Real Estate Commissions

Who pays for what, the buyer or the seller?

Real Estate CommissionsWhen making a Real Estate transaction, there is always the same and old question: who is going to pay for what here?

Many Real Estate Agents agree in that the seller pays the Real Estate commission, while some other say that the buyer is the one who pays for the commissions

Anyway, it all depends on how the sales contract has been made. The sales contract outlines where the money comes from, who will get it, and to what extent in the payout procedures other parties receive funds.

The sales contract basically dictates how the giving out of the proceeds will be done because other costs to the transaction such as lawyers, agents, title companies are also attached.

In almost all cases, the buyer never pays Real Estate commissions. Frequently, the seller hires a listing agent to sell the home.

If the listing agent agrees in paying out funds to a Real Estate Selling Agent, and if this selling agent takes the buyer to the table, the seller, by sales contract, will not pay the Real Estate commission, the listing agent will do. In other circumstances, the buyer's agent may reject the payment offered by the listing agent. The listing agent will be paid by the seller.

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