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 agreement, or a listing agreement.
HOW REAL ESTATE AGENTS ARE PAID
The compensation structure for real estate agents can vary, especially with recent regulatory changes that offer more flexibility and transparency. Agents are required to disclose their compensation arrangements clearly in the buyer agreement. This ensures that you, as a buyer, understand exactly how your agent will be compensated and can make informed decisions.
Possible Compensation Structures
Recent regulations now allow for more varied compensation structures. Buyers will need to be proactive in understanding the costs associated with their agent's services, and may need to factor these costs into their overall budget for purchasing a home. Here are some of the ways a buyer’s agent can be compensated: 1. Split Compensation: Starting August 17, 2024, compensation information will no longer be communicated via the MLS (Multiple Listing Service). Compensation agreements based on commission must now occur off-MLS through negotiation and consultation between real estate professionals and their clients. These agreements may still follow the traditional split compensation model, where real estate agents are paid a commission based on the final sale price of the home. This compensation is typically a percentage agreed upon between the seller and the listing agent. If using this payment model, the buyer's agent would receive a portion of the compensation, as arranged between the listing agent and the buyer's agent. Typically, all compensation payments go through the broker managing the brokerage where the agent works. From there, the
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