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Hi Steve from Wilhelmy Homes
Thanks for stopping by the site
I really do appreciate it
I'd like to talk with you today about something
That is confusing to some folks
And that's the compensation of the buyer's agent
Or what is known as in the industry a coop agent
Let me explain where that came from
A long time ago there weren't as many real estate transactions
And the real estate agents were handling the entire transactions
And that worked out for a while
But what the market found out is that the market kept getting bigger and agents started
to specialize
In working with buyers or working in specific areas they know really well
They started bringing buyers together when there are listings
And then they would go back to the listing agents
And ask them if they would consider paying a part of their commission
If they brought a buyer to a property
This is the really simple version of how this happened
But this where this whole cooperation begins
Actually this is something that started in the Minneapolis area across the nation
It's called the cooperating broker
As it is right now
I can't speak for the entire country
But the vast majority of it
As an agent once we work for a brokerage
And we are part of the MN board
In our case we agree to cooperate with any agent
That brings buyers to our properties
And part of that commission is shared from the listing agent
So the buyer's agents gets compensated
And what we've seen as the outcome of that
Is people who are purchasing and selling real estate
End up getting a much better deal in the long run
Because they have their properties available to more buyers
And they find the right buyer so they get a higher price
And from the buying side
They get to see more of a pool of houses
What started out as maybe a generalist thing
And what ended up happening
Is a huge benefit to the consumer
By being able to have two different agents in the transaction
So I know I have mentioned this before but as a buyer's agent
My fees get paid by the cooperating agent
Or the listing broker
And the seller pays the same amount to the listing agent
Whether there is a separate buyer's agent or not
If you have any questions about this topic
Or any other real estate topics
Please feel free to give me us a call at 612-619-2638
Or send us an email at Steve@WilhelmyHomes.com
Thanks again for stopping by
And have a great day