Discussing finances can be a complex and sometimes stressful endeavor. Delving into the intricacies of how you're compensated in real estate can make the conversation even more challenging. Take a look at this informative animation for a user-friendly method of explaining your payment structure. Feel free to share it widely and use it with clients who may benefit from a visual guide. The National Association of REALTORS® also encourages the use of buyer representation agreements to solidify expectations regarding agent compensation and services.

Here are some crucial points to emphasize when discussing your compensation with clients:

1. Compensation is open to negotiation. Buyers and sellers can discuss and agree on the compensation terms at the beginning of the homebuying process or at any point prior to the transaction's conclusion.

2. Costs are transparent for both buyers and sellers. Within the written listing agreement, sellers determine the fee they're willing to pay for their agent's services and specify how much of that fee goes to the real estate agent responsible for finding the buyer. Buyer's agents inform their clients about the portion of their compensation derived from the total sale proceeds. At the closing, both sellers and buyers are reminded of the exact amount each agent is receiving and from whom.