Who Really pays the Real Estate Commission?

Published By: on August 4th, 2011 in Category Nanaimo Real Estate News
Published By: on August 4th, 2011 in Category Nanaimo Real Estate News

It is often said that Buyers Agent’s services are free. It is true that  buyers do not pay anything for their Realtor’s services, up front, but when a deal is made the buyer’s Realtor will usually receive half of the commission from the listing Realtor. Who comes up with the money for the commission? The standard answer is The Sellers. However, when you stop and think about about it, the only people putting money on the table are The Buyers, so who is really paying the commission? Truly, the cost of the commission is built into the listing price. The cost of the Realtor’s commission was rolled into the price of the house when you bought and it is rolled into the price of the house when you sell it. That’s how our industry with it’s fantastic MLS system is funded.