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 this form during our first meeting.

• Signing the form does not enter you into any agreement with a REALTOR®; it’s simply a disclosure that states the types of relationships have been explained to you.

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

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.

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 “Buyers Agent”.
The Buyer’s 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.

Once a SELLER has hired me by signing a Listing Agreement, we then discuss particular in-depth details such as how to best prepare the property for market.

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

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

The service fee that compensates the company that represent the buyer and the company that represents the seller for their efforts is included in the final sales price of all homes listed in the MLS - Multiple Listing Service. The closing attorney will pay this fee on your behalf from the proceeds at closing and then distribute the net profit to the seller after any other applicable fees are paid.

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.
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!