Often times, especially if you are a first time buyer, it can be intimidating to use a real estate agent. You are unsure how much it will cost, and what sort of negative influence they might have over you. And as a seller, it seems even stranger -- how can they be so expensive?

Here's the long and short of it: as a buyer, using a real estate agent is free (unless for some reason, you sign a contract saying you want to pay them), and is paid on commission only. If they find a home for you that you close on, half of the seller's negotiated commission price goes to the seller's agent,and it doesn't cost you a thing.

On the sellers side, you are paying for both agents. How much? It is completely negotiable, but it is typically 6% total (Los Angeles commercial real estate, however, averages 4-5%).

It is really that simple. There are some unscrupulous real estate agents who will try to make you sign an agreement that differs from this standard, at which point, you move on to the next. But for the most part, it is a very simple industry.