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Can you not read? We aren't talking about a commission, just the same amount of $ that the commission would have been if there was a buyer's agent involved. Instead, that $ will go either to reducing your offer by 3% or getting the seller to pay 3% of the purchase price towards closing. Just make sure you point out to the seller/selling agent the reason why you have chose to not work with a buyer's agent, they will know and definitely understand.
Apparently you don't understand the previous statements that you're not allowed to interfere with a contract. The commissions is a contract between the seller and their broker/agent for a specific amount. The seller cannot then decide to reduce the commission to his broker in order to kick it back to the buyer for closing costs or price reductions. There's a CONTRACT in place and the listing agent will receive the full commission that was agreed to within their contract.
Can you not read? We aren't talking about a commission, just the same amount of $ that the commission would have been if there was a buyer's agent involved. Instead, that $ will go either to reducing your offer by 3% or getting the seller to pay 3% of the purchase price towards closing. Just make sure you point out to the seller/selling agent the reason why you have chose to not work with a buyer's agent, they will know and definitely understand.
Some listing agents will come down in commission and some will not. Just because a buyer wants that 3% doesn't mean they are going to get it. Sometimes they will and sometimes they won't.
I also think the OP needs to be clear that the money can't be used for a down payment.
Can you not read? We aren't talking about a commission, just the same amount of $ that the commission would have been if there was a buyer's agent involved. Instead, that $ will go either to reducing your offer by 3% or getting the seller to pay 3% of the purchase price towards closing. Just make sure you point out to the seller/selling agent the reason why you have chose to not work with a buyer's agent, they will know and definitely understand.
Shouldn't you be off taking a real estate licensing class or something?
Some listing agents will come down in commission and some will not. Just because a buyer wants that 3% doesn't mean they are going to get it. Sometimes they will and sometimes they won't.
I also think the OP needs to be clear that the money can't be used for a down payment.
It doesn't necessarily have to go to down payment. I'm just trying to reduce my closing cost. In a down market there's a good chance I can have the seller pay part or all of the closing cost correct? Without a buyer's agent, that's less closing cost I have to ask the seller to pay. I can use what would typically would go to the buyer agent into negotiating a cheaper purchasing price. I'm aware the selling agent can say go stuff it. I just want to create more leverage for myself.
Thanks for all the replies. A final decision hasn't been made yet. But I just want to see what my options are. In the end I may get an agent just to ease my anxiety. Still trying to decide.
It doesn't necessarily have to go to down payment. I'm just trying to reduce my closing cost. In a down market there's a good chance I can have the seller pay part or all of the closing cost correct? Without a buyer's agent, that's less closing cost I have to ask the seller to pay. I can use what would typically would go to the buyer agent into negotiating a cheaper purchasing price. I'm aware the selling agent can say go stuff it. I just want to create more leverage for myself.
Thanks for all the replies. A final decision hasn't been made yet. But I just want to see what my options are. In the end I may get an agent just to ease my anxiety. Still trying to decide.
Yes seller paid closing costs is very common. Your closing costs have nothing to do with real estate commissions unless you have a buyer agency agreement with a real estate agent. Typically real estate commissions are a seller closing cost, not a buyer closing cost.
If you do get an agent pick well. Folks that are successful representing themselves in the future, or sell homes on their own have typically been through the process before so they understand how it works.
It doesn't necessarily have to go to down payment. I'm just trying to reduce my closing cost. In a down market there's a good chance I can have the seller pay part or all of the closing cost correct? Without a buyer's agent, that's less closing cost I have to ask the seller to pay. I can use what would typically would go to the buyer agent into negotiating a cheaper purchasing price. I'm aware the selling agent can say go stuff it. I just want to create more leverage for myself.
Thanks for all the replies. A final decision hasn't been made yet. But I just want to see what my options are. In the end I may get an agent just to ease my anxiety. Still trying to decide.
With a buyer's agent you can get them to go down 5% and still get them to pay some if not all of the closing cost. You are putting yourself in a very bad situation if you go this alone especially since you are a first time home buyer. Do not think for a second that the listing agent is going to give up any of their commission just because you are nor being represented. This is what agents look for. They are either going to get you to sign with them and act as a dual agent or they are going to be representing the seller and take you to the cleaners. Either way they are keeping the whole commission. You need guidance it is not worth it to you to not get an agent to represent you.
The commission is set when the house is listed, and all of it goes to the listing broker, who agrees through the MLS to pay a percentage to the selling broker. Why would the listing agent kick part of it back to the buyer directly if he/she now has to deal with an unrepresented buyer and will likely have to do more of the work?
With the seller professionally represented and you going in solo, you're at a disadvantage, especially if anything goes wrong. I'd highly recommend hiring an attorney to look things over for you.
I agree with the previous poster that it might be a better idea to just deal with a FSBO. This way you have more negotiating leverage and neither party is represented.
Question- If a seller knows they want say 400k for their home and they know that people in todays market might come in lower +20k and that they also have to pay a realtor's commission approx +20k, wouldn't they then price their home at say 440k-450k. So ultimately the buyer: 1. if they come in 20k lower is still paying the realtors commission 2. give asking price cause they don't want to risk losing the house then is paying the realtors commission + the extra lowball amount. So ultimately the sellers are paying for nothing and might be getting extra too!
Question- If approx 20k goes to commission than isn't the real value of the home according to comps 20k less. Why factor in the realtors commission as the real value of the home?
So ultimately who is really paying the realtors commission? Seems like buyer to me unless the seller is underwater.
I just bought my first house with a buyer's agent who I felt was not particularly helpful (as buyers agents go--it was pretty clear she was neither listening to me nor looking out for me) and here is my take:
In my area, you pretty much need a buyer's agent to get you into the houses, as the listing agents generally will not show their own listings (see the other thread). This isn't true in all areas (and I'm not defending it at all), but if it is in yours it will be a big hurdle.
Mine also was helpful with the paperwork, of which there was a lot (many offers, many counters, many addendums). You could definitely do it yourself, but it was nice not to.
Those were the 2 major benefits.
Other than that, I think how much you get from a buyer's agent probably varies by agent. Good ones can probably help find diamond in the rough homes, homes not on the MLS yet, homes that don't quite meet your criteria but could be good bets, help you identify the right number to offer based upon the home's background, etc. Mine was more generic salesman--every house, regardless of if it met any of my criteria was "a steal at full list price," "let's write up the offer now," "I'm sure that mold is no big deal," etc.
If I had it to do again I would definitely research my agent better (I had a few recommendations from friends who were not available so I just picked, and I have to take responsibility for the poor representation that resulted).
Or I might try a Redfin type limited service that gets you in the door but does give you some of the commission back. This would help if you if you want to select which houses you see (which I do), but eliminates the possibility of your agent finding you something outside your normal parameters that might work better.
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