If you are looking to buy a home and hire a Realtor, you might wonder who would pay the Realtor’s fee. The answer is that when someone sells a home, they give a set percentage of the price of the home’s sale to their Realtor. The Realtor puts the home on the MLS (multiple listing service- which is utahrealestate.com in Utah) and offer compensation to an agent who will bring a qualified buyer to the home.
That Realtor will then split their fee with the Realtor who represents that buyer, because it is very difficult to represent both the buyer and seller in a negotiation and be perfectly fair to both sides. It is in the client’s best interest to have a Realtor who will aggressively negotiate on their behalf and not be overly concerned with the other party.
Now, some say that this a flawed system, as it encourages the buyer’s agent to want a higher price and not aggressively negotiate for their client, but the difference in fees between a $320,000 sale and a $300,000 sale is only $600. The chances of someone whose Realtor has saved them $20,000 on their purchase and then recommending that Realtor to a friend, however, is quite high. Any real estate agent worth their salt would rather be in the latter party, as a Realtor who saved their client money, represented them well, and would be recommendable by their client, than to make a measly $600 more on a single transaction.
In fact, my business is entirely referral based. My previous clients use my services again and again and my new clients are typically friends or family of past clients who were referred to me.
If you want to know why others would be willing to refer friends and family my way, feel free to shoot me a message and I can offer you a one hour free consult of what I offer my clients.