If you are selling or buying any type of real estate there are many questions you will need answered. One of the most common questions is how realtors get paid. Real estate brokers get paid a commission or a success fee and are paid only after a transaction closes. If the broker is unsuccessful the real estate broker does not get paid. Sellers will hire a broker to market and sell their property for a set rate of commission. All listing agreements must be in writing and signed by all parties. The listing agreement outlines a set of terms the seller and broker agree to follow during the term of the listing, commonly 6 months to a year. These listing agreements can be amended by doing so in writing. Price, open houses, home warranties, and the length of the listing agreement are the most common items amended in the listing agreement.
In a listing agreement the broker is acting as sellers agent and must remain loyal to the seller. The broker may draft offers to purchase for buyers and is acting on behalf of the seller. Buyers have the option of retaining a broker to be their agent with a written agreement called a buyers agency agreement. The buyer’s agency agreement has a set of terms outlining the types and price range of the properties the buyer is looking for. The buyer’s agency agreement is often for 6 months to a year in length. The buyer’s agency agreement will state how the broker will be paid upon successful closing of a property. This can be paid by the seller through a co-broke with the company listing the property or by the buyer. The buyer’s agency agreement is in writing and signed by all parties.