Who Pays The Real Estate Agent?

TL;DR

In North Carolina, it is generally the seller who pays the real estate agent's commissions, but this can be altered in writing. Veterans Administration (VA) borrowers are not allowed to pay commissions to real estate agents.

Transcript

our office gets calls from buyers who for whatever reason say that they don't want to use a real estate agent in their transaction and they want to pay me to consult on the practical steps of the process but i have to tell these people you do not want to pay my hourly rate for this hey everybody i'm tiffany weber and i am a real estate attorney in ... Read More

Key Insights

• 👂 In North Carolina, the general rule is that sellers pay the commissions to both the listing agent and the selling agent.
• 👻 Military communities in North Carolina often have buyers using VA loans, and these borrowers are not allowed to pay commissions to real estate agents according to VA rules.
• ⛔ Sellers who refuse to pay the buyer's agent's commission may limit the number of potential buyers for their property.
• 💦 Buyers are recommended to work with real estate agents as they have the knowledge, experience, and resources to navigate the home buying process efficiently.
• 🤑 Real estate agents can save buyers time and money by handling practical steps and providing valuable advice.
• ❤️‍🩹 Buyers who try to consult with real estate attorneys or pay them to consult on the process may end up spending more and not receiving the comprehensive guidance that real estate agents can provide.
• 👪 Buyers should reach out to a real estate agent to save themselves the headache and time-consuming tasks of the home buying process.

Questions & Answers

Q: Who pays the real estate agent's commissions in North Carolina?

Generally, it is the seller who pays the real estate agent's commissions in North Carolina, as stated in the listing agreement. However, this can be changed through written agreements between the parties.

Q: Are VA borrowers allowed to pay commissions to real estate agents?

No, VA borrowers, especially in military communities, are not allowed to pay commissions to real estate agents. This is in line with the rules set by the Veterans Administration for VA-backed home loans.

Q: Why do sellers in military communities need to consider paying the buyer's agent's commission?

By refusing to pay the buyer's agent's commission, sellers in military communities limit the pool of potential buyers for their properties. Many VA borrowers rely on buyer's agents to help them navigate the home buying process, and not paying the commission may deter these buyers.

Q: Why should buyers consider using a real estate agent?

Buyers should work with real estate agents because they have the knowledge and experience to guide them through the complex home buying process. Real estate agents can save buyers time, money, and help them avoid headaches by handling practical steps and offering practical advice.

Summary & Key Takeaways

• In North Carolina, the seller typically pays the real estate agent's commissions as outlined in the listing agreement, but this can be changed through written agreements.

• VA borrowers in military communities cannot pay commissions to real estate agents.

• Sellers who refuse to pay the buyer's agent's commission limit the pool of potential buyers for their property.