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Old 09-09-2008, 10:59 AM
 
Location: Spring, Texas
409 posts, read 1,519,236 times
Reputation: 161

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[quote=Austin-Willy;5188070]And there are many more buyers who overpay who are represented by agents, so that's neither here nor there. But I guess the saying about not knowing what you don't know is equally applicable to agents.

I guess that could be true if the buyer brought cash to the table... if financing is involved...there will be an apprasial done and lenders will not lend more than what a property is worth. So ...if your strictly speaking from an investment perspective perhaps you could say.."... there are many more buyers who overpay who are represented by agents...." Market value and investment value carry different agendas....Sunny
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Old 09-09-2008, 11:11 AM
 
1,151 posts, read 2,668,161 times
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[quote=sunny57;5193491]
Quote:
Originally Posted by Austin-Willy View Post
And there are many more buyers who overpay who are represented by agents, so that's neither here nor there. But I guess the saying about not knowing what you don't know is equally applicable to agents.

I guess that could be true if the buyer brought cash to the table... if financing is involved...there will be an apprasial done and lenders will not lend more than what a property is worth. So ...if your strictly speeking from an investment perspective perhaps you could say.."... there are many more buyers who overpay who are represented by agents...." Market value and investment value carry different agendas....Sunny
Two things. First, your point about appraisals is equally applicable to represented and unrepresented buyers. So I suppose you are saying that unrepresented buyers are also protected from overpaying because they can't get a loan for an amount higher than the appraisal. And I guess that as long as you get an appraisal, you don't need a sales agent to protect you from overpaying.

Second, the appraisal argument just isn't true. A large portion of the current lending mess was caused by appraisals coming in at whatever they need to come in at to justify the transaction. There is now some focus being placed on that problem, but it's a problem nonetheless.
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Old 09-09-2008, 11:30 AM
 
Location: Spring, Texas
409 posts, read 1,519,236 times
Reputation: 161
[quote=Austin-Willy;5193656]
Quote:
Originally Posted by sunny57 View Post

Two things. First, your point about appraisals is equally applicable to represented and unrepresented buyers. So I suppose you are saying that unrepresented buyers are also protected from overpaying because they can't get a loan for an amount higher than the appraisal. And I guess that as long as you get an appraisal, you don't need a sales agent to protect you from overpaying.

Second, the appraisal argument just isn't true. A large portion of the current lending mess was caused by appraisals coming in at whatever they need to come in at to justify the transaction. There is now some focus being placed on that problem, but it's a problem nonetheless.
Yes...I'd agree the apprasial is applicable to any party purchasing a home.

I think you made your own point ...meaning, with the lender/ apprasier relationship, under the microscope...apprasials are proofing much tighter margins...no real breathing space any longer. At least not in my transaction anyway...Sunny
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Old 09-09-2008, 12:08 PM
 
2,755 posts, read 11,739,675 times
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Quote:
Originally Posted by frankurias View Post
So, here's my question: If I go through the process of purchasing the house without a buyer's agent, does the seller's agent get the percentage that would have gone to the buyer's agent?
Quick answer: yes, the seller's agent gets in every case. If you are keen to buy without a buyer's agent, you could consider shopping for FSBO properties.

Also, there are a few buyer's agents that will rebate some of their commission to their clients, though my experience is that they will only make such a deal if the client's are very DIY and will do most of the work for them.
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Old 09-09-2008, 01:47 PM
 
1,151 posts, read 2,668,161 times
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Originally Posted by tfox View Post
Quick answer: yes, the seller's agent gets in every case.
This is not true. I have personal experience with two transaction wherein the seller's agent agreed to reduce their commission when the buyer (me) wasn't represented by an agent. The part about the buyer having to do a lot of work is true, however. So be prepared for that if you want to go this route.
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Old 09-11-2008, 06:50 PM
 
Location: Fort Worth, TX
48 posts, read 170,497 times
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Quote:
Originally Posted by DanFromSoDak View Post
But the point is that the broker does NOT receive less. If I buy a house using an agent, the seller's agent gets 4.2% and my agent gets 2.8% (or numbers close to those). If I buy a house without using a buyer's agent, why should the broker now get the full 7%? He didn't do any extra work! Clearly, since I am acting as my own agent, I should be entitled to that 2.8% (which I "receive" if I ask the seller to reduce the price by that amount), since I am the one working in place of a buyer's agent.

So how do you believe that the broker is receiving less?

You say "half the pay", but you are getting paid EXACTLY THE SAME as if a buyer's agent were involved! It's not half! And there is virtually no additional work to be done on your part.
If you are not a licensed realtor employed by a real estate broker or a real estate broker, you cannot be paid a fee!!!
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Old 09-11-2008, 06:52 PM
 
Location: Fort Worth, TX
48 posts, read 170,497 times
Reputation: 22
[quote=Austin-Willy;5193656]
Quote:
Originally Posted by sunny57 View Post

Two things. First, your point about appraisals is equally applicable to represented and unrepresented buyers. So I suppose you are saying that unrepresented buyers are also protected from overpaying because they can't get a loan for an amount higher than the appraisal. And I guess that as long as you get an appraisal, you don't need a sales agent to protect you from overpaying.

Second, the appraisal argument just isn't true. A large portion of the current lending mess was caused by appraisals coming in at whatever they need to come in at to justify the transaction. There is now some focus being placed on that problem, but it's a problem nonetheless.
This is very true about appraisals. When purchasing a home, appraisals still tend to be generous...it's when doing a refi that appraisals tend to get tighter.
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Old 09-11-2008, 07:06 PM
 
Location: Fort Worth, TX
48 posts, read 170,497 times
Reputation: 22
Quote:
Originally Posted by frankurias View Post
I have located a house I am interesting in purchasing and done the appropriate research (tax assessor/comps/schools/etc....). I am not familiar with Colorado's real estate laws as far as agent fees go. It seems like the 4 agents who I've spoken to all say that I should have a buyer's agent because it won't cost me (the buyer) anything, and that the seller has to pay the agent fees. Since the agents I have tried to use essentially unlock the doors of the houses I want to see and agree with me if I think the house is a piece of crap (what the hell is up with carpet in bathrooms in denver?), I think that their function is completely useless. I have heard myths of helpful agents, but I am skeptical of their existence. I'd prefer for the percentage to reduce the price of the house, not a real estate agent's pocket. So, here's my question: If I go through the process of purchasing the house without a buyer's agent, does the seller's agent get the percentage that would have gone to the buyer's agent? Thanks in advance, and sorry if my rant offended any agents who peruse this. I'd guess that almost everyone who has ever bought or sold a house at least once agrees with me.
Just keep in mind that you should really know what you are doing. If you do, then by all means do this on your own, but I would negotiate in the offer the commission paid to the seller's agent. Keep in mind that someone will need to let you in for the appraisal, the inspection, you will need to find people and order those things. Since you don't have access to the MLS, you won't be able to see what loan size is on the house. If you don't close in a certain amount of time, there will be additional fees to pay to stay in the contract. What if you get a lender that seems great at first, but ends up being slow as molasses?

For me personally, if I was in the business, and knew how to do all of this and had contacts in the mortgage industry, then yeah, I would buy it myself. But if my real estate experience consisted of maybe buying a home once or twice, it would be worth it to have a buyer's agent.

Good luck!
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Old 09-11-2008, 07:13 PM
 
1,151 posts, read 2,668,161 times
Reputation: 248
Quote:
Originally Posted by AV8Recruiter View Post
If you are not a licensed realtor employed by a real estate broker or a real estate broker, you cannot be paid a fee!!!
Well, this is a state law issue, so it may not be true in all cases. For example, licensed attorneys in Texas can receive fees if they are a principal to the transaction.
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Old 09-11-2008, 07:15 PM
 
1,151 posts, read 2,668,161 times
Reputation: 248
Quote:
Originally Posted by AV8Recruiter View Post
Since you don't have access to the MLS, you won't be able to see what loan size is on the house.
This information is available in the public records.
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