Good Question! More than 98% of Buyers use a Realtor when they want to buy property. According to the National Association of Realtors, only 8% did not use a Realtor when buying a home last year.
You might ask “Why are Realtors who work with buyers paid a portion of the commission?”Realtors are educated professionals who know the market and know how to represent their client’s best interests. They spend many hundreds of hours educating themselves in this area. A good buyer’s agent will begin by learning their clients’ wants and needs, lifestyle and also their financial capabilities. After they have a good idea of what the buyer is looking for, they will start to search the Internet and decide which properties they will show them. They will network with other Realtors asking if they have any “matching properties” soon to come on the market. They will also take neighborhoods as well as lifestyle into consideration. If funding is needed, they also help their client get pre-approved for a loan with a lender.
Besides taking their clients to see various properties, they also advise their clients on areas, pricing and both pros and cons they may not be aware of. A professional Realtor is skilled at writing offers for their clients, and they will negotiate for their clients once the offer has been sent to the seller. You would be amazed of all the mounds of paperwork that needs to be tended to after a property goes into escrow! Realtors work hard behind the scenes to hold the sale together. You would be shocked of how many sales fall thru when there is no Realtor involved.
If commissions were not split between the listing agent who markets the property, and the buyers agents who represent buyers……few homes would be sold. These commissions have been split between the listing agent and the buyer’s agent since 1908.
If you deal directly with the Listing agent and you buy the home thru the Listing agent, that is called Dual Agency……meaning the Realtor got compensated as both a Listing Agent and Buyers Agent because they represented both the buyer and seller. In our area a common commission paid by the seller is 6%. Each side receives 3% and most agents then split that 3% with their Brokers. Please keep in mind that commissions are “built in costs”, just like they are when you buy any product on the market. There are many “hidden” costs in everything you buy! Today when I was searching properties on the Internet, I came across one property offering 3.5% commission to the buyer’s agent, another one at 4% and a seller offering the buyer’s agent a $5000 bonus if they would bring them a buyer!
Hope this helps explain why you compensate Buyers Agents in real estate. If you choose not to offer a compensation to the buyer’s agent, Realtors representing buyers would never tell their clients about your home and your home would have very few showings, if any.
Looking for Paradise in CA? Just Give Me a Call Nancy Hankin - Palm Springs Realtor Palm Springs CA Direct (760) 861-5118
Old Fashioned Service Using New Fashioned Technology
I moved to beautiful Palm Springs, California to the desert, known as the Coachella Valley, from Milwaukee, WI in 1992. I wanted to be surrounded by sunshine, wonderful year-round weather and expansive mountain views. And that's exactly what I got! Now I specialize in helping others relocate and find their own special Home in Palm Springs, a true Paradise.
Most folks think of this area as Palm Springs, however, the Valley actually consists of (9) cities, each with their own personality: Palm Springs, Palm Desert, Cathedral City, Rancho Mirage, Indian Wells, La Quinta, Indio, Desert Hot Springs and Coachella.
I've been in Real Estate Sales, Marketing, Public Relations and Administrative work my entire career, which began in 1965. Being a Realtor is more than a business for me, it's a true passion and my client's interests are my main concern. I'm detail oriented, organized and I have a vast knowledge of the desert and the properties within the Valley. Unlike many Realtors who only specialize in one or two areas in Coachella Valley, I've SOLD Real Estate Properties in all of the communities of Coachella Valley.
I am more than just a Realtor. I have also been named one of less than 50,000 Realtors nationwide who is a Certified Residential Specialist (CRS) and one of less than 15,000 Realtors nationwide who is a Senior Real Estate Specialist (SRES). I am also a Real Estate Broker and e-Pro Certified, which means that I have an excellent understanding of technology as it applies to real estate on the Internet.
Due to my extraordinary production with RE/MAX over the years, I have achieved many top honors. I am a member of the Prestigious 100% Club, the Platinum Club and a Hall of Fame Member. Only 10% of the Realtors with RE/MAX in the California/Hawaii Region have earned this Platinum Club recognition.
Many of my clients are now friends, and they have referred both their family and friends to me. They know I'll take very good care of them from the beginning of our relationship, to after it's closed, and beyond that! I don't go away. I'm always available and eager to help in any way I can - before, during and after the sale! And to all those who continue to Refer Clients to me, a great deal of my work is from folks just like you, and it's greatly appreciated.
Education:
Majored in Journalism at the University of Wisconsin-Milwaukee with an emphasis on Sales, Public Relations and Marketing
Completed Courses in Real Estate Principles, Property Management, Office Administration, Agency and Ethics, Fair Housing, Trust Accounts, Real Estate Practice, Basic Appraisals and Real Estate Appraisals, Real Estate Finance and Real Estate Economics.
Completed courses in Sales, Sales Management and Board Development; Organizational Strategic Planning, Management Training and Fund Raising
Interests: My children, grandchildren, golfing, reading, writing, bridge, socializing....and trying to make a more positive difference in the world we live in.
Specializing In: California Vacation Homes, Relocation, Retirement Homes & Communities, New Home Sales, Golf Course Communities, Single Family Homes, Condominiums, Estates, Ranches, Land Sales.
From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.
and needs, lifestyle and also their financial capabilities. After they have a good idea of what the buyer is looking for, they will start to search the Internet and decide which properties they will show them. They will network with other Realtors asking if they have any “matching properties” soon to come on the market. They will also take neighborhoods as well as lifestyle into consideration. If funding is needed, they also help their client get pre-approved for a loan with a lender.
In our area a common commission paid by the seller is 6%. Each side receives 3% and most agents then split that 3% with their Brokers. Please keep in mind that commissions are “built in costs”, just like they are when you buy any product on the market. There are many “hidden” costs in everything you buy! Today when I was searching properties on the Internet, I came across one property offering 3.5% commission to the buyer’s agent, another one at 4% and a seller offering the buyer’s agent a $5000 bonus if they would bring them a buyer!
