It is a common myth among first time home buyers that they have to pay a buyer’s agent’s commission or that if they work with the listing agent, they will not have to pay a buyer’s agent’s commission. Here we’ll help explain how commissions work and answer the common question, who pays the buyer’s agent’s commission in Austin?
How Real Estate Commissions Work in Austin
When a seller hires a Realtor to sell their house, they agree to pay the listing broker a certain amount or percentage of the sales price. If the buyer has their own Realtor, the listing broker is going to pay a portion of the commission the seller agreed to pay them to the buyer’s broker. If the buyer does not have their own Realtor, the seller’s agent will keep all the commission the seller agreed to pay.
Q: Who Pays the Buyer’s Agent’s Commission in Austin?
A: The seller. Realtor’s commissions for both buyer and seller come out of the seller’s proceeds for the house. Whatever the seller agreed to pay the listing broker (which includes commission for the buyer’s agent) is paid by the seller to the listing broker. The listing broker then pays the amount they agreed to pay the buyer’s broker (agent who brought the buyer). This fee is posted in the MLS, which is the database Realtors enter their listings to let the public know they are for sale. What the buyer agrees to pay the seller for the property is all the buyer will pay. The one exception is closing costs, which are the lender and title company’s fees for processing the transaction.
What if I Don’t Have a Buyer’s Agent?
The listing broker will keep the entire amount of the commission the seller agreed to pay them for selling the property. You don’t save money, or get a discount, buying without a buyer’s agent. Essentially the listing agent is getting paid twice as much to get the seller the most money for their home.
Buyer Representation is Free to Austin Home Buyers
The seller has already agreed to pay the buyer’s agent’s commission. Hiring your own Realtor to represent you in the transaction is the only way to know someone is working for you. Experienced buyer’s agents know how to help you investigate a house, so you know exactly what you’re buying. They’ll help point out resale difficulties you’ll face when you have to sell your home, which will save you money and frustration. Buyer’s agents will also negotiate hard on your behalf, so you’ll pay as little money as you can for a house.
Why Wouldn’t You Hire a Buyer’s Agent?
Buyer representation is one of the few services paid by the other party. If you get sued, the opposing party will not pay your attorney’s fees. Take advantage of your one free lunch in the world and let a buyer’s agent make the home buying process as easy and inexpensive as possible.
Looking for a Great Buyer’s Agent?
Our team has a combined 55+ years of experience in representing buyer’s. We know how to make this stressful process as easy on home buyers as possible. We’re also pretty good at negotiating great deals for our clients, even in this strong seller’s market. For more info about us and how we work, check out our Austin Home Buyers section. Then, fill out our Buyer Survey, email us at info@11OaksRealty.com or call us at (512) 827-8323 to schedule a no obligation consultation.