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The seller has no incentive because it doesnt cost them any less. In fact, the seller is basically paying for your agent so do yourself a favor and find a nice realtor that wants a commision. If you find an independent one, you may be able to get one that will split the fee they get with you since you already did half the work and found the place.
Just to clarify, "finding the place" is not "half the work". The REAL work starts once the place is found, in determining what's a good offer to make, negotiations after the offer is submitted, and shepherding the deal through all the way to closing (I compare it to "herding cats").
OK, my parents made the offer which was the asking price. Because there were 2 other offers before us, the realtor (now became dual agent) told us that we didn't have to deposit any money just yet. The seller accepted and signed the sales contract today, we still have not deposited any Earnest money. I've just found out that there was a burglary in that same subdivision just last week and there have been some crimes in the nearby neighborhood. Should I back out of the contract and what would it cost me if I did?
If the real estate agent is now a dual agent, they should have informed your parents if they have an option period (I don't know if that exists in your state). Here, it's a 7 to 10 day period, paid for with an option fee check (usually around $100), during which you do your due diligence and get the house inspection and find out anything that might make you not wish to buy the house, and you can walk and get your money back. However, that can vary dramatically from state to state, and in any case your parents should ask the agent who is now working for them as well as the seller.
I'm doing this myself but I'm a pretty smart and researched for a long time before purchasing. I also have friends that are well-versed in the process. It is just between myself and the seller and we have a doc agent. I placed my earnest money with the title company as I would never, ever hand a check to just some "guy". Of course, the seller first suggested I send him the check but when I said no, he had no problem (which he shouldn't anyway). Go through a third party.
The original poster has a valid opinion. Listing agent has a tendancy to work with buyers with no agents. Since they will make more money. Seller of the property would like it too because they can possibly slash off 1% of agent fees, since it's only 1 agent. As for the buyer representing your interest, that is not always the case. Some buyers will do whatever it takes to get the sell. I know, because one former buyer agent tried to lie to me about property taxes (claiming there was no mellaros tax). If I had gone through to escrow, I would've lost money on appraisals and inspections, not to mention time wasted on looking for a home (wasted 2 weeks). So do yourself a favor, DO your own homework and not rely to much on the agent.
Please-please-please get a Realtor to protect your interests. You need a Buyers Agent. We have been down that road before and got screwed! The Seller pays the realtor commission for both sides so why wouldn't you get someone to protect your interests? Also, DO NOT let the listing agent that is representing the Seller represent you! We have also made that mistake too and less than 2 hours before Closing we got the HUD-1 Settlement Statement with the breakdown of charges and again, screwed! I asked the agent, what is this $400 charge here for Homeowner's Association that is above and beyond what we should pay? It turned out that it was the unpaid, back HOA dues that the Seller did not pay that was being pushed off onto us. Her response was, "well I told you that the Seller didn't have much money." How is THAT for representation!
I’m a first-time home buyer and I don’t have an agent so I need as much help as I can get. I really love this particular house but there have been several offers so I don’t want to hire a realtor because I think that might just give me the edge in this buying competition.
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Originally Posted by featheroflove
well, if I don't have a realtor, the seller's realtor wouldn't have to share her benefit, so I think she might persuade the seller to go with us. That was what I meant.
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Originally Posted by featheroflove
We are going to see the house and meet the seller's realtor for the first time today. If all goes well today, my parents are very likely to make an Earnest Money Deposit same day.
Quote:
Originally Posted by featheroflove
OK, my parents made the offer which was the asking price. Because there were 2 other offers before us, the realtor (now became dual agent) told us that we didn't have to deposit any money just yet. The seller accepted and signed the sales contract today, we still have not deposited any Earnest money. I've just found out that there was a burglary in that same subdivision just last week and there have been some crimes in the nearby neighborhood. Should I back out of the contract and what would it cost me if I did?
I know this is an old thread, but it was an amusing one to read.
I wonder how it turned out?
EDIT: I just read the OP's subsequent posts. What a comedy of errors!
Last edited by jackmichigan; 07-01-2013 at 03:38 AM..
I’m a first-time home buyer and I don’t have an agent so I need as much help as I can get. I really love this particular house but there have been several offers so I don’t want to hire a realtor because I think that might just give me the edge in this buying competition.
My question is this: How do you make an Earnest Money Deposit? I’ve read that it should be about $1000 or 1% of the purchase price and that it should be a check made payable to a third party or an escrow account. However, I want to know WHERE do you do this depositing process? At a bank in front of an agent? Who should be there when I make the money deposit and contract besides the seller’s realtor and myself?
Who should this third party (to make the check payable to)? If the realtor is from Remax, should I make the check payable to the Remax company? Or should I ask the realtor? Can you give me some example of a title company or who the check should be made payable to (specific and proper names of companies would make it easier to understand). I don't really understand the term "escrow account." What if the realtor told me to give the money directly to his/her or the seller?
I have that happened to me before, the seller’s realtor told me to deposit in cash and I didn’t know any better then. I know not all realtors are like that but I’m afraid I might be fooled again.
Pro-tip ... if you are befuddled by an earnest money deposit, do you honestly think going into this home purchase WITHOUT a RE agent advising you is a smart move?
Pro tip #2 - THE SELLERS ARE PAYING FOR 'YOUR AGENT' ... GET ONE NOW ( a good one )
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