Does the Buyer Pay the Real Estate Agent's Fee?
Q - I'm ready to buy a home. Do I have to pay the real estate agent?
A - In most instances, the buyer's real estate agent gets paid from the proceeds of the transaction.
The listing agent's Brokerage has a listing contract with the seller that specifies the dollar amount or percentage of the selling price that will be paid to the brokerage upon completion of the transaction. Out of that, the contract stipulates the dollar amount or percentage of the selling price that will be shared with the selling real estate agent's Brokerage.
The respective agents also have agreements with their Brokerages as to what percentage they will receive for their services. These fee agreements vary within a real estate company and among real estate companies.
So, if the home is on the multiple listing service, you are not likely to have to pay anything extra as your agent will be paid out of the transaction.
There are, however, situations where the buyer pays the agent either in part or the full fee. These are situations where a contract is drawn up between the selling agent's brokerage and you.