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April
2
2
The TRUTH about How Real Estate Agents Get Paid
Most home buyers enlist the services of a real estate professional when buying a house. It only makes sense – agents have experience in dealing with multiple issues surrounding the process, and they usually have the homes listed for sale as well as hold the most knowledge on the homes currently listed in their respective markets. But the question often comes up; "How do real estate agents get paid and who is responsible for that payment?" First, we need to state that every real estate agent must work for a broker. The broker is the one licensed with the state to do business. Whether it is a franchised broker, a local company or privately owned, like Ruhl&Ruhl Realtors it is the broker that is licensed to buy and sell the homes in that particular state. The broker is also the one to determine how its agents will be compensated. Real estate agents are usually compensated on what is called a "commission split," meaning that the broker will receive a percentage of the commission paid to the real estate agent from the closing process. We also want to state the difference between agents, if you are a buyer you will be working with a "selling agent" if you are the seller your agent is titled "listing agent", here is the reason why this is the most important thing to remember: In almost every case, the entire real estate commission is being paid by the seller of the home, therefore the commission will be given to the "listing agent" to split with their brokerage and a portion will then be given to the "selling agent" to be split with their brokerage. Please remember that a real estate transaction can be negotiated a number of ways so this case may not always be true. The bottom line is in this sometimes unpredictable real estate market, it is best to have someone on your side to represent you and make sure that all your needs, whether you are a buyer or seller are met. Do you want to get into the best industry? Contact us or visit www.ruhlhomes.com/careers.aspx
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