Understanding the real estate and investor connection

Depending on the conditions, both can be right. I you are purchasing a property listed by another agent or the agent you are using, the seller pays the commission. If you are buying a property that is a FSBO or not listed by an agent, you can pay your agent to assist you with the purchase.

Al

I recently started a thread on this same subject. Check it out and read Indiana-Joe's response, it is very informative and exactly what you are wondering about right now.

Heres the link:
http://www.deangraziosi.com/real-estate-forums/marketing-buyers-and-sell...

Hope this helps and good luck!
-Mike

Hi Erick,
If it is a listed property by an agency then the seller pays the broker, the broker pays the agent. A license agent is only allowed to recieve a comission from their broker. It is between the broker and the agent what their split is. Any funds recieved from a sale the broker has listed under his or her agency that has been sold by an agent is split with the broker. If it is not listed with anyone. Then it will becomes your responsibility to pay the agent. In my state anyone who holds a license to sell real estate must go thru the broker for all transactions done whether it was listed or not, any earned commision must be split. If you involve your realtor on the transaction. Other wise if there is no agent then there is no fee. Continued success........Lubertha

Erick,
Lubertha is also a real estate license agent and investors so she is right what she told you who gets paid. Good luck !!

Warm Regards,

Paul T. La Moy

Thank you for that excellent explanation! Very helpful and informative! Much appreciated.

Thanks and good luck!
-Mike

Ok i think i understand what everyone has said but one more question scenario. If I go through my agent and he or she goes out and finds the criteria I am looking for but it is listed through another agent. Does my agent still get paid from the seller or do I have to pay the difference since there would be two agents involved once the closing is done?

The seller makes a contract with a Real Estate Brokerage to list their property. The seller agrees to pay a commission to the listing agent, through their broker, if they complete the sale. The listing broker then offers to pay a buyers agent, through the buyers broker, a portion of that commission if the buyers agent brings a buyer and the sale is completed. If the buyer decides to assign the contract to another buyer, the original buyers broker still gets paid by the sellers broker for bringing a buyer and completing the sale.