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Started By
Message
Strategies for buying a house USING the listing agent ....
Posted on 11/28/11 at 7:46 pm
Posted on 11/28/11 at 7:46 pm
I'm thinking about buying a house .... so you know where I'm coming from, I'm from the school of thinking that real estate agents are overpaid ... I'm wondering about different strategies of going directly through the listing agent.... Found an interesting house this evening .... Whats wrong with this logic:
Going through the listing agent directly ....So I assume they stand to make 6% (3%+3%)..... What if at the end of negotiations, when I decide I don't want budge any more and the price isn't as low as I was hoping, what do you think about trying to then get the agent to come off their 6% some(1 or 2%) to help make the deal happen ? can't I ask the agent to give up some of their 12-15k commission to help make the deal happen ?
Do brokers allow their agents to do this ?
Also, when asking about the property, is the agent required by law to tell me everything they know...like when I ask them questions such as :
What are the some past prospective buyers' reasons for not making an offer?
How many offers have been made on the house ?
Why didn't the deal work out ?
I have knowledge about lots of foundation problems (lots needed cable locks) in the area, would the agent offer up the knowledge of the extent of any/all foundation problems ? ... there were big cracks in the patio...
What are the downsides of going directly through a listing agent ?
Thanks for yout thoughts and any other advice you can offer me.
Going through the listing agent directly ....So I assume they stand to make 6% (3%+3%)..... What if at the end of negotiations, when I decide I don't want budge any more and the price isn't as low as I was hoping, what do you think about trying to then get the agent to come off their 6% some(1 or 2%) to help make the deal happen ? can't I ask the agent to give up some of their 12-15k commission to help make the deal happen ?
Do brokers allow their agents to do this ?
Also, when asking about the property, is the agent required by law to tell me everything they know...like when I ask them questions such as :
What are the some past prospective buyers' reasons for not making an offer?
How many offers have been made on the house ?
Why didn't the deal work out ?
I have knowledge about lots of foundation problems (lots needed cable locks) in the area, would the agent offer up the knowledge of the extent of any/all foundation problems ? ... there were big cracks in the patio...
What are the downsides of going directly through a listing agent ?
Thanks for yout thoughts and any other advice you can offer me.
This post was edited on 11/28/11 at 8:24 pm
6
Posted on 11/28/11 at 8:00 pm to Zilla
You'd probably be more successful if you had negotiated that with the agent before you had settled on a particular property.
Posted on 11/28/11 at 8:20 pm to Layabout
I'm not following you.... I'm the buyer
Posted on 11/28/11 at 8:39 pm to Zilla
quote:
... there were big cracks in the patio...
patio isn't part of the foundation by the way
Also, you won't have access to the listing agent, you will be talking to your agent (the buyer's agent) so you won't have the opportunity to even present this deal to him/her.
Even if you did snake your way into presenting it, you would be laughed at more than likely.
quote:
can't I ask the agent to give up some of their 12-15k
That would mean a house in the $800K to $1M range. If you can afford that, why are you nickel and diming the agent? Remember, the agent only gets 1.5% of the deal, before expenses.
Posted on 11/28/11 at 9:02 pm to Zilla
As a real estate agent, I've never, nor any other agent I know of, thought of this scenario. Going reevaluate my career.
On a different note, it youre ever involved in a serious lawsuit, maybe a few hundred thousand dollars either way (the price of a house lets say) lawyers are way overpaid and you can easily represent yourself in court.
On a different note, it youre ever involved in a serious lawsuit, maybe a few hundred thousand dollars either way (the price of a house lets say) lawyers are way overpaid and you can easily represent yourself in court.
Posted on 11/28/11 at 9:07 pm to ItNeverRains
quote:
As a real estate agent, I've never, nor any other agent I know of, thought of this scenario.
is it really that far fetched though ? Do you really think it's fair that you get 6% ? That inflates the price of the house, why should I have to pay that ? My interest is to pay the least amount of money as possible, so why shouldn't I explore all possibilities of doing just that....
quote:
On a different note, it youre ever involved in a serious lawsuit, maybe a few hundred thousand dollars either way (the price of a house lets say) lawyers are way overpaid and you can easily represent yourself in court.
Understandably that is your take, but I don't want this thread to be about whether you should earn 15 thousand dollars for selling a house or whether your value should be compared to that of an attorney's.
Any advice on using the listing agent to represent me (the buyer)?... If you'd rather not, I understand
This post was edited on 11/28/11 at 9:10 pm
Posted on 11/28/11 at 9:12 pm to MikeBRLA
quote:
patio isn't part of the foundation by the way
I know, but isn't that a sign of possible foundation problems sometimes ?
quote:
Also, you won't have access to the listing agent, you will be talking to your agent (the buyer's agent) so you won't have the opportunity to even present this deal to him/her.
I can't just call the listing agent and ask them to represent me as well ?
quote:
That would mean a house in the $800K to $1M range. If you can afford that, why are you nickel and diming the agent? Remember, the agent only gets 1.5% of the deal, before expenses.
well maybe I'm confused, I thought agents typically got 3% on each side of the transaction, and when the listing agent sells to a buyer that they also represent they get the full 6% ? is that not true ?
quote:
MikeBRLA
you own the fsbobr.com site right ?
This post was edited on 11/28/11 at 9:15 pm
Posted on 11/28/11 at 9:19 pm to Zilla
quote:
I thought agents typically got 3% on each side of the transaction, and when the listing agent sells to a buyer that they also represent they get the full 6% ? is that not true ?
It is true unless you tell the agent you will only give them 1.5% or nothing at all. There is a conflict of interest because if you use the listing agent they can tell the seller things that should only be between you and your agent. Go for it if you found the house you want.
Posted on 11/28/11 at 9:30 pm to StrangeBrew
quote:
It is true unless you tell the agent you will only give them 1.5% or nothing at all
ok, well thats what I thought....so when they make you sign that paper when they "officially" become your agent, before they start talking house, is that where the terms have to be done ? Is it impossible to get them to change that later on in order to make a deal happen ?
This post was edited on 11/28/11 at 9:32 pm
Posted on 11/28/11 at 9:31 pm to StrangeBrew
quote:
There is a conflict of interest because if you use the listing agent they can tell the seller things that should only be between you and your agent
right, but doesn't that work both ways ? besides, most of the times the agents are doing too much talking anyway
This post was edited on 11/28/11 at 9:35 pm
Posted on 11/28/11 at 10:05 pm to StrangeBrew
quote:
It is true unless you tell the agent you will only give them 1.5% or nothing at all.
Buyers don't pay the commission, sellers do. A buyer cannot negotiate the commission with any agent becasue commisions are agreed upon by the listing agent/seller. The listing agent then decides how much commission they want to offer to a selling agent. You want to save money, get a real estate license and act as your own agent. You'll come out way ahead even if you never use your license again.
Posted on 11/28/11 at 10:18 pm to rhodester
quote:
Buyers don't pay the commission, sellers do.
To the OP. Yes go to the listing agent. Tell him that you want to purchase the home without an agent and you will give him a fee to handle the paperwork on your side. Then negotiate with the seller for a lower price on the home by saving ~2%.
Posted on 11/28/11 at 10:24 pm to C
quote:
To the OP. Yes go to the listing agent. Tell him that you want to purchase the home without an agent and you will give him a fee to handle the paperwork on your side. Then negotiate with the seller for a lower price on the home by saving ~2%.
thank C, so it's not that far fetched then .... what do you think is a fair amount for the paperwork ?
How common do you think this is ? Who would "open" the house for me ?
This post was edited on 11/28/11 at 10:36 pm
Posted on 11/28/11 at 10:37 pm to Zilla
quote:
How common do you think this is
Not much at all because the fee is hidden from you. As the agents in this thread have tried to lie saying "its paid by the seller." So you have to find someone who actually willing to work with you on it. Remember it's a racket that works off of not having any kinks in the armor. if it was a free market then no way would you be charged such a large % for their minimal efforts. So that's why you need to go to the agent first to find one that will work with you. If you get a house first then you might not find someone willing to go against the party line.
This post was edited on 11/28/11 at 10:38 pm
Posted on 11/28/11 at 11:34 pm to C
won't I always have to "find the house" before I can "find the agent" though ?
Posted on 11/29/11 at 12:18 am to C
quote:
Not much at all because the fee is hidden from you. As the agents in this thread have tried to lie saying "its paid by the seller." So you have to find someone who actually willing to work with you on it. Remember it's a racket that works off of not having any kinks in the armor. if it was a free market then no way would you be charged such a large % for their minimal efforts. So that's why you need to go to the agent first to find one that will work with you. If you get a house first then you might not find someone willing to go against the party line.
C, laying down the troof in this thread.
To the OP - do whatever you can to get a good deal for yourself. Don't fall for any of these garbage talking points that this insular cast of agent homers has tried to sell you.
Posted on 11/29/11 at 12:57 am to ItNeverRains
Lawyers are definitely overpaid, not sure how this is an argument.
Posted on 11/29/11 at 9:31 am to kfizzle85
Wow - it boggles the mind to read some of the inaccuracies here. And yet everyone thinks they are real estate geniuses. It's amazing that agents even exist anymore and make a living at it! 
Listing agent works for seller and negotiates the commission with seller. HOW seller pays the agent (by raising the home price or not) is irrelevant. Seller pays commissions out of seller proceeds at closing. Think of it however you want to, but seller pays it and that is FACT. The market won't bear an overly priced home just so a seller can "include" the commissions in the listing price.
If Buyer wants listing agent to be his agent as well, that is called DUAL AGENCY. In this scenario, agent CANNOT divulge information that is confidential (ie-how much seller would take for the house, or how much buyer is willing to pay) to either party. BUT AGENT MUST divulge all known, pertinent FACTS about the property to all parties (ie-known foundation issues, etc).
If buyer just wants to submit offer on his own behalf, listing agent can answer questions and perform "ministerial acts" for buyer without representing buyer. In this case, agent would not offer advice or agent opinions to buyer.
Go to LA Real Estate Commission Site for all the information you could want on this.
If agent has already negotiated his commission with seller, and you are buyer (whether the agent is dual agent or not) why would he want to forfeit part of his already agreed upon commission to you?
The reality is that SOMETIMES in order to get a deal done, agents will offer some of their commission towards the deal. It must be approved by their broker and all parties to do so. It happens, but it depends on how desperate everyone is to make that particular deal work.
You would be best served by letting the agent decide/come to his own conclusion to offer part of his commission to get the deal closed, rather than asking for his help in the transaction, and then asking him to give you some of his earned money at the end of the day.
Listing agent works for seller and negotiates the commission with seller. HOW seller pays the agent (by raising the home price or not) is irrelevant. Seller pays commissions out of seller proceeds at closing. Think of it however you want to, but seller pays it and that is FACT. The market won't bear an overly priced home just so a seller can "include" the commissions in the listing price.
If Buyer wants listing agent to be his agent as well, that is called DUAL AGENCY. In this scenario, agent CANNOT divulge information that is confidential (ie-how much seller would take for the house, or how much buyer is willing to pay) to either party. BUT AGENT MUST divulge all known, pertinent FACTS about the property to all parties (ie-known foundation issues, etc).
If buyer just wants to submit offer on his own behalf, listing agent can answer questions and perform "ministerial acts" for buyer without representing buyer. In this case, agent would not offer advice or agent opinions to buyer.
Go to LA Real Estate Commission Site for all the information you could want on this.
If agent has already negotiated his commission with seller, and you are buyer (whether the agent is dual agent or not) why would he want to forfeit part of his already agreed upon commission to you?
The reality is that SOMETIMES in order to get a deal done, agents will offer some of their commission towards the deal. It must be approved by their broker and all parties to do so. It happens, but it depends on how desperate everyone is to make that particular deal work.
You would be best served by letting the agent decide/come to his own conclusion to offer part of his commission to get the deal closed, rather than asking for his help in the transaction, and then asking him to give you some of his earned money at the end of the day.
This post was edited on 11/29/11 at 9:33 am
Posted on 11/29/11 at 9:41 am to Zilla
Honestly, it is not hard to get an agent to take a cut in their comission. I have seen agents throw in money at the closing table more than once when the buyer and seller were pissed at each other. The realtor wants to make the sale happen because something is better than nothing.
Posted on 11/29/11 at 9:58 am to bamaswallows
quote:
It's amazing that agents even exist anymore and make a living at it!
More true than you sarcastically realize.
quote:
Listing agent works for seller and negotiates the commission with seller.
Right. "Negotiates".
quote:
Think of it however you want to, but seller pays it and that is FACT.
Quick question: without a buyer bringing money to the table, how much money will the seller receive to then pay out to the listing agent?
quote:
If agent has already negotiated his commission with seller, and you are buyer (whether the agent is dual agent or not) why would he want to forfeit part of his already agreed upon commission to you?
If the buyer uses a selling agent, the listing agent is "only" going to get 3% anyway. I believe the OP's question was about employing dual agency and asking the listing agent to give on the other 3% that he would not have been getting in the first place. My question is why WOULDN'T the listing agent want to wet his beak a little more for a transaction he is already involved in?
quote:
The reality is that SOMETIMES in order to get a deal done, agents will offer some of their commission towards the deal. It must be approved by their broker and all parties to do so. It happens, but it depends on how desperate everyone is to make that particular deal work.
I love how you paint this as some kind of group decision in which most people are opposed. Note to you: the buyer and seller don't want to pay ANY fees.
quote:
You would be best served by letting the agent decide/come to his own conclusion to offer part of his commission to get the deal closed, rather than asking for his help in the transaction, and then asking him to give you some of his earned money at the end of the day.
i.e. You would best be served by shutting your mouth and paying full commissions.
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