As you may have already noticed, purchasing a home can be overwhelming, especially if you’re a first-time home buyer. There is so much information to absorb and process along with the overwhelming cost and knowing exactly what is expected from you as a buyer. I have had many conversations with first-time home buyers whom have made the comment that they are not working with nor planning to work with a Real Estate agent. My response is always “may I ask why you are not wanting to hire a Real Estate agent to help you?” The answer is usually “because I don’t want to pay or I can’t afford to pay their commission”.
Buyers paying their agents commission seems to be a very common misconception among first-time home buyers. A buyer’s Real Estate agents commission is not paid by the buyer, it is paid by the seller. All Real Estate commissions to both the listing agent and the seller’s agent are paid by the Seller. Now technically the buyer is paying the commission because the commission agreement is in the sale of the property and the properties listing price includes the Real Estate Commission fees. I know that was a little confusing so stay with me. So, yes again, technicality you as the buyer are already paying for an agent. If you are already paying for a service wouldn’t you want to use the service?
A Real Estate Agent is for your protection, they are educated, trained and licensed to assist you with your purchase contract. They are there to help negotiate your purchase and are looking out for your better interest. There is no reason NOT to hire a Real Estate agent when purchasing a property. Again, you are not paying their commission directly out of your pocket at the time of service, the cost of the home and the closing of the properties proceeds is what pays for the RE agents commission. An no this is NOT part of your closing costs, remember this is priced in the sale of the property, the purchase price. A good source to read more about Realtors and their commissions is www.Realtors.com.
If you have any questions on what it looks like to purchase a home and to see if you would qualify, please give us a call.