Do Realtors® Have A Finder’s Fee?

I’ve had quite a few home buyers ask me lately what the finder’s fee would be if I helped them find a home to purchase. Of course I tell them “There is no finder’s fee, you don’t have to pay me anything.” Inevitably they look at me and ask “What’s the catch?”
Since most of my buyers are international investors I understand their concern. When this happened the other day I started thinking about it and realized that the majority of the public probably knows that Realtors® are paid on commissions.

What they might not know is how a Realtor® working as a buy’s agent is paid. I understand where it could be confusing and I wanted to clear it up for you, the home buyer. When a Realtor® lists a property for sale he inputs the property into the Multiple Listing Service. The MLS allows other Realtors® to help sell the property.

The listing agent will offer a cooperative-brokerage fee to any buy’s agent who finds a buyer for the property. For example; if a seller hires a Realtor® to sell their home, the listing agent will charge the seller a commission. The listing agent will then put the listing in the MLS and offer a co-broke fee.

When a buyer’s agent brings a buyer into the deal and the sale closes the listing agent will pay that cooperating brokerage the fee offered in the MLS. In short, the buyer does not pay a Realtor® to help them find a home. The seller actually ends up paying both Realtors®. What a great deal, you get to hire a real estate professional to help you find a home and you don’t have to pay them a dime! Yet another reason to buy a Central Florida investment home.



Image courtesy of ME. That's my little boy finding out it's free!!!