How a buyer's agent gets paid (and what it costs you)
In a typical sale, the seller covers the commission that pays both agents. Here's what that means for your budget.
The short answer
In a typical home sale, the seller pays the commission out of the sale proceeds, and that commission covers both the listing agent and the buyer's agent. So in most cases, you don't write a separate check to me or any buyer's agent.
That's why it costs you nothing to have professional representation on your side of the table, and why I've always found it strange when buyers try to save money by going it alone.
Why this matters for your budget
Because buyer representation is typically built into the seller's side of the transaction, the conversation about how it's structured can vary from one deal to the next. Different sellers and different situations handle it differently, so the honest answer is: we'll look at your specific offer and lay out exactly what it means.
The important part is that it's transparent. Before you sign anything, we'll talk through how the commission works on your deal, so there are no surprises at the closing table.
What you're actually getting
Think of it this way: you get a licensed agent who knows the local market, the neighborhoods, the inspection process, and the negotiation, for the same cost as navigating it alone. That's a pretty good deal.
And since a buyer's agent works for you, not the seller, you have someone whose job it is to make sure you're seeing the full picture of every home you consider. That protection is worth more than any commission math.
Written by Mary Kay Stevens
Realtor with Keller Williams Realty Sioux Falls, SD license #18378. People first, real estate second, relationships always. Have a question this didn’t answer?
Ask me anything