Ever wonder how New Orleans real estate agents get paid? You’re not alone, and we are here to answer your questions!
Who pays the real estate agent?
The seller does. So, when you go to lowball the seller – you need to remember that they are paying the commission on this house sale. The sellers always factor how much they pay in commission, closing costs, and every nickel into their bottom line.
UPDATE: As of 2024, there is a lawsuit about commissions and who pays real estate agents for their work. It has always been the case that a seller does not have to offer a buyer’s agent any commission. In this lawsuit, the verbiage will be made clearer for home sellers to understand. The seller may offer a buyer’s agent compensation for bringing a buyer to their home and getting the deal closed; however, THEY ARE NOT OBLIGATED to do so!
Can the buyer pay their agent?
Sure can. Some agents require their clients to supplement their pay if the sellers offer less-than-desirable commission.
With this lawsuit against the National Association of Realtors, some buyers will need to come up with the funds to pay their agents. Moving forward, some sellers may not offer any compensation to your agent. If this is the case, the buyer will either have to buy the home without an agent, pay a commission to their agent, or decide not to pursue the home.
Why would an agent ask their buyer to help pay the commission?
There is a thing called “limited service listing agents.” In these situations, they offer very little compensation, but the buyer’s agent must do all the work. Furthermore, the buyer’s agent must interact with the seller directly and handle all the paperwork. They also have to negotiate with the seller themselves.
These listings offer so little that your agent would only walk away with about $200-$500 after months of work.
Why does my agent deserve their pay?
I think this is a great question and am super happy to answer it! You’re paying for your agent’s knowledge and time. The only people with the time to run a real estate deal properly are those doing it full-time.
Homeowners insurance – need a good recommendation? Yeah, your agent has it. They know who has done people wrong. They also know people with the best rates.
Is your plumbing jacked? Your real estate agent has already been through numerous plumbers and can tell you who is good and who isn’t.
What should you ask to be repaired after home inspections? Your New Orleans real estate agent knows what is easy to fix and what isn’t. They buy and sell homes every single day. Even when something seems daunting, they can let you know if it truly is.
Are you reactive and a little hot-headed? Your agent can keep a level head and go back into negotiations and get what you want. No one responds to yelling well.
I can give 100 scenarios for why you should have a real estate agent representing you.
If I’m the seller – do I write a check?
No. It will be taken out of the proceeds of your house sale. If you sell your house for less than you owe – then you will write a check.
Sellers: You need the expertise of a professional. Your New Orleans real estate agent should be working hard to get you top dollar! We also know if the market is stagnant, what other houses are selling for, and the little things to get you to your goals.
Ready to buy or sell a New Orleans house? Text us!