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The background:
We are looking to purchase a home and are on a tight budget. We found a home that we like a lot that is just above our range and needs a little work. In order to save as much as we can and possibly make the deal work, we reached out to the seller's agent with the intention of using them as our buyer's agent. In this way, we were thinking we could eliminate the buyer's agent fee in addition to the typical negotiations. It turns out the listing realtor appears to be pretty senior (i.e. very busy with many and more expensive properties) and has referred us to a junior realtor from the same office to view the home. We have not seen the house yet and we do not have any broker agreements in place.
The questions:
Will we still be able to proceed as planned or will the junior realtor want to claim a buyer's commission? If the seller's realtor does not want to eliminate the buyer commission, can we then come back with another buyer's realtor of our choosing? And again, will the junior realtor who showed us the house to begin with have any claim?
Thanks in advance for your responses. It would be great if you could respond asap as we are scheduled to see the house this afternoon with the junior realtor. Thanks!
Last edited by tinwoman; 04-14-2012 at 05:16 AM..
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I recently bought a place and was advised against using the same agent, but if it is a different agent within the same group, that might work out ok and not considered a "double agent". There are so many considerations that will come up between now and closing with the purchase and sales agreement, the inspection, subsequent negotiations, that you really do not want to worry about conflict of interest. Even though it may seem you're saving money somehow going this route, it is very likely it will end up costing you in another way.
If you use a different agent from the same brokerage, my guess is the seller will be paying both the fee for their agent and the fee for the other agent. But others on this board with more RE experience will have good replies I'm sure.
It's unlikely they'll be able to pass on the savings of not having a buying agent (which is likely what you were attempting to do). It could be possible but I have no actual experience with this. Did the senior agent confirm that he or she could eliminate the buyer's agent fee before referring you to the junior agent? If I were a junior Realtor I certainly wouldn't work for free, especially for someone who's so busy (read making so much money) that they can't do it for themselves.
What is likely, though, is that you've signaled to the seller and the seller's agent that you're desperate for this house. If they're even reasonably competent they will use this information to extract the maximum price from you and, if possible, an even higher price from someone else interested in the house. Maybe the people you're dealing with are in a rush to sell or not interested in getting the maximum price for their property (in which case all of your machinations could be worthwhile), but that's unlikely. If they aren't, just remember that there are far more houses for sale than this one.
Quote:
Originally Posted by tinwoman
Hi All,
The background:
We are looking to purchase a home and are on a tight budget. We found a home that we like a lot that is just above our range and needs a little work. In order to save as much as we can and possibly make the deal work, we reached out to the seller's agent with the intention of using them as our buyer's agent. In this way, we were thinking we could eliminate the buyer's agent fee in addition to the typical negotiations. It turns out the listing realtor appears to be pretty senior (i.e. very busy with many and more expensive properties) and has referred us to a junior realtor from the same office to view the home. We have not seen the house yet and we do not have any broker agreements in place.
The questions:
Will we still be able to proceed as planned or will the junior realtor want to claim a buyer's commission? If the seller's realtor does not want to eliminate the buyer commission, can we then come back with another buyer's realtor of our choosing? And again, will the junior realtor who showed us the house to begin with have any claim?
Thanks in advance for your responses. It would be great if you could respond asap as we are scheduled to see the house this afternoon with the junior realtor. Thanks!
The seller is paying the realtor's commission, not the buyer. We sold our house recently and our agent was both the buyer and the seller agent. We got a tad more than 1% knocked off our commission as a seller. I just can't see a scenario where the seller pays the agent but the buyer gets the cut.
The seller is paying the realtor's commission, not the buyer. We sold our house recently and our agent was both the buyer and the seller agent. We got a tad more than 1% knocked off our commission as a seller. I just can't see a scenario where the seller pays the agent but the buyer gets the cut.
Yep, very true. It's is a wide spread misconception that if you use sellers agent as your buyer's agent you will get a rebate. Commission to the seller's agent is negotiated between seller and the agent when listing contract is signed. Seller pays this commission if the house sells, regardless of how many agents are involved. So seller can not give you any rebates if you come without your agent. You reached out to sellers' agent, but apparently he does not want to give you rebate either - and he doesn't have to. He will be working for two parties (sellers and you), hence he has the right to collect both commissions.
This is not to say that you shouldn't buy directly from listing agent. Sometimes it works out really well for all parties (if agent is very experienced not just in real estate per se, but also in being a dual agent), and other times it's better to have your own agent. Seller's agent referred you to his associate to prevent any conflict of interests.
Is there any particular reason you don't want to work with the junior agent, or senior agent, other than commission rebate?
This question belongs in the real estate forum. I know that it's commonly believed there are 2 different fees, listing and Buyer's agents, but it is one fee that is then split if there are 2 agents. Some people have no problem using the same person in a dual agent position but I totally disagree with that concept. I want MY agent to be representing ME, not both side of the same negotiation. I am not impuning the professionalism of any agent, but it truly is not psychologically possible to push for the benefit of one side and then the other.
With all the hundreds of agents in Massachusetts, and most of them quite ethical, why wouldn't you want the best representation for yourself?
Location: Montreal -> CT -> MA -> Montreal -> Ottawa
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Quote:
Originally Posted by NY Annie
This question belongs in the real estate forum. I know that it's commonly believed there are 2 different fees, listing and Buyer's agents, but it is one fee that is then split if there are 2 agents. Some people have no problem using the same person in a dual agent position but I totally disagree with that concept. I want MY agent to be representing ME, not both side of the same negotiation. I am not impuning the professionalism of any agent, but it truly is not psychologically possible to push for the benefit of one side and then the other.
With all the hundreds of agents in Massachusetts, and most of them quite ethical, why wouldn't you want the best representation for yourself?
^ This. Exactly this.
How would this one agent negotiate price for you as the buyer and be able to act on the seller's behalf as well? It's not possible.
You should find an agent who is representing YOU and your best interests only.
The background:
We are looking to purchase a home and are on a tight budget. We found a home that we like a lot that is just above our range and needs a little work. In order to save as much as we can and possibly make the deal work, we reached out to the seller's agent with the intention of using them as our buyer's agent. In this way, we were thinking we could eliminate the buyer's agent fee in addition to the typical negotiations. It turns out the listing realtor appears to be pretty senior (i.e. very busy with many and more expensive properties) and has referred us to a junior realtor from the same office to view the home. We have not seen the house yet and we do not have any broker agreements in place.
The questions:
Will we still be able to proceed as planned or will the junior realtor want to claim a buyer's commission? If the seller's realtor does not want to eliminate the buyer commission, can we then come back with another buyer's realtor of our choosing? And again, will the junior realtor who showed us the house to begin with have any claim?
Thanks in advance for your responses. It would be great if you could respond asap as we are scheduled to see the house this afternoon with the junior realtor. Thanks!
So, if I am reading this correctly, you were thinking that you could eliminate the agreed-on Buyer Agency fee, and then be able to negotiate further off the sale price, with the seller's agent negotiating on your behalf. Have you had this conversation conversation with the listing agent? Keep in mind that all of this needs to be approved by the seller, who is paying 100% of the commission paid. Now you're asking them to give up some of their commission to get the house sold...
Depending on if the agency that has listed the house is a Designated Agency brokerage or not, the listing agent can refer you as a buyer down to another agent in the firm. That agent will act as your facilitator, and be due the agreed co-broke fee. In addition, they will most likely give the referring agent (listing agent) a referral fee.
If it is not a Designated Agency situation, they could have offered to act in a Disclosed Dual Agency situation, but obviously they have brushed up on their Agency rules, and know that unless they previously had a signed Buyer's Agency Agreement with you, it's not truly a DDA situation. Sounds like an agent who knows their stuff. Too bad you tipped your hat early in the game, and they now know that you are hot for this house. Legally, they can and should be disclosing this to their client, the seller.
My advice is to find a buyer agent that works for YOU, will negotiate for YOU, and be there to answer all of the questions as you go through the process. Offer, negotiation, home inspection, appraisal, underwriting issues. You really want someone on YOUR side, not someone who wants to sell the house for their client. Just my opinion...
This question belongs in the real estate forum. I know that it's commonly believed there are 2 different fees, listing and Buyer's agents, but it is one fee that is then split if there are 2 agents. Some people have no problem using the same person in a dual agent position but I totally disagree with that concept. I want MY agent to be representing ME, not both side of the same negotiation. I am not impuning the professionalism of any agent, but it truly is not psychologically possible to push for the benefit of one side and then the other.
With all the hundreds of agents in Massachusetts, and most of them quite ethical, why wouldn't you want the best representation for yourself?
Here! Here! Never allow the sellers agent to be your agent no matter where you buy. You need someone to ask the right questions on your behalf even when there is suppose to be full disclosure. As the buyer you are not paying any fee for that home to the realtor. It all comes from the seller. Even when you obtain your own agent it is the seller who is paying him. You pay nothing! But you have given your agent the chance to earn a commission on the total price of the property and that person will represent you! Also, never use the same company or branch of a company. Don't use Century 21 if your seller is using Century 21 even if it is a different franchise.
I wouldn't do it, for many of the same reasons mentioned by others.
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Not the best strategy
