Buying a house without buyer's side realtor (sales, real estate)

[davenj08]

We recently placed an offer on a house listed on MLS without a buyer's side realtor. The offer did not go through becasue of non-monetary issues but the seller told us that they would accept a 3% discount on our offer as we were without a realtor (i.e. our offer of 97k was equivalent to an offer of 100k from a buyer with realtor). Would that be true for all listings?

It is usually agreed that the seller pays the buyer's agent but it is actually the buyer who is paying the seller and the seller in turn paying the buyer's agent from the sale price. If we can cut the buyer's agent, we can pay 3% less outright and still the seller would get the same share from the sale after paying 3% to his agent. If the buyer can negotiate directly and deal with the inspector, attorney & lender himself, why not save 10-15k and not use a buyer's agent? I know most of the realtors on this forum may not like this question but it is could save a lot for prospective buyers.

[artDDS]

You pretty much hit the nail on the head. I think a first time buyer could benefit from having a realtor hold his/her hand through the process but if you can handle negotiations and have a good attorney I think a buyer's agent is really unnecessary.

[armx]

daven:

You did not say whether the home is listed? Most likely not. Because if it is listed then the listing agent will become a dual agent & get seller side and buyer side commission. And, generally speaking, the Seller will not be able to reduce the commission just because you don't have an agent.

I am guessing you are buying from a FSBO in which case he is not paying any commission anyway ... so you should feel free to negotiate the price to the level you are willing to pay without worrying about the buyer's agent commission!! You may be able to negotiate the price even further down than the 3% below what the Seller is asking.

Since you don't have any representation or experience in buying and selling real estate you may prudently expect a surprise or two that you will end up owning and having to take care of after the purchase. Just make sure that you address major issues by way of contingencies in your agreement to protect your interest so you don't buy a big problem/s with the house.

......and good luck, you will need it.

[HeatherLynn822]

You will be absolutely fine!

Since "finding" our house (which she didn't do anyway, WE found it, also on MLS, then asked her to show it to us) our realtor has done absolutely nothing.

That is what attorneys & inspectors are for.

Your are right ~ the buyer's agent is pretty much useless, and if you can avoid one ~ DO IT!

[AndrewMensch]

Daven

Chances are, you are purchasing the most expensive item you will ever purchase when you buy a house. The learning curve is a steep one, and having a licensed Realtor, who is LEGALLY BOUND to watch your back is good to have, and well worth the $10-15K that of added expense. Between septic issues, radon, school districts you should really have an expert in your corner.... would you go to court without representation?

Having the experience from one sale, as artDDS suggests, does not make you an expert... having been in the business for 20 years, I've overcome many objections and held deals together, and I've seen deals die for trivial reasons.

A GOOD Realtor is an expert... like I assume artDDS is an expert dentist from the DDS in this name. I would never fill my own cavity or pull my own tooth, I pay good money for someone who knows A LOT more then I do to do that for me. Same with buying and selling homes.

Every deal has its potential pitfalls, and each is different. I personally have owned three primary residences... the first seller was being relocated due to job loss, the second was new construction and the third was a divorce. All three were different price points, and all three presented different challenges.... "You've seen one, you've seen them all" does not apply here. That's like saying that artDDS has the same issues with every mouth he sees, regardless of diet, nutrition or age of the patient.

[armx]

Heather-Lynn:

I don't know for sure but you have the experience of going through the motions of preparing the offer and submitting them a few times - and you MAY have been the beneficiary of how to fill out the offer and how to protect your interest.

So although the realtor you recommended to other people may not have been as helpful to you, three offer submissions did make you a veteran(lol) at preparing an offer ... And as to the inspectors and attorneys .. they have equal percentage of 'duds' as amongst the realtors ... I sincerely hope that you don't find that out while you are proceeding with your transaction this time around.

[davenj08]

Originally Posted by armx

So although the realtor you recommended to other people may not have been as helpful to you, three offer submissions did make you a veteran(lol) at preparing an offer ...

every realtor i know uses the same template for placing an offer. if that's the case, what does a realtor do additionally that can help his/her client when placing an offer? all offer forms already have contingencies for loan approval, attorney review, inspection, radon test, etc.

[davenj08]

Originally Posted by armx

daven:

You did not say whether the home is listed? Most likely not.

yes, i mentioned it in the very first line - "We recently placed an offer on a house listed on MLS without a buyer's side realtor."

[elflord1973]

Originally Posted by davenj08

We recently placed an offer on a house listed on MLS without a buyer's side realtor. The offer did not go through becasue of non-monetary issues but the seller told us that they would accept a 3% discount on our offer as we were without a realtor (i.e. our offer of 97k was equivalent to an offer of 100k from a buyer with realtor). Would that be true for all listings?

It is usually agreed that the seller pays the buyer's agent but it is actually the buyer who is paying the seller and the seller in turn paying the buyer's agent from the sale price. If we can cut the buyer's agent, we can pay 3% less outright and still the seller would get the same share from the sale after paying 3% to his agent. If the buyer can negotiate directly and deal with the inspector, attorney & lender himself, why not save 10-15k and not use a buyer's agent? I know most of the realtors on this forum may not like this question but it is could save a lot for prospective buyers.

Listing agent takes both commissions if the buyer doesn't have an agent.

Typically, the only case where the buyer can save the seller some money is where the the seller is a FSBO (e.g. the seller plays the role of the listing agent)

However, I think the availability of pricing and sales information on the internet is generally going to force realtors show that they can add value (via genuine expertise) rather than just sit back and take advantage of the fact that they are gatekeepers to information the buyer otherwise wouldn't have access to.

So I think the time has come for buyers and sellers to get a little tougher with realtors who might represent them and ask them serious questions about what services they offer.

[davenj08]

Originally Posted by elflord1973

Listing agent takes both commissions if the buyer doesn't have an agent.

that may be true but sounds very unfair. if a buyer is willing to do his own research and find a house by himself, why should he pay the seller's agent 3% in commission? the seller's agent gets his 3% commission from the sellers and that should be sufficient. the contract must be modified to accommodate for buyers who want to deal directly with the sellers / seller's agent.