What To Know When Hiring a REALTOR®

by Texas REALTORS® Staff

No one is better at guiding you through a real estate transaction than a REALTOR®. Your REALTOR® is a trusted professional who can help you understand local conditions, find and market properties, negotiate, and keep your transaction on track through closing. Here are a few things to know when hiring a REALTOR®:

There Is No Standard Compensation

There are no rules that set the amount brokers charge. Each brokerage independently decides what to charge and what services to provide. Some brokers charge a commission, while others charge a flat fee, hourly fee, or fees for specific tasks.

Just like when you hire a lawyer, car mechanic, or architect, you get to shop around for the real estate brokerage that best suits you—the one that provides the services you want for a price you are willing to pay.

Some brokers may choose to negotiate fees and services with clients, while others may decide not to. It is an independent business decision up to each broker.

Expect a Written Agreement (Even if Just Looking)

Business relationships work best when all parties are on the same page. Whether you’re buying or selling, you and your REALTOR® will sign a written agreement that spells out what services the broker will provide and how you will be charged. Even if you’re just looking and a broker agrees to show you homes for no charge, you should expect a written agreement noting those details.

Cooperative Compensation Is an Option

Selling brokers are not required to share their compensation with the buyer’s broker (a process referred to as cooperative compensation). However, many homesellers and listing brokers do offer cooperative compensation to help market the home. Why? Most mortgage lenders don’t allow broker compensation to be added to home loans, and many buyers do not have the financial ability to pay their buyer’s broker out of pocket on top of the other costs of buying a home. Cooperative compensation can make a home more affordable to a greater number of buyers.

Your REALTOR® is the professional who can make your next move as smooth as possible. REALTORS® have the knowledge and skills to help you make informed decisions and reach your real estate goals.