How Does a Buyer’s Agent Get Paid?

Did you that more than 6.5 million homes are sold every year in America?

Buying a home can be a complicated process, and it’s hard to know who to trust.

There are a lot of people out there who will try to take advantage of you during the home-buying process. You must understand how they get paid so you can make sure you’re getting the best service possible.

Keep reading to find out exactly what a buyer agent is, and get the answer to the question, “how does a buyer’s agent get paid?”

What Is a Buyer’s Agent?

A buyers agent is a professional real estate agent who represents the interests of the buyer in a transaction. The role of a buyer’s agent is to protect the interests of the buyer, negotiate on their behalf, and help them navigate the home-buying process.

You can find out why you should use a buyer’s agent here.

How Does a Buyer’s Agent Get Paid?

There are a few different ways that a buyer’s agent can get paid. The most common way is for the seller to pay the commission. The commission is typically 3% of the purchase price of the home.

So, if you are buying a $300,000 home, the commission would be $9,000. The seller pays this commission to the listing broker, who then splits it with the buyer’s broker.

Another way a buyer’s agent can get paid is by charging the buyer a flat fee. This fee is typically around $500-$1,000. The buyer pays this fee directly to the agent.

Lastly, some buyers’ agents will work on a commission basis, where they only get paid if they can successfully help the buyer purchase a home.

Procuring Cause

It’s important to note that the commission is paid to the brokerage, not the individual agent. This is because the commission is considered a “procuring cause.”

The procuring cause is the event that leads to the successful completion of a transaction. In other words, it’s what “causes” the sale to happen.

For example, let’s say you are working with two different real estate agents. Agent A shows you 10 homes and you end up purchasing one of them.

Agent B only showed you two homes but you ended up purchasing one of those. In this case, both Agent A and Agent B can claim to be the procuring cause.

This is why the commission is paid to the brokerage and not the individual agent. Because it’s the brokerage that was responsible for finding the home you ended up purchasing.

While the commission is typically paid by the seller, there are some situations where the buyer may be responsible for paying it.

For example, if you are buying a new construction home or a home from a builder, the builder may require that you use their in-house real estate agent and pay the commission.

Some Buyer’s Agents Ask for a Buyer Broker Contract

Some buyer’s agents will ask you to sign a contract, known as a buyer broker agreement. This contract is between you and the agent and it outlines the terms of your relationship. It should include things like the services the agent will provide, how you will pay them, and how long the agreement will last.

You are not obligated to sign a buyer broker agreement and you can work with a real estate agent without one. However, if you do decide to sign one, make sure you read it carefully and understand all of the terms before doing so.

Dual Agency Concerns

In some states, it’s legal for one agent to represent both the buyer and the seller in a transaction. This is known as dual agency.

For example, let’s say you are working with an agent who also represents the seller of the home you are interested in purchasing. In this case, the agent would be acting as a dual agent.

While the dual agency is legal in some states, it’s important to be aware of the potential conflicts of interest that can arise. Because the agent is representing both parties, they may not be able to advocate as strongly for either side.

If you are concerned about dual agency, you can ask your agent if they are representing any other parties in the transaction. You can also ask to see the property with a different agent.

What Happens If My Buyer’s Agent Isn’t Able to Find a House For Me?

If you are working with a buyer’s agent on a commission basis and they are not able to find a house for you, you may not owe them anything. However, if you have signed a contract, you may be obligated to pay them a fee even if they don’t find a house for you.

It’s important to carefully read any contract you sign with a real estate agent so that you understand your obligations.

The Benefits of a Buyer’s Agent

There are many benefits to working with a buyer’s agent. Let’s look at them now:


The home-buying process can be complicated and stressful, particularly for first-time buyers. A buyer’s agent can take some of the burden off your shoulders by helping you to find the right property and negotiate the best price.

They will also be able to offer advice on financing, inspections, and any other aspects of the purchase. In addition, a good buyer’s agent will have a network of reliable professionals that they can refer you to, such as home inspectors and mortgage brokers.

If you are thinking of buying a home, it is well worth seeking out the services of a qualified buyer’s agent. With their knowledge and expertise, they can make the process much smoother and less daunting.

Negotiation Skills

When it comes to buying a home, negotiation skills are essential. After all, the purchase price is not set in stone – there is always room for negotiation. This is where a buyer’s agent comes in.

A good buyer’s agent will be experienced in negotiation and will fight to get you the best possible price on your new home.

They will also be aware of the market conditions and what similar properties have sold for, so they can give you an accurate estimate of what your new home is worth. With their help, you can be confident that you are paying a fair price for your new home.


A buyer’s agent is objective and unbiased. This means that they are not working for the seller, so they have your best interests at heart. They will help you to find the right property, negotiate the best price, and ensure that the purchase goes smoothly.

With their help, you can be confident that you are getting the best possible deal on your new home. In addition, a buyer’s agent can also provide valuable advice about the local market and what to expect during the purchase process.

As a result, working with a buyer’s agent is one of the smartest things you can do when buying a new home.

Less Stress

Working with a buyer’s agent can help to take some of the stress out of buying a home. They will handle all of the details for you so that you can focus on finding your dream home.

Do I Need a Buyer’s Agent?

While working with a buyer’s agent is not required, it is highly recommended. They can save you time, money, and stress.

If you are thinking about hiring a buyer’s agent, be sure to interview several candidates to find the right fit for you. Ask them about their experience, qualifications, and what services they offer.

Do your research and ask around for recommendations. Once you have found a few agents you like, ask them about their commission structure and get everything in writing before moving forward.

When Does a Buyer’s Agent Get Paid?

A buyer’s agent typically gets paid when the deal closes. The commission is usually a percentage of the purchase price of the home and is paid by the seller.

In some cases, the buyer may be required to pay the commission. For example, if you are purchasing a new construction home, the builder may require you to hire their agent and pay the commission.

Be sure to ask your agent about their commission structure upfront so that there are no surprises down the road.

If You’re Not Working With an Agent

If you are not working with a buyer’s agent, you may still be responsible for paying a commission. This is typically 3% of the purchase price of the home and is paid by the seller.

Ready to Work With a Buyer’s Agent?

So, now you know how does a buyer’s agent get paid. If you’re in the market for a new home, it’s important to understand how buyer’s agents are compensated. In most cases, the agent is paid out of the seller’s proceeds, so there is no cost to you.

However, it’s always a good idea to ask your agent about their fees and how they will be paid.

We hope this article has answered some of your questions about buyer’s agents and their compensation. For more buyer’s agent tips and information on real estate and other topics, check out our blog!