Buyer's Agent

Do Buyer's Agents work for free?
A buyer's agents services are at no cost to you – the buyer – but an agent's work is valuable, and they couldn't do it for free. So who pays their commission?

Paying an agent's commission on a real estate transaction is the responsibility of the seller*. The commission paid by the seller is the same, whether you use a Buyer’s agent or not.  If a buyer’s agent is used, the commission is split between the seller’s agent and the buyer’s agent. If a buyer's agent is not used 100% of the commission goes to the seller's agent.

The only people benefiting from your lack of representation are:

  1. The seller’s agent because they do not have to split the commission.
  2. The seller, because he/she probably sold their property for a higher price than if you had a professional negotiating on your behalf.

*Rare exceptions may occur when there is a For Sale By Owner (FSBO) or a Discount Broker offering in which case compensation for the Buyer’s Agent is usually negotiated in the purchase contract and may be paid by the buyer, the seller or both parties.