A question that is asked often in real estate is…
“Do I have to pay my Realtor to show me houses that are listed by another Realtor?”
One client asks, “There are several real estate companies in the city we are moving to, and we have found a Realtor we really like working with. However, there are several houses listed by other companies we are interested in seeing. Do I have to go to each company to see those houses?”
If the home is listed on the multiple listings service, ANY Realtor can show the property. An EXCLUSIVE listing is one where the company that listed it can only show and sell it, but those listings are usually very rare and exclusive only for a short time.
You will never be required to pay a Realtor to “show you the property”. Realtors make their commission when the home sells, and that commission is almost always fully paid by the seller of the home.
As we analyze a typical real estate commission, we will use a six percent commission on a $100,000 property, or $6,000. A common misconception is that the agent who lists the property gets the entire amount. This is not true. The reason that the MLS works so well is that the listing and selling Realtors share the commission.
In a typical transaction, there is a Realtor who represents the buyer and a Realtor representing the seller. They usually split the commission 50/50, although this amount may change depending on the listing agent. In an equal split of a $6,000 commission, each agent would receive $3,000.
For example, if I listed your property today, I would go to the MLS site, enter all the information about your property, and offer to split the commission with any Realtor who brings in a buyer. In other words, any Realtor can show and sell another Realtor’s property.
Realtors are usually able to sell a home faster than someone trying to sell their home on their own. Realtors work with one another, causing their properties to sell more quickly. For this reason, it is beneficial to use an agent when searching for properties. They have tools and resources to locate your ideal home. Some properties you may never find without the help of a Realtor.
As a buyer, the services of a Realtor will cost you nothing. In almost every scenario, the seller of the home will pay the Realtor his/her commission.
