I’ve worked with many buyers over the 24 years that I’ve worked in real estate. Surprisingly, the majority of those buyers were under the impression that they would have to pay me to help them find their perfect home. They would ask me, “I want to use you, but how much do you charge?” It was my pleasure to tell them that my services don’t cost them a dime! They would sometimes have a hard time believing that, but it’s true! I’ll explain below.
The seller is who pays the Realtors. When the home is sold, the buyer and listing agent split the commission that the home-seller pays! As a home-buyer, you don’t pay your real estate agent anything.
How Are My Services Free to Home Buyers??
Well, short answer… the seller pays the Realtors. When the home is sold, the buyer and listing agent split the commission that the home-seller pays! As a home-buyer, you don’t pay your real estate agent anything. I repeat… the home-buyer does not pay a Realtor anything!
So yes, we do make money for our job. But, that charge does NOT fall on the home buyer! Pretty cool, huh?
That leads me to another relevant question that comes up a lot. “If I don’t pay you anything, then what am I paying for when I pay closing costs?” The answer is simple and I lay it out below! 
What are Closing Costs?
Closing costs are just that… they are costs that are associated with closing. When a home closes, there is a lot that has to come together. Your mortgage officer has to send the contract to underwriting to be approved, the attorney has to ensure that all of the documents are accounted for and that the “HUD” is ready, plus tons of other last minute tasks. These services provided by the attorney and your mortgage company are not free.
The major costs that are paid by the home-buyer are the fees associated with your loan such as the loan origination fee and the cost of the attorney to conduct the closing and ensure that the home is sold and the deed is transferred legally.
Below is a small summary of the average things that go into a home-buyers closing costs:
- Loan Processing fee (loan origination, application fee, underwriting fee, discount points, prepaid interest, etc.)
- Title company fee/ Title Search
- Closing Attorney
- Surveyor Cost (If needed)
- Inspection Cost
- Appraisal Cost
- Any Taxes or Homeowner’s association (HOA) fees
In Conclusion...
As a home-buyer, you do not pay Highland Real Estate anything! Because real estate is set up this way, it is important to find a Realtor who is competent and who you enjoy working with. The price difference between a good Realtor and a bad one is… you guessed it, nothing! Make sure you are going into the home-buying process with someone you trust. It will make your life easier!
Thank you so much for reading! I hope you have a great week!
Sincerely,
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