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Buyer's do not pay agents in NJ!!! That's why every buyer out there should use a realtor. We are a free service looking out for their best interests. And 99% of FSBO have no problem paying out a commission to a buyer's agent, they just don't want to pay someone 3% to list it when they feel that agent doesn't necessarily do anything to deserve it. They are still selling by owner and not through realtor though.
We are not as free service, and I wish people would stop saying that we are. Strike that. Perhaps you ARE a free service, but I sure am not. I get paid.
For those who think the agent is being selfish and not looking out for the interests of their buyer, when I am working with a buyer, I have a contract, which was preceeded by a discussion, spelling out how I am to get paid in the event my client wants to buy a house from an unrepresented buyer. Sometimes, (and I assumed, perhaps incorrectly, this was the case here,) the buyer says they don't want to pay out a fee seperatley as it cannot be rolled into their mortgage, and they only want to see a FSBO if the seller is paying out a co op fee sufficient to cover the buyer agent fee. And if that is what the buyer wants, then that is how the buyer agent has to approach any FSBOs.
This seller asked a specific question. That question is what many of us answered. We didn't comment (or I didn't comment) on the relationship of that agent with their buyer, and whether the agent was looking out for themself or their agent, becasue we simply don't know what that arrangement is.
when I am working with a buyer, I have a contract, which was preceeded by a discussion, spelling out how I am to get paid in the event my client wants to buy a house from an unrepresented buyer. Sometimes, (and I assumed, perhaps incorrectly, this was the case here,) the buyer says they don't want to pay out a fee seperatley as it cannot be rolled into their mortgage, and they only want to see a FSBO if the seller is paying out a co op fee sufficient to cover the buyer agent fee. And if that is what the buyer wants, then that is how the buyer agent has to approach any FSBOs.
The vast majority of agents do not use such contracts when acting as buyer agents. As an industry insider, I'm sure you know this.
But that's beside the point. If this real estate agent were showing a represented listing to their client, she could expect no more than 3% commission. And now she's working against her client's interest (by not showing them a house she thinks they would be interested in) because she can't shake the FSBO seller down for more than the standard 3%.
That's shady. That's why real estate agents have a bad reputation. And that's the stuff you guys need to put an end to if you want to be taken seriously.
The vast majority of agents do not use such contracts when acting as buyer agents. As an industry insider, I'm sure you know this.
But that's beside the point. If this real estate agent were showing a represented listing to their client, she could expect no more than 3% commission. And now she's working against her client's interest (by not showing them a house she thinks they would be interested in) because she can't shake the FSBO seller down for more than the standard 3%.
That's shady. That's why real estate agents have a bad reputation. And that's the stuff you guys need to put an end to if you want to be taken seriously.
But you don't know that. You have no way of knowing it. The agent may have discussed withtheir buyer that there is additional work to be done if they are buying from a FSBO. They may have given their clients the conventional wisdom that most FSBOs are overpriced anyway. And they may have agreed with their buyer clients that they would show them any FSBO that pays them 4% or more.
Now, I will admit that it's UNLIKELY to have happened that way. As a rule, you're correct, buyer agents haven't made that agreement. But I am loath to assume such a thing without knowing it for sure.
The agent may have discussed withtheir buyer that there is additional work to be done if they are buying from a FSBO.
Come on ... what additional work is required when you represent a buyer purchasing from an unrepresented FSBO as compared to a represented seller? A buyer's agent shouldn't even be involved other than writing up the contract, making the offer, and telling the seller to get with his attorney for legal advice during attorney review -- especially since they claim to represent the buyer and would have a conflict of interest were they to do anything on behalf of the seller.
They may have given their clients the conventional wisdom that most FSBOs are overpriced anyway.
I realize you are reticent to make assumptions about this agent, and her possible motives, and I agree it could be wrong to jump to conclusions with limited information on an internet forum. I'm always willing to give someone the benefit of the doubt as well, and you may be perfectly correct that there's nothing necessarily questionable in this scenario.
But what if the agent asks the seller if they can manipulate the price, essentially so that the higher percentage can be accommodated or in essence, absorbed? Obviously I want to get the best price I can get, so if a buyer is willing to pay it, I can't complain. But I have to admit that it doesn't apeal to my sense of fairness. It also seems to be getting well away from acting in the interest of the buyer, and that is what has occurred.
Anyway, I'll do the deal at 3.5% because I said I would, but I'm not so sure I'm going to enjoy working with this person. For the record, I have worked with a particular realtor a few times over the years, buying and selling, and I thought very highly of her. I was just trying to save some cash doing an FSBO this time around.
people who work on commissions are always working for themselves unless they are are looking for repeat business. In real estate, there isn't much repeat business. They could care less about their clients.
Just curious if you all think this is reasonable. She says she has potential buyer that would be interested, but won't show the condo unless we agree to a 4% commission. We were ready to offer 3%, but may offer her 3.5%
What do you think?
I know you asked becouse you wanted opinions, but other than Bill and Jill on this first page, the advice given could likely get you a no sale.
It is a buyers market, if this agent has a buyer and you want to sell, then pay her. For all you know, the buyer could be her, or a relative of hers.
I dobt that she is going to try to trick you into a listing. No Realtor with a IQ over 70 would try that one, considering it is highly illegal and on top of that, there is 3 day right of recission on listing agrements as well as home sales.
The vast majority of agents do not use such contracts when acting as buyer agents. As an industry insider, I'm sure you know this.
But that's beside the point. If this real estate agent were showing a represented listing to their client, she could expect no more than 3% commission. And now she's working against her client's interest (by not showing them a house she thinks they would be interested in) because she can't shake the FSBO seller down for more than the standard 3%.
That's shady. That's why real estate agents have a bad reputation. And that's the stuff you guys need to put an end to if you want to be taken seriously.
You say that as if you know that to be a fact. I have seen listings out there paying 4% commissions to the buyers agent, and I have seen listings out there paying 3% commissions along with a large bonus to the buyers agent.
people who work on commissions are always working for themselves unless they are are looking for repeat business. In real estate, there isn't much repeat business. They could care less about their clients.
I am sorry, but you are just rude and wrong.
I have had repeat business as well as past client referal business every year except the first year I was in business. Any Realtor who is good, is looking out for their clients interests. If your not, your past clients will not refer their friends and relatives to you, but rather they will spend their time filling complaints against you.
I was just trying to save some cash doing an FSBO this time around.
Btw, Lusitan, how do I get my FSBO on MLS?
Thanks all.
You are likely costing yourself more than you are saving yourself. On top of that if you follow the advice that many in the New Jersey part of this forum are giving, you are costing yourself 2% for every month you waist not getting your home sold trying to FSBO it.
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