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Posted on 12/4/11 at 10:41 pm to Tiger JJ
thanks, I'll look him up... I do have another question...I'm trying to decide the best way to actuallly accomplish saving the 3%...
How do I bring up or ask the sellers agent to lower their commission ? ask for a rebate directly to me ? ask for them to lower their commission "from the seller" in order to get them to accept a lower offer?
At what point in negoations do should I do this ?
I've also been thinking, perhaps it might make sense to find a flat/low fee buyers agent ? Maybe I could find a buyers agent that would accept .5% and rebate me the remaining 2.5% at or after closing ?
How do I bring up or ask the sellers agent to lower their commission ? ask for a rebate directly to me ? ask for them to lower their commission "from the seller" in order to get them to accept a lower offer?
At what point in negoations do should I do this ?
I've also been thinking, perhaps it might make sense to find a flat/low fee buyers agent ? Maybe I could find a buyers agent that would accept .5% and rebate me the remaining 2.5% at or after closing ?
Posted on 12/5/11 at 6:01 am to Zilla
Do you already have the house picked out? Otherwsie I would use a FSBO so you don't have to go through the negotiations.
Before you ever find the house. Go to an agent, tell them if you buy a house that they are the listing agent for, you want 2% (or whatever) back from their 6% commision.
quote:
At what point in negoations do should I do this ?
Before you ever find the house. Go to an agent, tell them if you buy a house that they are the listing agent for, you want 2% (or whatever) back from their 6% commision.
Posted on 12/5/11 at 7:08 am to C
quote:
Before you ever find the house. Go to an agent, tell them if you buy a house that they are the listing agent for, you want 2% (or whatever) back from their 6% commision.
Let's get back to reality a bit. First, any listing would only get 3% in normal transaction. 6% would be buyer's agents commission and listing agents commission. If you are saying you want me to dual rep for a 4% commission, I would ask to involve another agent to avoid dual agency, especially in this case when someone of your mindset comes to the table, I would protect myself at all costs. Not trying to offend, but law of averages tells me do this in these situations, dual rep's have a long history of unhappy endings, all parties involved
What price house are we talking about here? I'm thinking we're in the 200k range or less. If so, a 1% commission as the listing agent on 200k would be 2k. After my split with brokerage, taxes, advertising cost and man hours, I would not break even on this transaction.
Now if another agent brings me a buyer to rep for 1%, all terms are agreed, and I'm just dotting i's and crossing t's for buyer, this is done regularly.
Are you looking for the same agent to rep both parties for a total of 1% on a 200k house give or take?
Posted on 12/5/11 at 8:37 am to C
quote:
Do you already have the house picked out? Otherwsie I would use a FSBO so you don't have to go through the negotiations.
Our motivation for moving is to get into a certain school zone...so we are only looking at about 2 or 3 neighborhoods.....we have one house we are interested in ...the listing agent is going to open it for us today
Posted on 12/5/11 at 11:11 am to Zilla
quote:
thanks, I'll look him up... I do have another question...I'm trying to decide the best way to actuallly accomplish saving the 3%...
IMO, here's what you do. Find yourself an atty you trust that will handle all the paperwork for you. Pay him 1% of the transaction or a flat fee or whatever you negotiate.
Then, when you find your house, tell the listing agent you are coming without an agent of your own, so you want the fee that would have gone to your agent to instead lower the price of the house by, say, 2%. That way, the seller is still getting a higher net than if you had come with an agent of your own.
Posted on 12/5/11 at 2:11 pm to Tiger JJ
would it make more sense to not bring that up until after the 1st counter offer ?
We just had a look at the house...considering making an offer...huge yard, huge house...lots of updating needed...list price is $70/sqft in an area that normally pulls 90+...but the bathrooms and kitches pretty much need to be gutted...im gonna offer low...then upon counter I could recounter and bring up the 2% savings as a reason they should accept ? ...agent is a little old lady that probably just does this to give her something to do
We just had a look at the house...considering making an offer...huge yard, huge house...lots of updating needed...list price is $70/sqft in an area that normally pulls 90+...but the bathrooms and kitches pretty much need to be gutted...im gonna offer low...then upon counter I could recounter and bring up the 2% savings as a reason they should accept ? ...agent is a little old lady that probably just does this to give her something to do
Posted on 12/5/11 at 2:38 pm to Zilla
quote:
agent is a little old lady that probably just does this to give her something to do
"Old age and treachery overcome youth and skill..."
Posted on 12/5/11 at 3:09 pm to Zilla
quote:
would it make more sense to not bring that up until after the 1st counter offer ?
I don't see any reason to hide it.
Posted on 12/5/11 at 3:39 pm to Tiger JJ
I just figured if it's taken off the top their only going to come down so much regardless....
but if instead I get them down to about as low as they want, then I pull this out, they can still justify going lower b/c it's easy for the to see it the same net for them at that point....then the deal is on the line and the agent might be all for pushing it a little bit so as not to lose me as a buyer (I realize this goes both ways, but is's my market right now)
but if instead I get them down to about as low as they want, then I pull this out, they can still justify going lower b/c it's easy for the to see it the same net for them at that point....then the deal is on the line and the agent might be all for pushing it a little bit so as not to lose me as a buyer (I realize this goes both ways, but is's my market right now)
Posted on 12/6/11 at 9:49 am to Zilla
quote:
What are the downsides of going directly through a listing agent ?
Why would you want to do that?
If you are going to pay a 6% commission anyway, I would make damn sure that 3% is working in my best interest and not just trying to move the property to 'double-up'
All of the concerns you mention in the OP are real and I would not use dual agency if you have these specific concerns
Posted on 12/6/11 at 9:51 am to ItNeverRains
quote:
I would ask to involve another agent to avoid dual agency, especially in this case when someone of your mindset comes to the table, I would protect myself at all costs. Not trying to offend, but law of averages tells me do this in these situations, dual rep's have a long history of unhappy endings, all parties involved
You came to the OT for advice. Take it.
Posted on 12/6/11 at 10:35 am to Rantavious
quote:
Why would you want to do that?
didn't word it right, I meant basically not having an agent
Posted on 12/6/11 at 11:24 am to Rantavious
quote:
If you are going to pay a 6% commission anyway
But he's NOT going to be paying a 6% commission anyway. He's going to get a discount. Why? Because he's the one with the money.
Posted on 12/6/11 at 3:48 pm to Tiger JJ
quote:
But he's NOT going to be paying a 6% commission anyway. He's going to get a discount. Why? Because he's the one with the money.
Well, the first thing he needs to find out if it is in fact a 6% listing and IF it is still a 6% listing if there isn't a seller's agent. Many real estate firms negotiate a lower commission if there isn't a selling agent to pay. It's all dependant upon the listing agreement which is the contract that determines the pay of the agents (brokers actually) in question.
This post was edited on 12/6/11 at 3:49 pm
Posted on 12/7/11 at 8:44 am to VABuckeye
I usually do 6% with a clause saying if I bring buyer it's 4-5%. I protect myself on the front end every time. Unless he's buying the house from a retard agent, this situation is well documented before he knocks on the door.
This thread is the equivalent of me starting a thread telling of an invention idea of this box that uses microwaves to cook faster than anyone has ever thought possible
This thread is the equivalent of me starting a thread telling of an invention idea of this box that uses microwaves to cook faster than anyone has ever thought possible
Posted on 12/7/11 at 9:58 am to ItNeverRains
quote:
Unless he's buying the house from a retard agent, this situation is well documented before he knocks on the door.
When will you people get it through your heads that we DON'T GIVE A frick what the contract says? EVERYTHING is negotiable. Not even a chimp would walk away from an easy sale that was devoid of fees that THEY WOULDN'T HAVE GOTTEN ANYWAY had the guy just come with a useless selling agent instead.
Posted on 12/7/11 at 10:08 am to ItNeverRains
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.
Thats navigating the American justice system and legal code. The OP is talking about finding a house to live in, many of which are already listed on the internet. Your job is not exactly rocket science
Posted on 12/7/11 at 11:18 am to Tiger JJ
well I asked about it and asked if the commission was still 6% if there is not buyers agent... the response was :
"The comission is between the owner and the broker via the listing agreement contract."
Guess I'll try to get my attorney to structure the offer such that, if the listing agent cooperates, the selling price is reduced by 3%
"The comission is between the owner and the broker via the listing agreement contract."
Guess I'll try to get my attorney to structure the offer such that, if the listing agent cooperates, the selling price is reduced by 3%
Posted on 12/7/11 at 11:52 am to Zilla
quote:
well I asked about it and asked if the commission was still 6% if there is not buyers agent... the response was :
"The comission is between the owner and the broker via the listing agreement contract."
Who did you ask?
quote:
the selling price is reduced by 3%
I think it's smart to ask for at least slightly less than 3% reduction.
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