How can buyers' brokers receive compensation for their services?

Buyers' brokers can receive compensation for their services from either buyers or sellers. This flexibility is a key aspect of real estate transactions. When a buyer's broker is engaged, they typically enter into an agreement with the buyer who may compensate them directly through a retainer fee or commission. Additionally, if the buyer's broker is representing a buyer in a transaction, they might also receive a commission from the seller as part of the overall real estate commission structure.

Real estate transactions often involve negotiation where the commission may be split between the seller's broker and the buyer's broker, allowing both parties to receive compensation for their respective roles in facilitating the deal. This arrangement fosters collaboration and provides buyers with a dedicated representative to navigate the complexities of a transaction.

While a broker's compensation can come from various sources, it can't come from government commissions, as there’s no standard model in which the government compensates brokers for their services in real estate transactions. Thus, the correct understanding is that buyer's brokers indeed have the potential to be compensated by both buyers and sellers, reflecting the collaborative nature of real estate transactions.