There are too many confusion on how Realtors® get paid in the public’s eye

Thus, educating consumers on this issue is important. Realtors®, Real estate agents, mortgage brokers and title companies are paid only when the property closes and funds. If something happens in the middle of the transaction, no one gets what they want.

If you are a Seller, you typically pay fees for BOTH Realtors® involved in the transaction, ie. the Realtor® representing you and the Realtor® representing your buyer.

If you are a Buyer, the services offered to you by your Buyer’s agent is typically paid by the Seller, hence it **may be free to you.

There are NO set STANDARD fee. Each real estate company and Realtor® may have a  fee they set for their business service and company policies on how they charge. Anti-trust law prohibits price-fixing. Hence, you must call individual companies and Realtors® to find out what their fees are.

Signing the Buyer’s Representation Agreement

Realtors® require a signed buyer’s representation agreement with the client. Signing this paperwork means the buyer client gives exclusivity to the Realtor® to work solely with him or her to find their next property. Not all Realtors® may not require this paperwork. But any good agent would at least mention about the exclusivity and what it represents.

Also, Realtors® are independent contractors of the business name they are associated with. 99% of the agents are not employees. For example, Realtors® pay a fee to be associated with the real estate companies of their choice. The Realtors® pay for ALL BUSINESS EXPENSES. These expenses are not limited to:

• Education and other professional dues to maintain their Realtors®’ licenses
• All auto expenses (gas, insurance, maintenance, etc.)
• All communication devices including computers and software (cellphone, iPad, etc.)
• All business expenses (depending on company policy)
• All marketing expenses (marketing themselves or marketing their listings, etc.)
• All insurance expenses (health & medical, disability, etc.)
• Retirement fund, if any. There is really no employer matching.

So, when a Realtor® gets his/ her check, through the eyes of the consumer, it may seem a large paycheck but most of it have its designated names before the individual Realtor receives his/ her portion.

Email Loreena CALL TODAY (214) 783-2210 Loreena Yeo lives, plays and works in Frisco TX since 2000. Owner/ Broker of 3:16 team REALTY - a local Real Estate Company. Moving to Frisco TX? The UNOFFICIAL Ambassador of Frisco TX. Search Frisco TX homes now. Position you to become an informed, ready Frisco TX home buyer. Find out how Loreena sells homes in 1/3 of time than the average local Realtor®. Be an informed real estate consumer in Frisco TX. Read raving fans' reviews. CONNECT ON SOCIAL MEDIA PLATFORMS: Like what you read on this blog, subscribe for more eNews & updates. Enter your email address: