Two Minutes on Realtors- When Renting Real Estate

Yesterday, I mentioned buying real estate, and the different agents. It's a little bit different for renting.

There are still buyer's agents and seller's agents, but unless you specifically tell an agent that you want them to work for you (as a buyer), they are probably working for the seller, and so you should take that into account when evaluating what they are saying.

The typical real estate commission for a purchase is 6%, to be split evenly between the two agents. In the case of a rental, the commission is usually one month's rent, to be split between the two agents. Depending on the area and the market, the buyer may be on the hook for some or all of that commission. Do not pay the commission up front- some unscrupulous agents will ask you to pay them most of their money up front with the promise that they will then take you around to some properties (or that they will give you access to their exclusive listings). It's hogwash- there are plenty of agents who will help you out without taking money up front. No matter who you speak to, make sure you ask about the commission before you get interested in a property.