How This Realtor in Beaverton Gets Paid
It's the same way this Realtor in Portland gets paid . . . HA HA HA
But seriously . . .
I just read an article on MSN Money: "A Who's Who Guide To Buying Your First Home"
As a Beaverton real estate agent, working with a lot of first time buyers, I go over the "basic" steps of buying a home. One of the topics of discussion is: How I will get compensated when acting as the buyers Beaverton real estate agent.
The article I read makes a few statements which are not accurate, and often quite misleading. As a Realtor in Beaverton, I do NOT get paid by the sellers.
To quote from the article: "Considering that a buyers agent usually doesn't cost a cent, it doesn't make much sense to go without one, Wolf and Bray say. A buyers agent makes a commission that the seller pays, though this sometimes is worked into the final sale price. If you buy a home without an agent, you could save on the purchase price, but it's not a certainty."
WRONG . . . WRONG . . . and WRONG!
Well, this IS correct: . . . a buyers agent doesn't cost the buyer. And it sure doesn't make much cents sense for a buyer to go without a Beaverton real estate agent.
The other "quotes" are so off the mark.
- MYTH #1: "A buyers agent makes a commission that the seller pays" -- WRONG!!
The LISTING AGENT negotiates with the homeowner AKA Seller. The commission negotiated is between the listing brokerage and the Seller. This Realtor in Beaverton has NOTHING to do with that. It's CONTRACTUAL between Seller and the listing brokerage.
- MYTH #2: ". . . though this is sometimes worked into the final sale price" -- WHAT?!??!?
Commissions are worked into the final price?!? They have got to be kidding me. The listing agent goes to the property to meet the owner AKA seller. The listing agent prepares comps and CMA's (Comparative Market Analysis) to price the property -- acccording to the CURRENT MARKET!! The list price is NOT based -- never was based, and never will be based on anything OTHER THAN: what the current market values are pricing out at. There is NO SUCH THING as having a commission "worked into the final sale price." A current market value is discussed with the owner AKA seller. Once a current market value is established, the listing agent, typically, prepares a NET SHEET and deducts the mortgage pay off amount, taxes that may be owed, commissions . . . and then seller will have a rough idea of what they will NET* from the sale.
As a Beaverton real estate agent specializing in EXCLUSIVE Buyer Agency . . . I actually do know how a buyers agent is paid. It's NOT from the seller.
In my next post How This Realtor in Portland Gets Paid I'll finish up with my analysis of how a buyers agent gets compensated. Hopefully, dispelling the myth of "the seller pays."
As a Realtor in Beaverton . . . working exclusively as a buyers agent . . . I get a little miffed (ticked off, annoyed, P.O'd) when I read these types of articles which are CONTRARY to how a real estate agent in Beaverton is compensated.
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