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I hear everywhere that a seller's agent is working for the seller, not for the buyer.
So if you directly work with seller's agent, you are sure to get into trouble. Why is that ?
I have my inspector and my mortgage broker has their attorney and title check, etc. And I basically don't offer more than avg mkt price based on CMA (comparables)
I hear everywhere that a seller's agent is working for the seller, not for the buyer.
So if you directly work with seller's agent, you are sure to get into trouble. Why is that ?
I have my inspector and my mortgage broker has their attorney and title check, etc. And I basically don't offer more than avg mkt price based on CMA (comparables)
What else do I need to consider ?
The seller's agent is jumping up and down. And the agent's broker is gonna love you even more! Normally a commission gets split 4 ways. When you work directly with the seller's agent, he and his broker get to keep the whole commission. Kudos to the seller's agent!
His seller is his client. Client means that he has a fiduciary duty to that person, just like attorneys or doctors do with their clients/patients. Priviledged info and the whole enchilada. If the seller is highly motivated, you're not going to know that you could've offered 20% below market instead of 5%. If the seller's agent is good, he's going to be sure that you think you're getting a "steal of a deal" when you're really paying top dollar. He's also going to make sure that his seller has opportunity to keep your earnest money deposit if you mess up even a little bit. And he'll make sure any contingencies benefit his client, not the poor unrepresented guy on the other side of the deal.
So, since you've chosen to not have representation, you've saved yourself . . . time? . . . money? . . . and gained . . . peace of mind? No, wait a minute - remind again why this is a better deal for you.
Oh, btw, where are you getting your CMA? Hopefully it wasn't from the seller's agent. CMA's can be easily tweaked to favor a top dollar offer or a low ball offer, depending on which homes are included in the comps.
Jacob, I know you find it hard to believe that a buyer's agent would really work hard to get you the best deal. As many have mentioned, it's all about repeat and referral business for most of us. When I was able to get a client a $50,000 price reduction on a home purchased in our multiple-offer climate of 2 years ago, I was the one jumping up and down with glee. Those clients have recommended me several times since then. That's worth much more than a one-time commission increase of $1,000.
I hear everywhere that a seller's agent is working for the seller, not for the buyer.
So if you directly work with seller's agent, you are sure to get into trouble. Why is that ?
I have my inspector and my mortgage broker has their attorney and title check, etc. And I basically don't offer more than avg mkt price based on CMA (comparables)
What else do I need to consider ?
Jacob
nobody is saying you are sure to get in trouble if you deal directly with the sellers agent (99 out of 100 would treat you fairly)
but what we are saying (and read what just wrote about not offering more than avg mkt price) is this
you go out and find a listing you like
(how much time are you spending driving around or searching the mls)
you contact the sellers agent to see the property
you get some cma's (hopefully on your own)
you put your fair mkt offer in (sellers agent prepares your contract)
it is accepted
you find a lawyer for yourself and not somebody that is going to represent the mortgage co
you find a home inspector
so far everything is going fine
you are out of attorney review
you will schedule your home inspection in a week or two
(you better do it quick because the contract says it has to be done in 10 days )
you schedule a CO inspection (only if the CO is to the buyer)
lets say everything goes fine and you close with no problem
Now the question is why would you want to do all this instead of
having your own agent do it all for you
bottom line is this
If you had your own agent you would still be paying the fair mkt offer you put in
and not a penny more ,but your agent would do all the leg work and
make sure everything you had to have done was done in the time frame set forth in the contract
folks, I appreciate all your feedback. Pl. don't think I am a butthead. Please stay with me and help out a bit more..
only thing I am thinking is the seller's agent might be better off taking my offer without an agent and encouraging others who have agent representations to not put in an offer by giving them a higher number, by saying things like we have already rejected offers of x amount.
So far, with the agent that I have, I haven't found the agent giving me much inside scoop re: motivated or not.
Now, the early part I have already done myself, so ya, I have spent time, now looks like 3 things I need to do :
a) find a good inspection guy
b) find an attorney
c) find a mortgage
but i think i hear you guys, may be i should find a better agent.
Im makin the move to the USA soon , i read all sorts of things about agents n so on. Over here we dont have a buyers agent as such. So my question is what do they charge for the service.
I hear everywhere that a seller's agent is working for the seller, not for the buyer.
So if you directly work with seller's agent, you are sure to get into trouble. Why is that ?
I have my inspector and my mortgage broker has their attorney and title check, etc. And I basically don't offer more than avg mkt price based on CMA (comparables)
What else do I need to consider ?
Where did you get the CMA? Why would you want the 3% or so (1/2) to go to the seller's agent when you could have your own at no cost to you? Who will be present at the inspection to ensure that nothing is overlooked? Who will give you a sales history on the home? A Buyer's Agent works FOR YOU; and, it's free to you. Why would you not want it?
Im makin the move to the USA soon , i read all sorts of things about agents n so on. Over here we dont have a buyers agent as such. So my question is what do they charge for the service.
if you use an agent to find you a home
he gets paid out of the listing agents commission
for instance
jacob list his 3bedroom 1 1/2 bath house for sale at 300,000 with xzy broker
he agrees to pay the listing agent a fee of 5% for his services ,
On the listing contract there is a cooperating broker field that they will tell Jacob about, What this says is how much the listing broker will pay out of his 5 % to any broker that brings in a buyer (it is usually half minus mls fees)
His listing agent will advertise in the papers and on the mls put up signs and whatever else he does
You happen to be walking by my office and stop in to
see if i can help you find a home with at least 2 bedrooms for under 350,000
I will bring up all the listings that are out there that have 2 bedrooms or more that meet your requirements , we will look at the neighborhood to make sure it is to your liking. we will view all the pictures and virtual tours available and only make appointments (if needed) to see those that you like ..
We see Jacob's house and you love it and agree to purchase it at his price
In a perfect world everything goes fine and it is closing day
Out of the 300,000 ,Jacob has to pay the listing broker 5% or 15,000
since the listing agent and Jacob agreed to pay cooperating broker 1/2
the lawyer will have the checks made out 7,500 to xyz broker and 7,500 to my Agency as the buyers agent
I hear everywhere that a seller's agent is working for the seller, not for the buyer.
So if you directly work with seller's agent, you are sure to get into trouble. Why is that ?
I have my inspector and my mortgage broker has their attorney and title check, etc. And I basically don't offer more than avg mkt price based on CMA (comparables)
What else do I need to consider ?
I would say that by cutting out the middle man you stand to save yourself some money as I think that you could negotiate the price of the home based on the now increased commission that stays in the listing agents pocket. in other words. say the listing agent stands to make another $7,000 by you now bringing another agent to the table. you could ask the agent to reduce the home price by say $4,000. win win for all. agent still makes additional $3K and you get a price cut of $4k. the seller gets that $4K anyway in the sale instead of another agent. everyone is happy.
and it does not hurt if you have a few friends who need to sell thier home
Very true indeed....
Friends become clients and clients become friends
and friends refer friends who become clients who become friends
so on and so on
As long as you treat clients and other agents fairly, honestly and with respect they will feel comfortable dealing with you and gladly recommend you to their friends
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Seller's Agent is Gonna Love You
