It’s generally a good idea for home buyers in Oregon to work with an experienced real estate agent. This is especially true if you’re a first-time buyer, and or purchasing a home in an area you’re not familiar with.
But who pays the real estate agent commissions in Oregon? While it’s negotiable, it is usually the seller who pays these fees.
Sellers Typically Pay Real Estate Agent Fees
In Oregon, as in most states, the person(s) selling the home typically pays both real estate agent commissions. The money for this comes out of the proceeds from the sale — at least in those cases where the seller is making a profit.
That’s usually how it works. But like many aspects of the real estate process, this is all negotiable. These and other details will be spelled out within the real estate purchase agreement / contract.
Home buyers can benefit from this customary practice. When you buy a home, you can get professional help from a licensed agent without paying for it out of pocket. So there’s really no reason for buyers to “fly solo.”
How Much Are These Commissions in Oregon?
This leads to another common question among home buyers and sellers. How much are real estate agent commissions in Oregon?
This too can vary. The traditional and customary commission for a real estate transaction is 6% of the purchase price. This amount is usually split between the buyer’s and seller’s agents, with each receiving 3%.
The commission structure can vary depending on the agent’s (or agency’s) business model and the specific services they provide. The customary 6% figure mentioned above is often used when the agents are providing comprehensive services for their clients. Some real estate companies provide more limited services in exchange for lower commissions / fees.
Real estate market conditions can also affect these fees. In a sluggish housing market where sales are few and far between, agents might be more inclined to offer reduced fees to attract clients. In a more active market, these competitive commissions might become more of a rarity.
Typical Services Provided by a Buyer’s Agent
So that answers the primary question: Who pays real estate agent commissions in Oregon? In a typical transaction, it’s usually the seller who pays these fees. But it can negotiated.
What about the services you receive, as a buyer? What does a buyer’s real estate agent do for his or her clients?
Here are some of the primary services they provide:
- Find a suitable home by using MLS, networking, major listing sites, etc.
- Evaluate the seller’s asking price based on recent sales and market data.
- Advise the buyer on how much to offer, what contingencies to include, etc.
- Negotiate with the seller over price and other terms of the sale.
- Ensure that all paperwork is completed and distributed to third parties.
- Make sure that everything remains on track for the scheduled closing.
This is a basic overview of the services provided by real estate agents in Oregon. Some agents might offer additional services that are not shown above, or fewer services in the case of discount brokerages. Buyers should find out exactly what services are going to be provided, before deciding to work with a particular agent.