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Old 02-23-2009, 08:59 AM
 
Location: Central Texas
19,885 posts, read 36,412,001 times
Reputation: 21327

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Quote:
Originally Posted by Beena View Post
"Seller pays the commissions" nonsense has gotten really old. File that with "now is a great time to buy".

The truth is that you should get a real estate attorney to help you for a flat fee, and then take the 3% you saved the seller and negotiate the price down. The seller will be grateful to split that with you.
Normally when a property is a FSBO (and in this case it's an owner/agent), the seller is doing that because they want to save on the commission. So it's not as automatic as all that.

Also, in this case, since the seller is an agent, the buyer really needs representation of some kind in more than writing up the contract and advising them on the legalities - they'll need someone on their side to aid them with negotiations and provide comps and herd all those cats that have to all be at closing at the same time. Unless they're experienced in real estate transactions, of course.
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Old 02-23-2009, 09:01 AM
 
Location: Salem, OR
13,749 posts, read 31,584,066 times
Reputation: 12119
You can also look for a flat fee agent, or a real estate consultant that does hourly rates. It would be a lot cheaper as well.
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Old 02-23-2009, 09:06 AM
 
3,191 posts, read 8,040,373 times
Reputation: 2174
IMHO- if the seller is the owner/agent you might really consider a 'buyers' agent for your self. sometimes those owner/agents can be real PITA's ( no offense to OUR good agents on here!!)

Otherwise I would say get you a RE attorney to review the paperwork and save some on commission.


How is the price of the home? Does it look like the 'normal' commission has been figured in , so to speak, or is the price lower, maybe already reflecting some saving?
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Old 02-23-2009, 10:33 AM
 
Location: Salem, OR
13,749 posts, read 31,584,066 times
Reputation: 12119
Quote:
Originally Posted by crazyma View Post
IMHO- if the seller is the owner/agent you might really consider a 'buyers' agent for your self. sometimes those owner/agents can be real PITA's ( no offense to OUR good agents on here!!)
I think some of the worst FSBO pricing I have seen has been by former real estate agents...
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Old 02-23-2009, 02:11 PM
 
26 posts, read 80,869 times
Reputation: 14
Default Agree

Quote:
Originally Posted by trishguard View Post
If you found the house, why would you involve a realtor? Can't you just get a real estate attorney and have him help you with from offer to closing?
I totally agree
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Old 02-23-2009, 08:43 PM
 
Location: Albany, OR
540 posts, read 1,896,665 times
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Quote:
Originally Posted by Beena View Post
"Seller pays the commissions" nonsense has gotten really old. File that with "now is a great time to buy"..
The fact that the seller pays the commission is a fact of contract law...the commission is laid out in the contract (the listing agreement) between the seller and the listing agent. Outside parties (like the buyer have no standing to try to modify that contract (I believe its called tortuous interference with a contract).

That said, I'm assuming that you are making counter-argument that the buyer is paying the commission (indirectly) by virtue of it being included in the total price being paid. So, what about when the seller has to bring a check to the closing table to cover all the closing costs and fees? Does the logic still hold?

The point is that the negotiations are about the selling PRICE and terms. Either the seller will sell - and the buyer will buy at a given price point or they won't. How much commission that price includes is irrelevant to the buyer! Negotiate another 3% off the price if you can...Why are you trying to make it about the commission, and why do you (as the buyer) care what the agent gets paid? If you choose NOT to be represented in the transaction - it's you're choice. But if having representation (that does not cost you any MORE or LESS) can help you negotiate better, offer you some protections in the execution of the contract, and provide advice and counsel, as well as access to other industry professionals who may help you as well - why not? You're choice.
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Old 02-23-2009, 09:21 PM
 
Location: Columbia, SC
8,855 posts, read 17,453,334 times
Reputation: 6225
Quote:
Originally Posted by DavePautsch View Post
The fact that the seller pays the commission is a fact of contract law...the commission is laid out in the contract (the listing agreement) between the seller and the listing agent. Outside parties (like the buyer have no standing to try to modify that contract (I believe its called tortuous interference with a contract).

That said, I'm assuming that you are making counter-argument that the buyer is paying the commission (indirectly) by virtue of it being included in the total price being paid. So, what about when the seller has to bring a check to the closing table to cover all the closing costs and fees? Does the logic still hold?

The point is that the negotiations are about the selling PRICE and terms. Either the seller will sell - and the buyer will buy at a given price point or they won't. How much commission that price includes is irrelevant to the buyer! Negotiate another 3% off the price if you can...Why are you trying to make it about the commission, and why do you (as the buyer) care what the agent gets paid? If you choose NOT to be represented in the transaction - it's you're choice. But if having representation (that does not cost you any MORE or LESS) can help you negotiate better, offer you some protections in the execution of the contract, and provide advice and counsel, as well as access to other industry professionals who may help you as well - why not? You're choice.
I wish I could rep ya!
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Old 02-23-2009, 09:22 PM
 
Location: Columbia, SC
8,855 posts, read 17,453,334 times
Reputation: 6225
Quote:
Originally Posted by carlota01 View Post
I totally agree
Finding a home is the easy part. Contract to close is where having a great realtor shows up.
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Old 02-25-2009, 08:51 AM
 
6 posts, read 6,708 times
Reputation: 10
CristenS,

You can look for an agent that will give you 1/2 of his commission back. When we sold our home 3 years ago, we paid 4.5% of total commission. 3% to the buyer agent and our agent received 1.5%. He sold our house for asking price. Now, we are looking to buy and our agent (a broker) will give us back 1.5% from her commission. Call your local realtors and asked them for agents that will do this. They are out there but go for the smaller realty firm. The big one as Remax, Coldwell Bankers are less likely to do this for their clients. Good luck home hunting. Hope this will help.
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Old 10-15-2010, 08:43 AM
 
85 posts, read 188,779 times
Reputation: 56
Quote:
Originally Posted by DavePautsch View Post
The fact that the seller pays the commission is a fact of contract law...the commission is laid out in the contract (the listing agreement) between the seller and the listing agent. Outside parties (like the buyer have no standing to try to modify that contract (I believe its called tortuous interference with a contract).

That said, I'm assuming that you are making counter-argument that the buyer is paying the commission (indirectly) by virtue of it being included in the total price being paid. So, what about when the seller has to bring a check to the closing table to cover all the closing costs and fees? Does the logic still hold?

The point is that the negotiations are about the selling PRICE and terms. Either the seller will sell - and the buyer will buy at a given price point or they won't. How much commission that price includes is irrelevant to the buyer! Negotiate another 3% off the price if you can...Why are you trying to make it about the commission, and why do you (as the buyer) care what the agent gets paid? If you choose NOT to be represented in the transaction - it's you're choice. But if having representation (that does not cost you any MORE or LESS) can help you negotiate better, offer you some protections in the execution of the contract, and provide advice and counsel, as well as access to other industry professionals who may help you as well - why not? You're choice.
You are either being intentionally obtuse, or you fail at math. The 3% absolutely is relevant to the buyer and the seller. If the seller sees 2 offers for the same amount, but 1 offer is from a buyer with no broker, the seller would be able to pocket 3% more if they accept that offer vs. the other offer.

"Oh noes....there's a c,c,c....contract in place and the seller owes 6% regardless!!"

Commissions are absolutely factored into a buyer's purchase price. The fact real estate agents fail to see that is either disingenuous or ignorance, and neither is acceptable.
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