To avoid surprises or missteps in a dual agency sale, always ensure you have clarified important details with your agent ahead of time. You can do this by using an exclusive buyer agency agreement, or a listing agreement.
HOW REAL ESTATE AGENTS ARE PAID
The National Association of Realtors® 2022 Profile of Home Buyers and Sellers states approximately 10% of homeowners opted to put their homes up for sale in 2022 without using a real estate agent or Realtor®. A handful of For Sale By Owner (FSBO) transactions dealt with sellers and buyers who previously knew each other or were directly related; 87% of buyers chose to work with a real estate agent or Realtor®, on the buyer’s side. Real estate agents and Realtors® traditionally have been compensated through a commission at the end of each sale, unlike professionals in other fields who may bill by hourly rates or earn a salary. However, recent changes in industry regulations may introduce more varied compensation structures, including direct payment options for buyers. For example, if an agent has worked with a seller or a buyer for months, they don’t get paid for the time spent if there is no transaction during that period. Agents receive a commission once the transaction goes through to settlement (closes) based on the selling price of the home. At that point, the commission is earned. The commission structure, traditionally negotiated between the seller and the agent, has typically amounted to around 6% of the sale price. New regulations may influence these negotiations, and some brokerages offer commission discounts to sellers.
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