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Old 03-14-2010, 01:49 PM
 
60 posts, read 150,022 times
Reputation: 28

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Any opinion on working without an agent whey buying a home? I'm thinking of setting up showings with the selling agent directly.

I would then ask the seller to consider extending to me the amount of the 2.5% to 3% commission they were going to have to pay my buyer's agent.

This doesn't harm the seller, and makes the home more affordable to me. I understand why agents won't like this, as I know they offer a valuable service. Taking that out of it, is it done??

thanks
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Old 03-14-2010, 02:03 PM
 
28,385 posts, read 68,066,215 times
Reputation: 18195
Not possible. The the seller's agent has entered into a contract with the seller on behalf of their brokerage. That contract guarantees that the entire commission is due to the seller's brokerage. The seller's brokerage will generally share half of the amount with any buyers agents / brokerage involved, but the seller has no influence into this.

The advantages of having a skilled and experienced buyer's agent represent you are enormous to both you and the seller -- far less chance of the sale dying, far less chance of not getting fair value, far faster and smoother process.

If you go into a deal without your own agent the listing agent will be driving things and they have a huge incentive to get the maximum selling price, which is in direct conflict with your best interests.
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Old 03-14-2010, 02:24 PM
 
Location: Massachusetts
422 posts, read 1,206,089 times
Reputation: 294
u may consider using the services of redfin, ziprealty etc and part of their commissions would be reimbursed back to you?
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Old 03-14-2010, 07:33 PM
 
2,884 posts, read 3,197,024 times
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Not possible....huh? I have done this very thing on two occasions. Both times I got the house at the price that I wanted by eliminating the buyers agent.

Quote:
Originally Posted by chet everett View Post
Not possible. The the seller's agent has entered into a contract with the seller on behalf of their brokerage. That contract guarantees that the entire commission is due to the seller's brokerage. The seller's brokerage will generally share half of the amount with any buyers agents / brokerage involved, but the seller has no influence into this.

The advantages of having a skilled and experienced buyer's agent represent you are enormous to both you and the seller -- far less chance of the sale dying, far less chance of not getting fair value, far faster and smoother process.

If you go into a deal without your own agent the listing agent will be driving things and they have a huge incentive to get the maximum selling price, which is in direct conflict with your best interests.
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Old 03-14-2010, 07:55 PM
 
Location: Gorham, Maine
1,817 posts, read 4,273,560 times
Reputation: 1240
Quote:
Originally Posted by theS5 View Post
Not possible....huh? I have done this very thing on two occasions. Both times I got the house at the price that I wanted by eliminating the buyers agent.
How do you know what you would have paid with a buyer agent? It could have been substantially less than you paid.
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Old 03-14-2010, 09:03 PM
 
Location: Northern Virginia
274 posts, read 575,117 times
Reputation: 94
You got what you wanted. The listing agent got what he contracted. Seller was greatful because the listing agent herded cats. Win-win.

Quote:
Originally Posted by theS5 View Post
Not possible....huh? I have done this very thing on two occasions. Both times I got the house at the price that I wanted by eliminating the buyers agent.
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Old 03-14-2010, 09:50 PM
 
28,385 posts, read 68,066,215 times
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Default Did you review the agent settlement statement? Without that...

Quote:
Originally Posted by theS5 View Post
Not possible....huh? I have done this very thing on two occasions. Both times I got the house at the price that I wanted by eliminating the buyers agent.

So you offered what 96% of list and told the agent that they could "pitch" this to the seller as being "just like getting 100% of list and have the agents take another 4%"??? Putting aside the fact that unless you're privy to all communication between seller and agent there is no way to know that is what happened, do you really think the seller only would have been willing to sell for 100% of list?

OK, maybe that is unrealistic, maybe the average selling price in your area was running about 93%, but you made an offer at 90% that was accepted with you "heads-up" about this being every bit as good as the 93% offers that were an area average, yet the sharky son of gun agent that seem to go along with your little scheme deliberately over priced the place by 4% to gave themselves more negotiation room and they hooked you...

Still too unrealistic? You're a much more saavy buyer than that, huh? So you checked out all the comps and you know the likely prices better than pretty much any agent. You zero in on your target, you stalk the most value priced homes. You make an offer that is the absolute bottom offer that even the greediest seller could never turn down and then you ZAP 'em with an "extra 3% off 'cause I ain't got no stinkin' are I walk pardner..." and the seller CRUMBLES in the face of your steely-eyed does of reality. Right, and you also walk out of car dealers with them paying you to take the car off their hands for less than invoice, buy all your carpets at "going out of business' sales, and buy diamonds at such a low price DeBeers site holders have have a hit out for you...

The fact is to any buyer or seller the actual compensation of agents is irrelavent -- all that matters is the best net. If the seller agent can convince an unrepresented buyer that they are "cutting a deal" then the myth is helping you to believe you are getting a better net, and that plays right into what they need to tell the seller "listen this buyer things they are getting a heck of deal because they are cutting out a buyer's agent, but trust me the offer that I just wrote up from him is way higher than I really thought is possible, we can string this buyer along and net a much better deal if you just follow my lead, there is nothing unethical about getting you, the seller, my only client, to whom owe a fiducary responsibility, the best price I can with a littel fiction to make this buyer feel like the biggest wheeler deal this side of Donald Trump....
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Old 03-14-2010, 10:18 PM
 
Location: Gorham, Maine
1,817 posts, read 4,273,560 times
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In researching prior sales, I consistently see the highest prices on homes where one agent does both sides of the transaction.
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Old 03-14-2010, 10:29 PM
 
28,385 posts, read 68,066,215 times
Reputation: 18195
Default As I said, nothing unethical about getting your client a high price...

Quote:
Originally Posted by WhoFanMe View Post
In researching prior sales, I consistently see the highest prices on homes where one agent does both sides of the transaction.

...and do you really think a 'buyer' who goes out of their way to mess with the accepted standards of real estate agent is going to cost you any referrals down the road? I doubt it. Heck these are the kind of folks that when they sell will almost certainly go FSBO, and given their behavior they'll be the kind of FSBO seller that none of the other real estate agents will miss representing...
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Old 03-14-2010, 11:43 PM
 
60 posts, read 150,022 times
Reputation: 28
Default My house is for sale right now...

I'm using an agent to see my home, by the way, so I believe in them.

My agent agreed to a 5% commission (vs 6%). When we sell, they get 2.5%, and the agent who brings the buyer gets 2.5%.

Now, it doesn't seem right that I give the full 5% to my agent if the buyer has no agent. I would expect to give my agent 2.5%, though I admit the contract I signed is for 5%!

Maybe I'm getting closer to an answer. But it would seem this would be black and white, unless there are contracts that say "2.5% to the listing agent, 2.5% to buyer's agent". IF there is no buyer's agent, then the home seller should retain that amount.
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