What does it cost to use a realtor?

• Traditionally, there is little to no out of pocket costs as a buyer to use a realtor. This is because the real estate market is structured in such a way that the buyer's agent is paid a "finders fee" commission from the seller of the home to bring a qualified buyer to purchase their home faster. Because of this, if there is any up front, out of pocket cost at all, it is usually your buyer's agent < $1000 brokerage fee (although you can negotiate a realtor to cover that as well out of the commission the seller pays in your buyer broker agreement with them.) What this really means is that over the years, real estate fees have been wrapped into the relative equity of a home- no service is truly "free". The FTC came down hard on buyer agent Realtors advertising their services as "free" in 2020, so they have to disclose that there may be out of pocket costs associated with using them.

• The most sought after and experienced Realtors who work at a high volume typically have a minimum percentage commission they expect to make, and will make sure that they get paid that amount, regardless of if the seller covers it. This is a situation you may have some out of pocket cost to use a realtor. There are always young, hungry realtors without as much experience that are willing to accept whatever the seller offers as a commission if out of pocket cost is a concern to you.  Make sure if you sign a buyer broker agreement and want to make sure you are not of the hook for any out of pocket costs for using a realtor, you get an addendum stating the buyer agent realtor will accept whatever the "buyer agent commission" is offered on the MLS- otherwise you may be on the hook legally to cover the remainder cost if you agreed to a certain % and the seller did not cover the full cost.​ 

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When to consider not using a realtor?​

• Buying from family? Sometimes using outside representation can cause rifts in relationships.

• Already found the home, negotiated a price with the seller, and have purchased homes before and feel very comfortable with the process?  You could consider not using a relator and hire a contract lawyer to review the contract, but likely for the same price you could hire a realtor who will also help with writing the contract as well as renegotiating for repairs, appraisal issues, or contract discrepancies. Finding a home and negotiating price is only one part of what a realtor does.

• You want to purchase a for sale by owner and they will not pay a buyer agent commission.

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Benefits of using a realtor

• Little to no out of pocket cost- If you negotiate it correctly in the buyer broker agreement. 

• Save time- Average time a realtor spends on helping a client purchase a home varies greatly. On average it takes a client 6 weeks to find and purchase a home with a realtor. Here is a breakdown of what our average hours spent per client is. Keep in mind, realtors do this all day every day, it would likely take a novice 2-3X more time to do these tasks because they are not familiar with contracts, verbiage, and process. ​