It is a common perception—some might say misperception—that sellers pay the commission in the real estate transaction. The real estate commission does show up on the seller's side of the HUD1 settlement statement. But think about it. The Realtor®'s commission is built into the sales price of the home, whether it be resale or new construction, and who is paying for that home? You, the purchaser.
Chances are you are not only paying for, but financing that commission. Let's say, for example, the commission is $30,000. On a 30 year, fixed rate loan, that commission is costing you, the buyer, about $60,000. For $60,000, shouldn't you get the best representation your money can buy?
It's important that you choose an experienced Realtor® who is there for you. Your Realtor® should be actively finding you potential homes, keeping you informed throughout the entire process, negotiating furiously on your behalf, and answering all of your questions with competence and speed.
Buying property is a complex and stressful task. In fact, it's often the biggest investment you will make in your lifetime. At the same time, real estate transactions have become increasingly complicated. New technology, laws, procedures and the increasing sophistication of buyers and sellers make it more important than ever that you work with a Realtor® who has a keen understanding of the real estate business.
It benefits you, as the buyer, to work exclusively with a buyer’s agent who represents you and not the seller. A buyer’s agent will actively seek out homes that fit your criteria and represent your best interests when it comes to the negotiation process. Find out more about what an agent can and cannot do for you, by law, when you are a buyer client of The Bailey Team as opposed to a customer (where the Realtor® works for the seller).