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Do you have to use a real estate agent to make an offer on a property? Meaning is there any reason a buyer can't fill out and give the sellers agent an offer form, or use the sellers preferred contract.
Also, what happens to the commission if a buyer proceeds without an agent? Meaning couldn't the buyer request a 3% reduction in price by acting as their own agent?
From what I've read here, nothing prevents you from not being represented by your own agent. However, the listing agent is entitled to the entire commission and certainly does not have to cut a break on commission at all -- in fact, since there is no buyer's agent to do some of the work of closing, the listing agent's work increases, so they are justified in keeping the entire amount (again, from what I've read here -- YMMV).
If there was no break on commission I would always go with having a buyer's agent to look out for my interests. Always.
If you do not have an agent , then the seller agent gets all 6%. They will be very reluctant to negotiate the commission. So, you will have to be rather persistent and tactful. the whole thing will be hard for you and worthless if you do not have experience.
Do you have to use a real estate agent to make an offer on a property? Meaning is there any reason a buyer can't fill out and give the sellers agent an offer form, or use the sellers preferred contract.
Also, what happens to the commission if a buyer proceeds without an agent? Meaning couldn't the buyer request a 3% reduction in price by acting as their own agent?
Thanks.
The contract is more than mere paperwork, as a contract it binds you to a set of parameters which you should understand.
You certainly have the right to fill out an office supply form, or the seller's form, if you want to do so. Generally it is advisable that you understand the meaning of the provisions and commitments in the contract you sign, and also the roles of all parties involved.
I would strongly recommend that you have an attorney review the offer before you take it to contract if you are planning to proceed without a real estate agent on your side.
It is not necessarily a realtor per se, that one needs. What one must have is representation that has a fiduciary responsibility to look out for your best interests. That could be a realtor, or an attorney. Even in a sale w/ no realtor you need an attorney to make sure everything is kosher.
One other thing not mentioned by Mike or KonaKat is the buffer a buyer's agent will provide between you and the seller's agent. The listing agent is, by contract, responsible for the sellers best interests. He/she will do whatever and find out whatever information they can to improve the net for the seller. Unless you are knowledgeable and a good negotiator you are likely to give up information that may put you in a more vulnerable position in the negotiation process. The buyer's representation will remain objective.
If the home is listed in the mls and you don't have an agency agreement with a buyers agent than the agent is working for the seller. If you have the listing agent write up the contract than they are acting as a dual agent. In this case all they can do is write up the contract but not provide you any other detail to help you make an offer on the home. In many states dual agency is not allowed. In many others where it is allowed, some agents rather not get involved with both sides.
If the home is listed in the mls and you don't have an agency agreement with a buyers agent than the agent is working for the seller. ...
That may depend on the state. In some (like mine), if your actions are shown to be representing the buyer, then you are their agent even without a written agreement, and do not work for the seller (unless acting as a dual agent). We do require an agency designation to be indicated in our association purchase contract, and brokers require a formal agency disclosure to be signed (not an employment agreement).
The OP can ask the listing agent for a reduction in commission if acting for themselves, but the agent does not have to agree. The listing agent may also have a variable commission agreement with the seller where they will reduce commission if they bring the buyer.
You are much better off using a lawyer to protect your rights during the buying process. The lawyers will charge you for their time but they aren't in it for a commisson so be smart. Also, if you read other posts on this topic you can see how they are when dealing with them.
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