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Does anyone have any insight into negotating something other than the standard 3% commission with their realtor when they are the buyer? My husband and I are relocating to San Antonio and have already done quite a bit of leg work. We've narrowed down our list to about 10 houses we'd like to see, and can probably narrow it down even further after we come down again and drive by some of the ones we've only seen online. We're hoping to move quickly, and basically just need someone to let us into a few houses and help negotiate the offer. Based on our price range, it doesn't seem like the amount of work we need done justifies a $12-18k fee. I know that the seller will pay the fee, but that seems like we're missing out on several thousand dollars that we could use to negotiate the price downwards.
We're definitely willing to pay a few thousand, but we don't feel comfortable with the idea of paying someone $12-18k for what will most likely be a couple of days work. Does anyone have experience negotiating a lower rate when they are buying a home (excluding using the same agent to buy and sell a home, as we will use someone in Dallas to sell our current home), or know of any realtors who would consider this?
Just start calling and offering them the money. The more independent ones, not tied to a big office set there on rates. If they own the office, or firm so to speak, they can take whatever rate they choose. You can negotiate any rate or amount you can get. Good luck. If you want the names of a couple, DM me, and Ill look locally for you if that will help.
What you're not realizing is that you're not going to be responsible for paying the buyer's agent fee. The seller pays that fee. When someone lists a house, they usually pay out 6% at closing to the listing agent. The listing agent splits that fee with the buyers agent (3 and 3). So even though the buyer agent is working for you, it's not costing you anything.
In addition, getting the buyer agent to accept less from the listing agent isn't going to help your negotiations either. What will happen is that the listing agent will just make a little more. A good agent will get you the house and keep you within your budget.
Helping someone buy a house is much more than opening a few doors. Once the contract is signed, that's when your realtor really goes to work. I spend countless hours negotiating repairs, keeping lenders in check and on task so my buyers don't get screwed, making sure that the contract is followed to a "t" and making sure that the contract is written in such a way that my buyers are 100% protected if something goes wrong.
you can just deal with the realtor who liste the home you want. they are the ones who will deal.
While this is true, that Realtor can only write the offer for you. They represent the seller and won't help you at all in negotiations. Their job is to get the maximum price for the home, which will come at the buyer's expense. On my listings, when people come to me without a realtor, I know that I can write the contract in a way that it will heavily favor my sellers.
What you're not realizing is that you're not going to be responsible for paying the buyer's agent fee. The seller pays that fee. When someone lists a house, they usually pay out 6% at closing to the listing agent. The listing agent splits that fee with the buyers agent (3 and 3). So even though the buyer agent is working for you, it's not costing you anything. In addition, getting the buyer agent to accept less from the listing agent isn't going to help your negotiations either. What will happen is that the listing agent will just make a little more. A good agent will get you the house and keep you within your budget.
That's not exactly true. If you negotiate with your buyer's agent to accept a reduced fee, and the sellers have already signed a 6% contract with their listing agent, you can negotiate with the sellers to rebate you that 1% - assuming that the listing agent will agree to give them back that 1% that they're not having to pay the buyer's agent. It gets complicated, but if you're in a cash crunch it can be worth discussing with all parties involved.
That said, I fully concur with:
Quote:
Originally Posted by kevcrawford
Helping someone buy a house is much more than opening a few doors. Once the contract is signed, that's when your realtor really goes to work. I spend countless hours negotiating repairs, keeping lenders in check and on task so my buyers don't get screwed, making sure that the contract is followed to a "t" and making sure that the contract is written in such a way that my buyers are 100% protected if something goes wrong.
If you're working with a good agent, they deserve every penny of their 3%. When I bought my house, I had to be out of town at a conference when we were in the final days of the option period and we needed to get estimates for repairs in order to do some final negotiating. My agent called in several service companies, waited while they got estimates, helped me evaluate what the impact would be and advised on new pricing for the house. Because I'm self-employed and mortgages can be complicated when you own your own business, he also put me in touch with several lenders and brokers he knew would work extra hard for me.
Now, if he had just left me to deal with this stuff on my own (as I've experienced with realtors in the past) then I can see why you'd question the value of the full 3%. But 3% is worth all the assistance you need with things that have nothing to do with locating a house, plus the value of a fully impartial advocate who will ensure you don't end up with your a$$ hanging out in the breeze because you didn't think to ask about some obscure detail in the contract. Bad/lazy realtors are hardly worth a dime, but good ones are worth far more than that 3%. (oh, and most realtors don't actually get that full 3% either. Most have to split it with their own broker, so the average buyer's agent may only take home 1.5%)
sometimes ppl have no idea what a property disclosure is or a lead based paint rider or an addendum - do what you want, when it goes sour, it goes sour, no malice intended at all..............................everyone has their own agenda and hopefully it will work for you
you can just deal with the realtor who liste the home you want. they are the ones who will deal.
If you are dealing with the listing agent, not in an intermediary or dual agency situation, you have no representation - the person you're dealing with is bound, by law, to represent the seller's interests, not yours.
While this is true, that Realtor can only write the offer for you. They represent the seller and won't help you at all in negotiations. Their job is to get the maximum price for the home, which will come at the buyer's expense. On my listings, when people come to me without a realtor, I know that I can write the contract in a way that it will heavily favor my sellers.
It is always possible to negotiate the fee a BA would recieve- that would be written into the Buyer's Agency agreement.
It is not possible to interere with the listing brokerages agreement with the seller.
I believe that 1/3 of my work is finding the right property for my buyer - 2/3 is negotiating and getting to closing. A quarter of my deals fail to close after acceptance of the first contract, mostly due to property condition. So, I get to work 1.5 times for the 1 paycheck, four months later.
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