Realtor commissions in Indiana... (sales, real estate, broker)

[backtochitown]

If I find a home on my own and wish to NOT use a buyer's agent (yes, I know all the things an agent can help with but I know the area well, know how to negotiate, etc.) will the selling agent still get all the commission (6% typically) or can they just take 3% and I can effecively take another 3% off the cost?

Thanks.

[rrah]

The contract for the agent's commission is between the home seller and the broker. You may not legally interfere with that contract. I once had a young man try to get me to knock off 3% of my commission when he wanted to buy a house I had listed. He was pretty insistent I do this. I did not and told him my contract with the seller was none of his business. The contract is actually between the broker and the seller. The broker is not necessarily, and often not, the agent. In order to lower the commission that much I would have had to have permission from my broker. He would have laughed in my face.

Because he had no other representation I had to write the offer for him. I had to present the unrealistically low offer to the seller and then present the seller's counter offer back to him. This went back and forth numerous times. The buyer was offering about 75% of the value before any market crash (which didn't really happen in B-ton any way). He wanted a deal and wasn't getting it from the seller or me.

The agent, no matter, will still be required to do the work of representing you and the seller. Twice the work whether you know it or not.

I'm so HAPPY to be out of real estate. I miss my clients and a few things about it, but thanks for the reminder of one thing I don't miss.

You cannot interfere with the contract between the seller and the agent. It's none of your business. The agent will still be required to do the work as if representing buyer and seller if you have no one representing you.

[backtochitown]

Originally Posted by rrah

The contract for the agent's commission is between the home seller and the broker. You may not legally interfere with that contract. I once had a young man try to get me to knock off 3% of my commission when he wanted to buy a house I had listed. He was pretty insistent I do this. I did not and told him my contract with the seller was none of his business. The contract is actually between the broker and the seller. The broker is not necessarily, and often not, the agent. In order to lower the commission that much I would have had to have permission from my broker. He would have laughed in my face.

Because he had no other representation I had to write the offer for him. I had to present the unrealistically low offer to the seller and then present the seller's counter offer back to him. This went back and forth numerous times. The buyer was offering about 75% of the value before any market crash (which didn't really happen in B-ton any way). He wanted a deal and wasn't getting it from the seller or me.

The agent, no matter, will still be required to do the work of representing you and the seller. Twice the work whether you know it or not.

I'm so HAPPY to be out of real estate. I miss my clients and a few things about it, but thanks for the reminder of one thing I don't miss.

You cannot interfere with the contract between the seller and the agent. It's none of your business. The agent will still be required to do the work as if representing buyer and seller if you have no one representing you.

Thanks and I know some people can be difficult but we are knowledgeable cash buyers and we will still want a 'deal'...and will be buying a pretty expensive place...an extra 3% means almost 20K in commissions for (honestly) maybe a few hours of 'work' on our behalf.

The contract may not be directly my business but if I know something is 'built in' already and I'm indirectly paying for it I will make an offer based on not having to pay it...and having to pay it will drive me away from the realtor RE world and back to just having a custom home built on a direct developer purchased lot so I won't have to deal with essentially paying a realtor a lot of money for little value on my side.

It is all about value to me and I know how realtors scratch to provide value because it is getting harder and harder for them to do so these days with the amount of information on the internet...sort of like what happened to travel agents...I just don't see the value in either unless I really don't know the area I'm going to visit or buy in so why should I pay for it?

[richb]

Originally Posted by backtochitown

It is all about value to me and I know how realtors scratch to provide value because it is getting harder and harder for them to do so these days with the amount of information on the internet...sort of like what happened to travel agents...I just don't see the value in either unless I really don't know the area I'm going to visit or buy in so why should I pay for it?

Where do you think that information on the internet comes from?

Answer: From agents doing their jobs. That's the value you are getting even if you don't see it, its there. Just because its on the internet, its not coming from thin air. I am not trying to be snotty, but you aren't going to see most of the activity we do to sell real estate, as we work to make a complex thing seem seamless.

My suggestion to you, if you are a informed and frequent buyer, you may be better off getting your own real estate license and becoming your own buyers agent. Some real estate investors are their own licensed agents. You can write your own offers and do your own negotiations. That's the only way your are going to "save" that 3%.

You can't expect people to work for free.

Oh, one more thing, new home builders won't give you the "savings" from selling without an agent. They have to pay someone to do the work of selling that house whether its themselves, their own sales staff or an agent.

[backtochitown]

Originally Posted by richb

Where do you think that information on the internet comes from?

Answer: From agents doing their jobs. That's the value you are getting even if you don't see it, its there. Just because its on the internet, its not coming from thin air. I am not trying to be snotty, but you aren't going to see most of the activity we do to sell real estate, as we work to make a complex thing seem seamless.

My suggestion to you, if you are a informed and frequent buyer, you may be better off getting your own real estate license and becoming your own buyers agent. Some real estate investors are their own licensed agents. You can write your own offers and do your own negotiations. That's the only way your are going to "save" that 3%.

You can't expect people to work for free.

Oh, one more thing, new home builders won't give you the "savings" from selling without an agent. They have to pay someone to do the work of selling that house whether its themselves, their own sales staff or an agent.

Nothing against you doing your job and I don't expect anybody to work for free...but the world is changing and every profession is having a harder time trying to add more value and differentiate themselves so people will want to pay them.

Any sales deal can be 'complex' but I have bought/built/sold several homes on my own and the most important thing is finding legitimate buyers and reasonable sellers. That is what good realtors do best...network and find good buyers for specific properties and educate sellers to market realities.

I agree most people should use realtors but I'm not one of them.

I was actually just looking into getting an RE license for that reason, thanks.

[richb]

Originally Posted by backtochitown

I was actually just looking into getting an RE license for that reason, thanks.

Good, I think you will find it will make buying smoother if you had your own license. Good luck!