When using a Buyers Agent – does the seller pay the commission fee or buyer?
After both the seller and the buyer have signed the final agreement, which occurs after inspections and renegotiations, your agent sets up the closing date with the title company and alerts the mortgage lender that the deal is going forward. The mortgage lender then does their appraisal and begins processing paperwork. All documents are forwarded to the title company for preparation. At closing, the buyer will bring the amount on the HUD-1 final settlement statement. Once the papers are signed, the title company disperses funds to the appropriate parties. The commission is paid out of the seller’s proceeds. I think part of the reason this is such a difficult concept to picture is that most of the real estate transaction happens behind the scenes in offices the buyer and seller never see. They see the house, they see the realtor, they see the mortgage lender before writing the contract but they never see the processing of the documents. That’s done in the back office of the mortgage len
Related Questions
- What if the Seller agrees to pay the Buyer Agent commission, but needs to increase the price to reflect the commission, and the Buyer knew about the lower price selling private?
- If an airline advertises slots on SlotTrade but then finds its own buyer/seller, does it have to pay the posting fee?
- Who will pay the Agents commission and the sellers closing cost?
