How do home buyers’ agents get paid?

Keys

How and When Does the Money Change Hands?

Did you know that real estate agents can’t accept money directly from buyers?

Real estate commissions are paid like this:

  • The seller pays the listing brokerage.
  • The listing brokerage pays the listing agent.
  • The listing brokerage pays the buyer’s brokerage.
  • The buyer’s brokerage pays the buyer’s agent.

Compensation is typically made at closing when it’s deducted from the seller’s proceeds from the sale.

The seller effectively pays your buyer’s agent to negotiate on your behalf.

Buyers don’t have any say in how much commission is paid by the seller, and they don’t have to worry about personally compensating their agent. Of course, they’re free to do so if they want to sweeten an offer made on the home by offering to pay a portion of the seller’s commission. But again, the buyer cannot pay her agent directly.