Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
First, the buyer's broker fee is worked in to the selling price of the home, thus one could argue if Buyers agents did not exist, house prices across the board would drop 2-4%.
It's the same thing as a retail establishment knowing what their electric bill is each month and acounting for this bill in their sell prices.
It's a cost of doing business.
Next, if the sellers agent, by law, MUST get the highest price for the house and the sellers agent MUST get the lowest price, these two entities cannot exist together. It's a complete conflict. Any house is only worth what someone is willing to pay for it.
In this case, the buyer has comps and a buyers agent cannot help.
With all of the info available to buyers and sellers FOR FREE, I hope buyers agents disappear.
I know RE agents don't want to hear this.
I personally think the complete opposite. Everywhere else in the country buyers agents are the norm, here on LI, they are the exception. Accross the board price drop is unrealistic, we've been operating on LI without buyers brokers for many years, commissions aren't any less here, they just all go to the seller's agent or subagent.
ultaimately the buyer is the one ponying up all the cash in the transaction, suprisingly the buyers haven't woken up to think that someone should be looking out for their interests in the tranaction.
Ultimately, I don't think they do all that much if you have the house, the comps etc. they can help in negotiations to a point.
there are services to put in your offer that will refund some cashback. redfin maybe?
we do like an agent who we've met at a couple of open houses we were thinking of using simply because she sounds knowledgeable and is really nice. only thing is, not sure if she's familiar with this particular area.
Chances are you know more about your target area and what you're looking for more than the agent, even if they work in that specific location. Ultimately, you're the one that knows exactly what you're looking for.
All the agents have access to the listing information regardless of what particular geographic area they work in - sure some may know that a particular house is right next to an undesireable property and not even worth presenting to you to waste your time, but hopefully you would know that as well, unless you're an out-of-town buyer relying on someone else to scope things out for you.
I personally think the complete opposite. Everywhere else in the country buyers agents are the norm, here on LI, they are the exception. Accross the board price drop is unrealistic, we've been operating on LI without buyers brokers for many years, commissions aren't any less here, they just all go to the seller's agent or subagent.
ultaimately the buyer is the one ponying up all the cash in the transaction, suprisingly the buyers haven't woken up to think that someone should be looking out for their interests in the tranaction.
Ultimately, I don't think they do all that much if you have the house, the comps etc. they can help in negotiations to a point.
there are services to put in your offer that will refund some cashback. redfin maybe?
this redfin sounds too good to be true .... and perfect! thanks!
Bringing aboard a buyers agent at this stage in the game could be a mistake. You have already done the leg work and there is nothing another person can contribute, unless you think they have some negotiating skill that you do not have (for example, a similar house across the street comes up for sale and a buying agent can start a price battle on your behalf, you can also do this yourself though). But it sounds like you may be past that stage.
Now - here's the big risk if you use a buying agent. Say someone else comes with no buying agent and matches your offer. Say they have a similar downpayment, credit score etc...The selling agent WILL steer the buyer to the direct offer over the one using the buying agent if all other factors are somewhat equal. I have had direct experience with this and it does happen regularly - especially with the greedy agents we have!! Using the seller agents greed to your advantage is one of your best negotiating tools. You may even save a few more thousand dollars because they will cut their commision 1% to close a deal if you drive them hard. They cut $2,250 off their commission when I bought earlier this year which I used to help with my closing costs. The seller accepted my offer over a higher offer, primarily because I did not need a contingency in my contract, but the fact that I worked with the seller agent directly made him very eager
to recommend me.
The fact is, if they can make 2x the commission and still sell the house for the same price for the seller - they ARE salespeople...
Bringing aboard a buyers agent at this stage in the game could be a mistake. You have already done the leg work and there is nothing another person can contribute, unless you think they have some negotiating skill that you do not have (for example, a similar house across the street comes up for sale and a buying agent can start a price battle on your behalf, you can also do this yourself though). But it sounds like you may be past that stage.
Now - here's the big risk if you use a buying agent. Say someone else comes with no buying agent and matches your offer. Say they have a similar downpayment, credit score etc...The selling agent WILL steer the buyer to the direct offer over the one using the buying agent if all other factors are somewhat equal. I have had direct experience with this and it does happen regularly - especially with the greedy agents we have!! Using the seller agents greed to your advantage is one of your best negotiating tools. You may even save a few more thousand dollars because they will cut their commision 1% to close a deal if you drive them hard. They cut $2,250 off their commission when I bought earlier this year which I used to help with my closing costs. The seller accepted my offer over a higher offer, primarily because I did not need a contingency in my contract, but the fact that I worked with the seller agent directly made him very eager
to recommend me.
The fact is, if they can make 2x the commission and still sell the house for the same price for the seller - they ARE salespeople...
true. but we're offering about $20k less than asking because its such a small house. completely updated, but the houses in that area with 200-400 more sf and more property size, more bathrooms, just not updated. but those updates can not run the same worth as more sf, and addl bath....
true. but we're offering about $20k less than asking because its such a small house. completely updated, but the houses in that area with 200-400 more sf and more property size, more bathrooms, just not updated. but those updates can not run the same worth as more sf, and addl bath....
I agree, the updates are not worth more than the SF and a 2nd bath. If I were planning for a family, I would go with the fixer upper with 2 baths more SF. Fixing stuff up is a real headache (I know, I am finishing up a new kitchen right now), but I would rather put hard work and effort into a house I will be in for 20+ years, than buy a updated house that I cannot sell for a profit 5-10 years down the road.
Also - starter homes are the riskiest investment right now (that and McMansions), because trading up may be diffficult in 5 years or even 10, depending on interest rates and other factors. "Rightsized" hoses are the best investment right now IMO.
You may be offering too much - maybe you do need a buying agent. If so, find the best person in you area that you can trust.
thanks Tom. But we've already found the houses we like and we know how much they are worth compared to the comps.
what exactly can a buyers agent do for us now?
It's actually a little late in the game to bring in a buyer's agent. If the seller's agent showed you the home and was (in our language) the "procuring cause of the sale", your buyers agent would not get paid, so it is doubtful that you would find someone to represent you.
First, the buyer's broker fee is worked in to the selling price of the home, thus one could argue if Buyers agents did not exist, house prices across the board would drop 2-4%.
It's the same thing as a retail establishment knowing what their electric bill is each month and acounting for this bill in their sell prices.
It's a cost of doing business..
I don't quite understand your reasoning. If there were no buyer's agents, it would be seller's agents selling the homes. There would be no commission savings.
Quote:
Originally Posted by scottzilla
Next, if the sellers agent, by law, MUST get the highest price for the house and the sellers agent MUST get the lowest price, these two entities cannot exist together. It's a complete conflict. Any house is only worth what someone is willing to pay for it..
Again, I don't get the reasoning. One party represents each side. It's like lawyers. Each has the duty to try to get the best possible outcome for his client..[/quote]
Quote:
Originally Posted by scottzilla
With all of the info available to buyers and sellers FOR FREE, I hope buyers agents disappear.
C'mon, Scott. I've read your other posts. For some reason you seem to wish that all agents would disappear.
this redfin sounds too good to be true .... and perfect! thanks!
The problem with redfin is their business model. They offer 20% of their commission back to the buyer, but they do not show them houses. They call and ask the listing agent to show the home for them. In most cases, the listing agent will refuse and tell them to get off their lazy backsides.
Redfin will soon go the way of Foxtons.
If you do want to get cash back at closing from your agent, you can enter into an arrangement with a full service buyer's agent that works like this:
The agent agrees to accept X as commission. If the seller pays any more then X, the difference will be refunded to the buyer/client.
You will need to do this through an independent company as most of the big franchise companies will not allow their agents to make such an arrangement.
C'mon, Scott. I've read your other posts. For some reason you seem to wish that all agents would disappear.
Billy Joel wrote a song about Scotty-boy... the angry young man
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
