Your options in representation when writing an offer & how agents are paid


Seller’s Agent

A Seller’s Agent is the agent showing the property they have listed and you are interested in. They show the property to a potential buyer without having first signed a buyer agency contract with you. A Seller’s Agent is representing all of the individual sellers of the various properties you are viewing.

You are not the Seller’s Agent client. Prior to negotiating an offer, you will receive a Disclosure of Real Estate Agency that lists the fair treatment duties owed to you as a customer and indicates that the agent is representing the Sellers’ best interest.

Buyer’s Agent

If you work with a Buyer’s Agent, you become that agent’s client and are no longer a customer. They will negotiate in your best interest. You and the Buyer’s Agent sign a WB-36; Exclusive Buyer Agency Agreement that secures the relationship for a period of time*. The agreement specifically explains what duties the agent owes all parties and what duties we owe you, our client above and beyond that. *Our buyer agency agreement has an Easy Exit Clause.

Designated Agent

You can choose designated agency for the times when The Alvarado Group has the current listing on a home that a Buyer, under a Buyer Agency agreement with The Alvarado Group, is interested in and that secures the ability for the realtors within that transaction to continue to fulfill their duties representing the best interest of their clients.



Seller’s Agent

The Home Seller pays a commission to their listing broker based on a percentage of the selling price. The listing broker then splits this commission with the selling broker.

Buyer’s Agent

When you hire a Buyer’s Agent you are hiring a professional real estate agent to represent your best interest above all others and it is a professional service. There are three basic ways a buyer’s agent can be paid:

  1. The Alvarado Group can participate in the “MLS Offer of Cooperation” on listed properties. In accepting the MLS offer of compensation we accept whatever compensation the seller has agreed to pay per their
    listing agreement. This does not create an agency agreement between The Alvarado Group and the Seller – we still represent you, the Buyer. Payment in this manner typically covers all of our agreed
    upon fees. This is not always acceptable based on our company policy. The minimum commission accepted with buyer agency is 3%. If the Seller is offering less, we can correct that in the offer to purchase agreement (see #2).
  2. As a condition of the offer to purchase, we can instruct the Seller to pay The Alvarado Group on the Buyer’s behalf. This arrangement allows the Buyer Agency fee to be included in the transaction costs. This is most typically used with for sale by owner transactions and on discounted brokerage service listings.
  3.  The Buyer can pay The Alvarado Group directly upon the close of the sale. This rarely happens but is an option. All of the options are discussed at the consultation to ensure there is good understanding.

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