, global effects on interest, etc. and I forget the basic fundamentals. Because we assume people know them, but that is not the case, so today's blog is about fundamentals.
1. The buyer does not pay for his realtor. I know you get nothing for nothing, but in this case you do.
2 The seller negotiates a commission with his realtor and they generally offer half of that commission to the buyer's representative.
3. Realtors are commission paid, they only get paid on the satisfactory closing of an offer to purchase.
4. Almost all offices are independent, just because we often operate under a world wide banner does not mean we are working together. If you are working with a Century 21 agent and you see an open house with Century 21 and you go in and put in an offer, the agent you are working with does not get paid. Now you may wonder why a listing agent would want to give up half of their commission to someone representing the buyer:
Because - There is more work putting a satisfactory deal together than just writing an offer. Buyers need information and lots of it, schools, parks, transportation, taxes, zoning, future potential, local history, local pricing, it never ends. When an agent brings an informed buyer to the table, we are more than happy to share commissions, because nobody wins if some glitch pops up and the buyer wants out. It hurts the resale of the property and it hurts the reputation of the agents involved. It is not easy, but a good agent makes it look that way.