Home Buyers in Ottawa – Who pays for your Realtor?
“Who pays for your Realtor when you buy a home?”. It’s a great question and one of the most common questions that my first-time home buyers ask.
The seller typically pays ALL of the realtor fees in a real estate transaction. The seller will pay the realtor fees out of the proceeds from the sale of their home.
As a homebuyer, you can choose any real estate agent to work for you at no expense. Their services are free to you, so you might as well use them to their fullest potential. Ask as many questions as you can. We look at homes everyday and our knowledge of the industry is invaluable.
It’s important to note that realtor fees are negotiable by the seller. As a home buyer, your realtor does not negotiate the realtor fees since the seller is paying for them. The fee for service negotiations happen between the listing agent and the home seller. Here in Ottawa, most full-service brokerages offer 2.5% of the purchase price to the brokerage representing the Buyer. What is typically negotiated is the fee for service for the selling agent when they bring in their own buyer.
Will you get a better deal by working with the selling agent? Not necessarily. If you’re into sports, working with the listing agent is like hiring the coach of the other team you’re playing. Find out more about “multiple representation” and what this means here.
Want to know more about buying a home? Click here for more information.
If you’re a first time homebuyer and you’re thinking about taking those first steps to homeownership, give me a call!