Start at the moment of payment and work backward.
A standard settlement sheet (commonly called a HUD-1) has a line to show commission payments. It virtually always comes off the seller's side of the sheet (reducing the net they receive from the sale). Part of the payment goes to the buyer's agent and part to the seller's agent. (If it came off the buyer side it would increase the amount they would need to close which is tight for many buyers anyway so they might not even be able to buy the house.)
who exactly IS the buyer's agent or the seller's agent. Most consumers think their agent is the person taking them to see homes or the person who came and 'listed' their home. This is not exactly accurate. Their agent is the COMPANY that person representing the company works for. "Your" agent is an agent of the company that represents you. That is why the agent is a DUAL AGENT if they work for you even if they do not work for the other side but someone else in their company does.
How does the seller's agent get paid?
How does the buyer's agent get paid?
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