Understanding Buyer's Agency Compensation

Buyer's Agency Compensation is a crucial aspect of real estate transactions that often goes unexplained. At Better Homes and Gardens Real Estate Beyond, we believe in full transparency regarding how real estate professionals are compensated for their services. This page aims to clarify the concept and explain our approach to listing compensation.

Current Offers of Buyer's Agency Compensation

Common Questions Regarding Buyer's Agency Compensation

What is Buyer's Agency Compensation?

Buyer's Agency Compensation refers to the commission offered to the agent representing the buyer in a real estate transaction.

 

This compensation is typically a percentage of the property's sale price and is often paid by the seller from the proceeds of the sale.

How much is a Buyer's Agency Compensation?
Commission rates vary depending on the agent, their brokerage, and specific circumstances for each transaction.
 
Commission rates are and always have been negotiable. Commissions are generally a percentage of the home's sale price or a fixed dollar amount, that is agreed upon between the agent and their client.

Are Sellers Required to Offer Compensation?

No. Sellers have never been required to offer compensation of any amount to the buyer's agent. Many sellers opt to provide a form of compensation when they sign the listing agreement with their agent.

 

By offering a buyer's agent some form of compensation, more potential buyers may be interested in a property.

Why Do You Publish Compensation Offers?

We publish buyer's agency compensation offers for our active listings in an effort to be fully transparent about how a buyer's agent will be paid through a transaction.

 

This benefits buyers by letting them know how much their agent will be paid, and benefits sellers by showing them what competing properties are offering.

What if a Seller Doesn't Offer Compensation?
If a seller doesn't offer compensation with their listing, there's no penalty to the seller. Their property will still be published and advertised to the same level as any other property.
 
Buyers, however, will have to come to an agreement with their agent about compensation if they choose to make an offer on a listing that is not offering buyer's agent compensation.

Do Agents Agree on a Commission Rate?

Real estate agents and their brokerages are prohibited from working together to create a "standard" or a "mutually agreed upon" commission rate.

 

A buyer's agent and a listing agent can agree on a compensation amount with a Broker-to-Broker Compensation agreement. This is specific to each listing and clients are both aware of the amount agreed upon between the agents.