So, of course, as I’m in the Facebook group posting the previous comment about why you want/need your own Realtor when you having a home built… or even if you are just buying an established home, someone asks me,
“So who pays the buyers realtor”?
This is an excellent question…. and let me help answer it…
The seller/builder pays their realtor. The sellers realtor splits their commission with the buyers realtor. No buyers realtor? Then the sellers realtor gets the full commission. Some realtors will offer a discount to the the seller if they represent both sides and this is called dual agency. Let’s break this down…
A purchase/sale agreement is a legal contract.
So…. let’s say you’re going through a divorce…. would you want to share an attorney with your soon to be ex-spouse? No… probably not. Buying, or selling, a home is the same…. why would you want to share your realtor with the other party? Who is that realtor REALLY working for?
Dual agency isn’t illegal in Washington, but there are states where it is.
So, let’s go back to building a home, and using your own Realtor vs using the Builders Representative….Most builders will work with a buyers agent. Realtors bring clients to good builders. We trust their build process, & their finished product. These builders also know that, as the buyers Realtor, we will assist in making the process smoother for the builder as we are the ones answering questions, setting up inspections (yes…. even in a new home you need inspections!), and that we will be running interference if something goes astray. In return for a good build, & happy clients….we bring more clients. The buyers agent commission is paid from the builder. It is NOT an added cost to you, the buyer. If you do not bring your own Realtor, you do not get a ‘discount’, or added upgrades…or anything like that. You are just entering into a legal contract without your own representation. It is as simple as that….
There are some builders who won’t work with a buyers agent though…. but the majority of those builders….well, I know many agents who’ve had issues with their finished product & build process…..
Sometimes I will hear someone say that they’ll get ‘a better deal, if there is no buyers realtor…. and again, this simply isn’t true. You don’t get a better deal…. you just don’t get any representation in the largest purchase you’ll ever make.
As always, if you are looking for sugarcoating… this is the wrong bakery to come to.. . LOL