Knowing the answers to these questions will help you be a better buyer.

Here are the answers to the top two questions I’ve been asked recently from curious buyers:

1. How much do you have to pay an agent to represent you when buying a home?

Typically, nothing. There are exceptions for people in certain situations, but 95% of the time buyers don’t have to pay an agent to help them buy a home. Sellers normally pay the commissions for both their agent and the buyer’s agent. 

2. What is earnest money? 

Earnest money is a deposit (typically 1% to 3% of the purchase price) a buyer makes when they agree to buy a home. This money is then held in the listing broker’s account. It can be submitted via check or through trust funds. Earnest money acts as a good-faith gesture to the seller that you’ll follow through with the purchase, and it stays in the listing broker’s account until closing. If you don’t follow through with the home purchase, the seller can sometimes keep the earnest money. 

“95% of the time buyers don’t have to pay an agent to help them buy a home.”

If you hire me to help you buy your next home, I’ll make sure that never happens. There are contingencies we can put on the property when you make an offer, and we can make sure your earnest money is protected if the deal falls apart. 

If you have questions about this, another real estate topic, or are thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’m happy to help.