How Do Agents Get Paid?
The Buyer Broker Agreement Agents working with buyers enter into written agreements with those buyers before touring a home, either in person or virtually. That agreement must specifically disclose the amount or rate of compensation an agent or broker will receive or how this amount will be determined. The amount must be objectively ascertainable and must not be open-ended. For instance, $X or X% is permissible, but a range of commissions is not. The types of compensation available for brokers working with buyers would continue to take multiple forms. This includes but isn’t limited to: A fixed-fee commission paid directly by buyers Concessions from the seller A portion of the listing broker’s compensation Offers of Compensation Offers of compensation, or the ability of listing agents to compensate agents representing buyers for the value they bring to the transaction, are still an option under the practice changes. Offers of compensation benefit both buyers and sellers. For buyers, they promote access to representation throughout the home-buying process, which will help consumers achieve the dream of homeownership on terms that work best for them. For sellers, it helps to broaden the pool of prospective buyers by lowering the barrier to entry for those who may not be able to afford to pay buyer-agent compensation out of pocket. This is particularly important for lower- and middle-income buyers who have challenges saving for a down payment, and it enables REALTORS® to be compensated fairly for the value they provide. If there is an offer of compensation from the listing broker to the buyer broker, the agreement can be memorialized within a broker-to-broker agreement before the buyer broker
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