A real estate agent is usually involved when buying a home and for the most part, buyers like to deal with them. However, a foreclosed home is slightly different from buying a regular home that has been put up for sale. For instance, this isn’t going to be priced at the same price as other homes; in most occasions, the prices are slightly lowered so that the bank can receive their money back. The most interesting point is who is responsible for paying the realtor? That is certainly something that more and more buyers are looking into so, who is responsible exactly?
Banks Pay the Commission
Basically it is the bank or banking institute that actually pays the commission to the estate agent. The agent’s fees are calculated once the sale of the home has been completed and then the amount will be added into the final cost of the home. It is usually the bank who pays the realtors and this amount can vary considerably also. Commission fees vary from five percent to fifty percent; usually, it’s a lot more affordable than fifty percent, but it can vary. It will depend on the type of home being purchased and the banking institute being used.
The Buyer Isn’t Off the Hook Quite Easily
While you’ll find the banking institute is the one to actually hand over the money to the realtor, the bank isn’t the only one who pays the agent. Now, a real estate agent must be paid for their time spent and utilized; however, their costs are built into the final sale of the home. That doesn’t mean to say the buyer isn’t the one who still has to pay. Yes, the bank pays the agent but in actual fact, the buyer still has to pay a portion of the costs.
That is really important to remember and something you will want to think about even when you think you’re getting a bargain. There are going to be bills to pay and the agent must be paid too. Even if you are buying a home, you will have to pay something to the fees or commission.
Be Sure the Commission Costs before You Sign a Contract
A lot of people get carried away when it comes to buying a new home and end up getting stuck with a massive fee for the agent. That is a real nightmare and while most fees aren’t overly costly, they can still add up. Realtors want and need their fees and while the banks usually pay part of the commission, you too will be responsible. However, every situation is different so it would be good to get some clarity as to who pays the fees and the overall fees too. This is really quite important and you will want to know more. checkout latest news at http://www.inman.com/2017/01/12/how-real-estate-agents-can-win-homebuyers-trust/
Foreclosed Homes Come With Hidden Fees
Buying a foreclosed home can often come with a great deal for many buyers and yet there may be some hidden fees attached to the overall costs. The reason why is simply because the agent needs to be paid. You are going to find it is really quite necessary to understand the overall fees and the commission’s amounts. Realtors are paid via banks but buyers have to pay too.foreclosed home