When you purchase a home using a real estate agent, where is their commission from? ?

Question

I want to know if their commission fee comes out of the total asking price of the home or is it an additional fee that the current home owner pays? Also, If I have a agent, but I found the home on my own, how much of a commission should the agent get? If I did most of the legwork, how do I go about possibly splitting the commission.

Answer 1

As a buyer, you will not have to pay a commission, which comes out of the seller's funds.

Agents do much more than just find you a home. They're responsible for looking after your best interests and seeing that everything is done legally and properly. As a buyer, you are much better off with a buyer's agent at your side, particularly because you don't pay for their services!

You can not legally split the commission with an agent or broker on a real estate deal. Every benefit you receive must be detailed on the closing document.

Answer 2

The seller of the house pays a percentage of the sale price of the property as the commission in entirety.  If another agent brings the eventual buyer, there is an agreed upon split of the commission between the two agents.

You cannot get a commission split, since the laws prevent payment of a real estate commission to anyone who is not licensed to do so.  If you find the house 'on your own', the listing agent will simply keep the entire commission, splitting with no one.

From your questions, I can see what you are attempting to do, and it won't work.

Answer 3

There is no way for you to get the commission, it is illegal.

If you go in without an agent of your own the sellers agent keeps the entire commission.   They will also be doing the "legwork", you will not be, they have to make sure everything is done legally and correctly.

Answer 4

The seller pays all of the commission which is split between the seller's agent & the buyer's agent. If you find a house & negotiate on your own, your agent gets no commission.