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How much does is cost to hire a great Buyer’s Agent?

Working with a Buyer’s agent is usually free for the Buyer. The Agent that represents the Buyer is typically paid their commission by the Seller’s Agent, not the Seller. Many Buyers mistakenly believe that if a Seller does not pay a Buyer Agent’s commission, that they will reduce the price of the home in an amount equivalent to the Buyer Agent’s fee.  This is not true. Once a Seller signs a listing agreement with a Seller’s Agent, they have contractually agreed to the total amount of commission that will be paid once the house is Sold regardless of how many agents are involved. The total commission is the same for the Seller regardless of whether there is a Buyer’s agent or not. Therefore, if a Buyer purchases a property without the use of a Buyer’s agent, the Listing Agent is entitled to keep the commission that would have been paid to the Buyer’s agent.  Despite being paid both commissions, that Listing Agent is legally obligated to ensure that the transaction is facilitated in the best interests of the Seller, not the Buyer. For this reason, it is not only beneficial to have a Buyer’s agent on your side, it can also be detrimental if you enter into a transaction without representation.

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