Free Information for Buyers
In conjunction with the Texas Association of REALTORS and the National Association of REALTORS, both of which I am a member, I am pleased to offer you the following complimentary handouts. I realize how frustrating it can be when other sites force you to register, that's why my information will be available without registration. Then, when you are ready, call or e-mail and we'll discuss your next steps.
Handouts for Buyers
Search the NTREIS MLS
(North Texas Real Estate Information Systems Multiple Listing Service)
How Are REALTORS® Paid?
This is one of the most confusing aspects of a real estate transaction and requires a detailed explanation. REALTORS are paid on commission but there are probably some facts you do not realize.
Who Pays?
On all of the NTREIS MLS listings, the commission is paid by the seller (of the property) to their broker at closing. This is accomplished by using the funds from the sale of the home. The seller's broker, in turn, will pay the buyer's agent a co-op fee for "selling" the home for them. That's why MY buyers do not pay my commission, even when I'm working for them as their agent. Some brokers charge a "closing" fee ($150 - $199) to buyers to work with their agent. I do not.
Nearly every agent is paid on contingency. In other words, they only get paid when a deal closes. If a buyer's financing falls through or there's a problem elsewhere and the deal doesn’t close, they don't get paid. In light of this fact, we are all committed to ensuring a successful closing. But we also have a fiduciary duty to you, whether
you're buying or selling a home. This means we're all obligated to look out for your
best interests and advise you accordingly. Sometimes, looking out for your best interests means we won't get paid.
How is the commission divvied up?
Commissions are paid to and distributed by the listing broker. The listing broker retains a portion of the funds before dispersing funds to the listing agent. The listing agent is the person who manages the sale, the one who put the sign in the front yard.
If the buyer is represented by an agent, the listing broker will split the commission and pay the employing broker of the buyer agent. The buyer agent broker will retain a portion and pay the remaining amount to the buyer agent.
The fees subtracted by the brokers are used to pay for all of the services provided by the broker companies including office space, advertising, phone, errors and omissions insurance, etc. By the time all the fees have been subtracted, the buyer and seller agents will receive a fraction of the total commission paid.
Most agents are independent contractors. This means we are not employees of RE/MAX®, Coldwell Banker®, Century21®, etc. Translation: We don't receive typical employee benefits such as medical insurance, expense accounts, or company-provided autos. We pay our own self-employment taxes, health insurance, liability insurance, license fees, MLS fees, association fees (NAR, TAR, MetroTex), as well as our own business expenses (car, auto insurance, telephone, etc.). What’s left over is our paycheck.
What is a REALTOR®?
Not all licensed real estate agents and brokers are REALTORS. REALTORS are licensed salespersons or brokers that are members of a local board. To use the REALTOR registered trademark, an agent must be a member of the National Association of REALTORS (NAR) and must follow the strict Code of Ethics.
All of the licensed professionals at RE/MAX Urban are REALTORS.