How Commissions Work

Understanding Listing Agents

When a listing firm agrees to market a property, he or she agrees to a fee with the seller, typically offering a portion of that fee as a cooperative agreement with an agent who brings in a buyer.

As an example, let's say a home owner decides to list property with a listing agent and agrees to pay a commission to the agent when the home sells. Typically, if the listing agent also finds a buyer, he or she will receive the entire commission.

If a buyers' agent finds a buyer, the listing agent will receive a portion of the commission with the remaining portion going to the agent who finds the buyer.

Many buyers are under the mistaken impression that since there is an agent working with them to buy a home, this agent must be on the side of the buyer. Unless those buyers have hired an exclusive buyers' agent, they may have no advocate at all.

In the previous example, the listing agent typically agrees to split a portion of the listing commission, so the buyer's agent would receive compensation through the Multiple Listing Service agreement.

Since there is already a commission built in to nearly all home prices, doesn't it make sense to use a portion of it to pay your agent, instead of all of it to pay the seller's agent?

Avoiding conflict of interest

The important point is that the exclusive buyer's' agent works for buyers only and never for sellers, insuring that the buyer-client will receive 100% loyalty and service without any conflict of interest.

Thus, the advantage of working with an exclusive buyer's agent is clear - you have a home buyer advocate who works only for you at essentially no additional cost to you! This is the advantage that working with an exclusive buyer's agent offers you, and the difference you must understand to maximize your home-buying experience.

In the Triangle, one company stands without peer as an advocate for you. Buyers Advantage Group Realty offers very experienced agents who exclusively represent buyers. They never list a home and can never disclose confidential personal and financial information about you to anyone else in the home buying process.

Please click here to learn about what our agents can do for you.