• Earning a full commission, if the opportunity arises, may tempt the agent to coerce a deal that you might not accept otherwise. • Your agent may inhibit all access to your listing through buyers with agents. 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.
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