If I found a house, do I need a realtor to make offer ? (documents, agent)
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I find all the houses I want to see, my realtor is a friend...I bring him a long so he can make some money on his commission. He is a lazy realtor though and makes mistakes in his contracts that I catch....yes, ME. Little things like that. Anyhow, I want to make an offer on a house. Can I just contact the sellers realtor and put in an offer ? I have heard that since the commission only goes to the sellers realtor now, that the owners can negotiate more on the price since they don't have pay another realtor involved. The less realtors = more money for the seller which means more of a possible discount for me. Right ?
hey dude, not necessarily so. you go in with NO representation. NO idea what the comps are and what you should negotiate for.. etc. and the work really starts AFTER the offer is accepted.
Now, the commission structure is between the seller and the sellers agent. Why should the seller pass on the savings to you? why should the agent allow it? It has already been set in the listing agreement what the seller will pay the agent. If the agent is now doing the work for both the seller and the agent, he/she doesn't have to pass his commission on to either one of you....
Do yourself a favor and go get a GOOD real estate agent, have them pull comps and help you craft an excellent offer. One that would be good for everyone, and get you the home you want.
Hey dude, I just reread my answer and I want to make sure ya'll know I am not being a smart aleck... I just see so many come in to make an offer and you actually pay MORE than you should. The home could be over priced. You want the best deal possible... and there is NO guarantee you will get the benefit of the commission currently offered to a buyers agent.
Your location is Coral Springs, are you purchasing in Florida? If so, then Shellytc is incorrect. When you call the listing agent, ask if they have that listing as a transaction broker. If so, then you do have representation, someone that legally has to treat both you and the seller fairly and honestly and not reveal anything about your situation you don't want them to reveal.
If you know so much, you can use it to your advantage....if you think you need advise than use a buyers agent or a real estate lawyer.
I buy the houses myself without a realtor and I'm very confident doing so and I learned that I can easier get prices down since there is only one agent involved.
I find all the houses I want to see, my realtor is a friend...I bring him a long so he can make some money on his commission. He is a lazy realtor though and makes mistakes in his contracts that I catch....yes, ME. Little things like that. Anyhow, I want to make an offer on a house. Can I just contact the sellers realtor and put in an offer ? I have heard that since the commission only goes to the sellers realtor now, that the owners can negotiate more on the price since they don't have pay another realtor involved. The less realtors = more money for the seller which means more of a possible discount for me. Right ?
If you don't have confidence that your friend is a competent Realtor then you should keep the relationship as a friendship and keep business out of it.
You can work directly with the seller's broker. Be sure you understand how the seller's broker is representing the seller. If they are working as a transaction broker then they should be working with both sides without representing either sides interests.
Your incorrect about the "less realtors = more money for the seller" the contract with the listing broker is probably a fixed percentage of the sales price. So if you don't have your own Realtor, the seller's broker will not be splitting the total sales commission with another broker.
While you don't need a Realtor to make an offer, I would recommend that you find a Realtor with the experience to represent your interests. A Realtor that will do what is necessary to get the contract to closing. Most of the problems in a real estate transaction occur after the contract has been signed. Without the experience of working through the issues, most people can't see the significance of many of the terms of the contract. There are 2 primary contracts that are used in Florida - which one would you use and why? Would you elect to pay for and choose the title company? How could that choice help or hurt you? Would you be making an "as is" offer or an offer where the seller warranties the house? I could go on with stories of what I've seen and heard in my years of working as a Realtor here in Florida, but honestly most real estate transaction do involve willing and honest sellers and willing and honest buyers. And despite what you may hear, honest and hard working Realtors.
I find all the houses I want to see, my realtor is a friend...I bring him a long so he can make some money on his commission. He is a lazy realtor though and makes mistakes in his contracts that I catch....yes, ME. Little things like that. Anyhow, I want to make an offer on a house. Can I just contact the sellers realtor and put in an offer ? I have heard that since the commission only goes to the sellers realtor now, that the owners can negotiate more on the price since they don't have pay another realtor involved. The less realtors = more money for the seller which means more of a possible discount for me. Right ?
A couple of things.
First, you are never required to hire a real estate agent to represent you if you don't want one. Yes, you can contact the sellers agent and have them write your offer for you, and present it to the seller.
Second, having one less agent in the process does NOT necessarily mean more money for the seller. The fee to be paid to the listing agent is agreed to before the property is put up for sale, and does not change based on the number of agents in the process. That listing agent either pays out part of his fee to an agent who brings a buyer, or keeps it all for himself. (Actually, that's all to the BROKER, but let's not worry about that distinction for right now.)
The question you need to ask yourself is; Can I somehow convince the seller to take the offer I want to make? Remember, the agent is not going to help you in that negotiatiating process, as he is the agent of the SELLER. Is it possible you can convince the sellers agent to cut his commission in order to make the deal work? Sure, it's possible. I'm not sure how likely it is. Can you save enough money to make up for the additional time & effort you will have to put in, and for the lack of represeantation you will have? Again, sure it's possible, but I don'r know how likely. That depends on you.
And for the record, a GOOD real estate agent can help you to save time effort & money. The guy you say "is a lazy Realtor," who "makes mistakes in his contracts" is probably not going to save you much if anything. If you are going to look for someone to represent you, don't let it be this friend. If he screws something up for you, you'll have a screwed up transaction AND you'll lose a friend.
Last edited by Bill Keegan; 09-06-2008 at 08:10 AM..
Reason: Added last paragraph.
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