In Wisconsin, the buyer’s agent typically gets paid through the commission that is negotiated between the seller and the listing agent. Here’s how it typically works:
- Commission Structure:
- When a seller decides to list their property for sale, they sign a listing agreement with a real estate agent (the listing agent). In this agreement, the seller agrees to pay a commission, which is typically a percentage of the final sale price, to the listing agent.
- The listing agent then offers a portion of this commission (usually half) as a cooperating commission to the buyer’s agent who brings a qualified buyer to the transaction.
- Cooperating Commission:
- The cooperating commission is typically split between the listing agent’s brokerage and the buyer’s agent’s brokerage. Each brokerage may have its own policies on how commissions are distributed among agents.
- Paid at Closing:
- The buyer’s agent’s commission is typically paid at closing, out of the proceeds of the sale. This means that the commission amount is deducted from the seller’s proceeds before they receive their net proceeds from the sale.
- No Direct Payment by Buyer:
- In most cases, the buyer does not directly pay their agent. Instead, the buyer’s agent’s commission is paid by the seller as part of the overall transaction costs.
- Negotiation:
- The commission structure and amount are negotiable between the seller and their listing agent. However, it’s important to note that offering a competitive commission to the buyer’s agent can incentivize more agents to show the property to potential buyers.
It’s essential for both buyers and sellers to understand how commissions work in real estate transactions, as it can impact the overall cost and outcome of the transaction. If you have specific questions about commission structures or payment arrangements in Wisconsin, it’s best to consult with a local real estate professional who can provide personalized advice based on your situation.