WTF Wednesday: If I am a buyer do I have to pay a broker fee?

Navigating a real estate purchase is tricky business. While the internet and real estate tools such as Compass Collections has allowed clients to at least start their home buying search this is no substitute for an experienced professional. A seasoned real estate professional who knows the market can save you time and money by helping you structure and submit an offer on your behalf. The best part about being a buyer is that you are able to get the services of said real estate professional for FREE! See in a transaction there is the Listing Agent" and “Buyer’s Agent”. The Listing agent is the agent working for the seller. You need a “buyer’s agent,” who represents you exclusively. Now there are times where you could encounter what’s called “dual agency,” in which the agents representing both sides of the transaction work for the same brokerage; it could even be the same person. However, this does require transparency and disclosure. Agents must disclose the situation in writing to both buyer and seller and get written approval.

The total agent’s commission (typically 5-6% of the purchase price) comes out of the sellers sale proceeds. So if you are looking to purchase, you lose nothing in finding the right buyers agent to work with you and help guide you through the home buying process which in places like NY it is not an easy task nor for the faint of heart.

To start assembling your team including a broker please refer to our previous post - Tips For First Time Home Buyers