Will I Have to Pay a REALTORS® Fee?

Everyone deserves to be paid for services they render to others, and real estate professionals are no different.

For the most part, real estate professionals are compensated by commission, based on a home’s selling price. Commission rates are not standardized, but vary, as does how the sales commission will be divided between the real estate agents on the selling and buying side of the transaction.

There is consistency, however, in how commissions are paid. When a seller signs a listing agreement, their contract is with a brokerage firm. All fees must pass through that brokerage firm. Typically, the seller’s representative—and your buyer’s rep—will be paid by the listing broker after the transaction closes.

There are however, occasions where you may contract with your buyers representative to pay a fee if you decide to purchase a for sale by owner home. Discuss with your REALTOR® provisions for compensation should you decide to buy a home that is not listed for sale through a real estate agent.