Who pays the commission?

Who pays the buyer's agent's commission?

If you're buying a home and working with The Kennedy Group as your Realtors 99 times out of 100 you will NOT end up paying the buyer agent fee. It comes out of the proceeds of the seller of the house. This is a common misconception held by many buyers, especially first-timers. 

The real estate agent's commission is an agreement between the seller and the listing brokerage, which is then shared with the buyer's agent who brings a buyer to the table. When the sellers and their agent are negotiating terms of listing, they are also discussing the total compensation the sellers will be paying both the buying and selling agents. A buyer going straight to the listing agent or home builder is not a guarantee to add flexibility to the dollar amount the seller is willing to accept.

As the buyer, the thing to remember is this.....  Don't worry about who pays the commission.  It's highly unlikely to be coming from you.  Let us worry about that so you can focus on finding the right house.  Let us guide you through the process.  

The buyer certainly has their fair share of costs to keep in mind. First and foremost is making sure you have an appropriate down payment and earnest money saved up.  Buying a home in Utah, especially in a red-hot market, is always going to be smoother with a solid downpayment.  Secondly, the costs associated with originating a mortgage, title work, and other miscellaneous pre-paid, escrowed funds.  Buyers' loan closing costs can be paid out of pocket, or wrapped into the mortgage and paid for throughout the life of the loan.  Lastly, the costs associated with a home inspection and appraisal are typically out of pocket expenses that will need to be budgeted for.  These cannot be wrapped into a loan, with rare exception. Consult with a qualified loan officer and your Realtor to come up with a strategy that makes the most sense for your specific situation.  

We'd love to arrange a home buying consultation to discuss any questions you may have about the process.  Click here to reach out to one of our highly qualified professionals so we can get the process started today!


Posted by Dan Kennedy on


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