Buying a home can be an exciting and fun process; you get to picture yourself in multiple homes, understand home values, and realize some of your biggest “likes” and “dislikes” in a home. For first-time homebuyers, the process can be both intimidating and overwhelming, with family and friends offering more advice than you can handle. For this reason, hiring a Buyer’s Agent can be extremely beneficial.

So how does a Buyer’s Agent make their money? Did you know that it doesn’t cost you a dime to have a Buyer’s Agent? That’s right, when you’re looking at homes that are listed by a Listing Agent; your Buyer’s Agent splits the commission that the Listing Agent makes. That’s right; the seller is basically paying for both Agents when they decide to list their property for sale.

So what happens if you buy a property that’s listed without a Buyer’s Agent? If you decide not to use a Buyer’s Agent, the Listing Agent will still make their commission; they just keep the full commission instead of splitting it with your Agent. So essentially, you’re not saving yourself or even the seller any money at all. In some cases, when a buyer knows this, they can try to negotiate with the Agent on a possible reduction in commission, which would go towards the purchase of the sale. While many Agents don’t like to negotiate their commission, especially with a outside party, some may entertain the idea.

Once your Berkeley Real Estate Agent makes their money from the sale, they still need to pay their Broker a split or a flat fee. Your Agent is also spending money every time they meet with you on MLS sheets and gas money. For this reason, many Buyer’s Agents would like their buyers to sign an agreement to guarantee their commission.

In real estate, if you don’t have a written contract, your argument most likely won’t hold up in court. So, if your Buyer’s Agent drove you around for six months, looking at two homes a week and you finally find the home of your dreams, it’s only fair that they can make a commission. Just as sellers have tried to get around the rules, plenty of buyers have tried cutting the Agent out of the equation at the last minute. A buyer’s agreement is a contract that protects the Agent’s interest in the purchase of your property.

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