First Time Home Buyer: How Do Realtors Get Paid?

What Orange County Families Should Know Before Buying A Home

If you’re a first time home buyer in Orange County, there’s a good chance you’ve thought of this question: do I have to pay my realtor out of pocket? It’s one of the most misunderstood (and unknown) parts of buying a home. 

How Realtor Commission Actually Works in Orange County

Most people assume that hiring a buyer’s agent means an extra bill on top of an already expensive home purchase. In most cases, that’s not how it works. 

When I represent a buyer, I negotiate for the seller to cover my full commission as part of the transaction. This means:

• You don’t pay me directly out of pocket to help you buy a home
• The commission is built into the overall sale and paid for by THE SELLER at closing
• As a first time buyer, you can work with an experienced local agent without upfront agent fees

This can of course vary on the specific home, the offer, and specific situation. Every deal in Orange County’s real estate market is a little different. But generally speaking, buyers here shouldn’t expect to pay their agent’s commission directly. 

I always walk my clients through this early on, so it’s clear from day one exactly how the process works. 

Why This Matters for Orange County Families

This can be a big relief for families budgeting for a down payment, closing costs and moving expenses. It means the guidance, negotiation and advocacy you get from a knowledgeable local realtor doesn’t have to come at an extra cost to you as the buyer.  

This is one of the reasons why I always encourage buyers in Orange County to work with a buyer’s agent instead of working with a home’s listing agent (whose job is to protect the seller and get the seller the most money possible). You get someone who is negotiating for your family’s best interests, often without adding to your out of pocket costs. 

What a Family Focused Realtor Actually Does for That Commission

In my experience working with Orange County families, a good buyer’s agent handles things like:

• Helping you understand which neighborhoods actually fit your family’s lifestyle, budget and priorities
• Writing and negotiating competitive offers in a fast moving market like OC
• Coordinating inspections, timelines and paperwork so that nothing falls through the cracks
• Advocating for repair credits or price adjustments when issues come up
• Being available to answer questions throughout the entire process – helping you fully understand every aspect of the purchase