Do I Need To Pay The Buyer Agent Commission?

When you work with a buyer agent, you may be asked to sign a Buyer’s Representation Agreement (BRA) before starting your property search. While signing this agreement is not mandatory, it clarifies your and your agent’s roles and responsibilities. Generally, the listing brokerage covers the buyer agent’s commission, which means the seller pays the commission from the sale proceeds. As a result, the purchaser is typically not responsible for any direct commission payments or associated fees.

However, buyers might need to compensate their agent directly. This usually occurs when purchasing a property not listed on the Multiple Listing Service (MLS). In such cases, the compensation structure may differ, and discussing these details with your agent beforehand is crucial.

To avoid any surprises, always review the terms of the Buyer’s Representation Agreement thoroughly. This document will outline the compensation arrangements and any circumstances where you might be required to pay your agent. Clear communication with your realtor ensures that you understand the financial aspects of your agreement and can make informed decisions during your home-buying process.

By understanding the typical compensation structure and discussing any exceptions with your agent, you can proceed confidently, knowing that your interests are professionally represented without unexpected costs.

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