found a home we love - do we need agent and what will a good agent do for us?

[DallasChoices]

The house is actually in the 500K range. So we are talking a LOOOOOOOOOT of money for someone here.

I don't know how much work is involved past the "finding the house" bit. But I know that I myself would jump on any load of work in order to make that much so quickly.

[Dallas native]

Originally Posted by loves2read

BILLDFW==that is same point I have made before--unless the seller is actually going into his/her own pocket to close that sale then the buyer does wind up paying ALL 6% RE costs because it comes out of the sale price of the house...
that is one reason why sometimes a buyer's agent also does not really want to negotiate a low-ball offer...

frankly I think a RE agent who knows the area and maybe the builder is better than an attorney--

Well it indirectly comes from the buyer, but the seller is the one who negotiates the commission percentage with the listing agent. If a sale is made without the assistance of a Realtor then there is no commission and the seller pockets more money. Conversely, if there is a RE commission involved it reduces the seller's proceeds at closing. That makes the seller's pockets a little emptier. And in the case of a seller who is underwater on their mortgage yet doesn't allow the property to go into foreclosure, if they do get a sale on their property they will have to bring money to the closing table. Part of that money may go towards closing costs such as RE commissions. It just depends on how you look at it.

[billdfw]

Originally Posted by DallasChoices

The house is actually in the 500K range. So we are talking a LOOOOOOOOOT of money for someone here.

I don't know how much work is involved past the "finding the house" bit. But I know that I myself would jump on any load of work in order to make that much so quickly.

If you want to pay someone $15,000 for very little work, I guess you have the right to do so.

Otherwise, take my advice in my previous posts.

And it is legal to get a buyer's rebate for a buyer's agent. There are several major realtors who specialize in this every day and have been doing so for years.

[Dallas native]

Originally Posted by DallasChoices

The house is actually in the 500K range. So we are talking a LOOOOOOOOOT of money for someone here.

I don't know how much work is involved past the "finding the house" bit. But I know that I myself would jump on any load of work in order to make that much so quickly.

Well then it is likely that if you get a buyer's agent to represent you, that person stands to receive as much as $15,000 to work for you on this transaction. That does seem like a lot for someone who didn't actually help you find the house. However, if that buyer's agent is skilled enough at negotiating or has inside information that can reduce the sales price for you, then that will benefit you.

The sellers have already committed themselves to paying the listing broker a 5% to 6% commission of which 3% will most likely go to the buyer's agent. In the event that there is no buyer's agent, they are probably still obligated to pay the listing broker the same 5% to 6% commission. So, the listing agent would love for you to submit your offer directly to him/her. But, in so doing, you are turning that person into an intermediary who represents both parties and therefore can not provide much advise to either party. Now, in that case, their broker might appoint another agent from the same office to work with you but that is still not in your best interest.

Unless you are very skilled at negotiating yourself and you are also armed with all of the information necessary, you have nothing to lose and everything to gain by obtaining the services of a VERY GOOD buyer's agent.

[nsumner]

Originally Posted by DallasChoices

My question is, what are the duties of a buyers agent beyond that. What will a GOOD buyers agent do for us at this point and what should we expect as far as their service goes?

Ok, I will do my best to answer your question:

A buyer's agent duties
- will be representing you exclusively in that transaction.
- will look after your best interest.
- will be able to share with you EVERYTHING they know about the seller's situation, home condition, desirability about the house and not so desirable features keeping in mind resale.
- will tell you about crime rate, if schools have poor ratings, anything that can impact the value of the home or neighborhood.
- Will be able to tell you how much the owners owe on their mortgage (about 90% of the time) = negotiating power
- share with you what the house is worth by showing you a written market analysis following the same process a professional appraiser would.
- Will keep your motivation private.

Good luck,

Naima