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I know the normal process is you hire a realtor, that person tries to finds houses for you, takes you around, etc. However, I have found a home I want to buy - now I am in the process of contacting a realtor. I don't want to do the paperwork myself, I want a professional. However, I'm thinking that the realtor should give me a bit of a break on commission fees, since he didn't have to do any "leg work" for me. Does that make sense?
If this happens at all, do realtors lower their fees? Is that heard of? (I have no clue about this..) Maybe lower the commission by 1% of whatever is normal? What would an acceptable % of commission be for something like that? If you are a realtor - would you do that for a client?
The commission is part of the contract created between the seller and THEIR agent. As part of the agreement to participate in the Multiple Listing Service (and to better serve their seller) - the listing agent typically offers a cooperative commission to the agent representing the buyer.
The agent representing the buyer (often called the "selling agent") receives their commission through their brokerage and is limited on whether or not they can rebate any of that commission to their buyer(this depends on your state - and it in Oregon you cannot legally do so without some major legal hoop jumping).
All that being said - while it is true that many agents invest a lot of time and money in helping their clients find the home (and that may be used by some to justify their commissions), in this current age of information technology its not always the case anymore. In fact, the value that a GREAT agent brings truly only begins once you start the negotiation process - and once the offer is accepted, helping the buyer to navigate the transaction, and work to protect the buyer's best interests throughout.
If you've ever studied hard for an exam and then complained, why did I study so hard...it was EASY then you may understand the analogy of how some people have come to believe that a real estate transaction is EASY...generally its because of the hard work and expertise of the professionals involved. Much of which you don't see.
I was told that transactions with a real estate professional on both sides tend to close at a rate of about 1/3 more frequently, and with fewer major issues than those either between owners and buyers (without REALTORS), or where an agent is only representing the seller.
You don't pay anything nor do I feel you should expect them to lower fees. They'll be paid the compensating commission by the seller so it doesn't actually cost you anything out of pocket. Honestly, finding the house is normally the easy, low risk part anyway. Value comes from the contract to close phase.
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?
All this does is allow the listing agent to double his paycheck. The point I assume was to get a price break on the realtor fees. Which you MAY be able to do by contacting the listing agent but I wouldn't count on it.
Interview several. Choose the best one available. - The other side is an owner/agent, don't look to save money on the commission, (that's between the seller and the coop agent) just to let the other side walk all over you.
Get your agent to write a lower offer, in an amount close to what you would want them to rebate you - or more - and make the seller swallow it.
I assume you are talking about a buyer's agent. It is a good idea to have someone working on your behalf, especially if it's an owner/agent selling the house. However YOU don't pay him any commission - the seller does. Maybe you can get him to lower his commission a little (and take it off the price) but truthfully, there's a lot of work between offer and closing - it's not like "you have done all the hard work" looking at houses.
I know the normal process is you hire a realtor, that person tries to finds houses for you, takes you around, etc. However, I have found a home I want to buy - now I am in the process of contacting a realtor. I don't want to do the paperwork myself, I want a professional. However, I'm thinking that the realtor should give me a bit of a break on commission fees, since he didn't have to do any "leg work" for me. Does that make sense?
If this happens at all, do realtors lower their fees? Is that heard of? (I have no clue about this..) Maybe lower the commission by 1% of whatever is normal? What would an acceptable % of commission be for something like that? If you are a realtor - would you do that for a client?
Any thoughts would be appreciated, thank you.
"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.
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