Who Pays the Real Estate Agent’s Fee?

Whether you are buying a property or selling a home, seeking help from real estate agents and realtors is never a bad idea. They are professionals who are well aware of the industry and they help you make a decision that is in your best interest. However, when it comes to agent’s fee or commission, there is a lot of confusion as to who is responsible for the payment.

The confusion arises from the fact that in many cases, both the parties are using an agent. Secondly, there is no fixed commission rate. The commission rate for both the buyer’s and seller’s agent is negotiable and will be described in the sale contract.

Now coming to who pays that commission. Once again, there is no rule as to who must pay the commission, but it is generally paid by the seller. Sellers usually factor in that amount into the asking price. There are, however, many cases where both parties agree to split the amount.

In common practice, buyers do not need to worry about any commission. It is the seller’s agent who gets the amount out of the sales proceeds. The amount is then split and shared with the buyer’s agent as per the agreed terms.

Since there are no hard and fast rules, it is important to discuss these terms during the early stages of the home buying process. If you have any question in mind, feel free to seek advice from our real estate experts.