You can be a REALTOR®’s customer or client.

DURING OUR CONSULTATION WE WILL REVIEW A FORM DEFINING THESE RELATIONSHIPS AND YOU WILL BE ASKED TO CHOOSE WHICH RELATIONSHIP STATUS YOU PREFER.

• The Mississippi Real Estate Commission requires that we review a form called the “Working With a Real Estate Broker” during our first meeting. This is a disclosure which discusses the roles and duties of agents, as well as buyers.

• BEFORE you tour a home, the National Association of REALTORS® requires that you sign a Buyer Agency Agreement form. Review of this form will help you understand the options for how your broker may receive compensation, as well as any out of pocket costs you may be responsible for that are associated with the professional services performed by your Buyer Agent.

“How do I hire you, and how do you get paid?”

A BUYER hires ONE REALTOR® to represent them throughout the entire buying process: from pre-qualification, selection of possible homes to tour, drafting of purchase offers and terms, negotiations of terms and repairs, and finalization of the contract and purchase.
This agent is the “Buyer Agent”.
The Buyer Agent is hired by signing a Buyer Agency Agreement. This is what makes the buyer a client.
This agreement allows the REALTOR® to represent the buyer on all properties whether they are listed with an agent, are for sale by owner, or are currently under construction and are for sale by a builder.
The Buyer’s Agent is the only agent allowed to represent the buyer for the period of time agreed to between the agent and the client.

A SELLER hires ONE REALTOR® to represent them as their seller’s agent throughout the entire selling process: from preparation of the home for listing, negotiations of offers and repairs, to finalization of the contract and sale.
This agent is the “Listing Agent” or “Sellers Agent”.
The Listing Agent is hired by signing a Listing Agreement. This is what makes the seller a client.
The Listing Agent puts their sign in the yard and is the only agent allowed to represent the seller for the period of time agreed to between the agent and the client.

Once a BUYER has hired me by signing a Buyer Agency Agreement, I can advise the Buyer about things that may affect their property value or ability to reasonably enjoy the property in question. Without a Buyers Agency Agreement, I am not allowed to unlock the door for you.
I cannot legally represent you and offer my experience and advice without this signed agreement.

How REALTORS® get paid is confusing.
Let me try and clear it up.

The fees that compensate the Buyer’s brokerage and the Seller’s Brokerage for their time and professional services may be included in the list price of the homes listed in the MLS - Multiple Listing Service that you will tour: however, this information is no longer available in the MLS and Buyer Agents must ask each Listing Agent on a case-by-case basis if the Seller is providing Buyer Agent compensation.

As your Buyer Agent, I will make every effort to have the Realty Executives’ professional service fee covered by the Seller. It is important that we discuss all of the possible avenues for Buyer Agent compensation, how these options may change during the course of the transaction, and what you ultimate out-of-pocket “broker closing costs” might be.

The “service fee” is sometimes called a “brokerage fee”.
Although It is sometimes called a “commission”this can be misleading
because it is paid directly to the agent’s broker - not the agent.
After closing, the broker then pays the agent a portion of this.

Agents work under a managing broker, even if they also have a broker’s license. The broker isn’t their “boss” in the traditional sense of the word because REALTORS® are self-employed; however, brokers do distribute a portion of the service fee to the agent after a sale. Agents are responsible for covering all expenses related to running their business like advertising, supplies, and gas.

Hopefully this helps clear up a commonly misunderstood aspect of working with a REALTOR®.

Still have questions? I’d love to meet with you!