Buyer's agent that charge 1% closing fee

[boyd888]

Originally Posted by 314Pie

and why would a buyer's agent do this?
it's a hot market out there right now, no?

It is a niche service of sorts. 6% agent fees are really a relic of the past considering the amount of time that can be saved with the internet and buyers doing their own research. However, the problem still remains that realtors don't get paid until they close. This means they make $0 on anyone they show homes to that doesn't buy. I'm sure for some realtors the "tire kickers" are a huge pain in their side.

So some realtors remove them from the equation by requiring buyers to find their own places and get preapproval. In return, they offer a rebate of their fees. While it is still possible that person may not buy something quickly, people that are preapproved are a lot further along in the process and should have no issues securing their mortgage loan. They don't waste time showing homes their buyers may not even like.

There are also realtors that may offer a rebate with no restrictions as a way of getting more business or clients.

[slim04]

I don't think these places are selective and a lot of inexperienced agents and part-timers use them.

[Jon_In_NOVA]

Originally Posted by slim04

I don't think these places are selective and a lot of inexperienced agents and part-timers use them.

This was not true at all for us using I-Agent. Our Agent "Wade" was great with all the tangible experience necessary on top of being certified distressed property expert etc. etc. In fact we still keep in touch through social media, Christmas cards and the like.

Best of all, the 2% certified check that we received post closing.

[fcyolo]

Originally Posted by Jon_In_NOVA

This was not true at all for us using I-Agent. Our Agent "Wade" was great with all the tangible experience necessary on top of being certified distressed property expert etc. etc. In fact we still keep in touch through social media, Christmas cards and the like.

Best of all, the 2% certified check that we received post closing.

I have also used wade with a very positive experience. I believe he is an IT graduate and his tech saviness throughout the process really assisted us with counter offers, docusign etc... . The 2% back at the end was the icing on the cake.

[kww]

Originally Posted by slim04

I don't think these places are selective and a lot of inexperienced agents and part-timers use them.

in the case of the office mentioned throughout this thread, it doesn't seem to be the case.. Small roster, but can't confirm part time/full time status

*Disclaimer.. I do not work for the company mentioned in this thread, just trying to provide info.

[knock]

You can just put in an offer that is 3% below the price without using a realtor. That should result in the same net profit to the seller, unless they have in their listing clause that the listing broker keeps the 3% if there is no listing agent.

If you really like the house, offer the listing agent $1,000 to write your offer. Some will do this and it's basically equal to them selling the house for $33k more. Also, they'll push the buyer to accept your offer because there's more in it for them. They're not supposed to do this, but I know people who have employed this tactic to win bidding wars without being the highest bidder.

[johnsonkk]

Originally Posted by knock

You can just put in an offer that is 3% below the price without using a realtor. That should result in the same net profit to the seller, unless they have in their listing clause that the listing broker keeps the 3% if there is no listing agent.

If you really like the house, offer the listing agent $1,000 to write your offer. Some will do this and it's basically equal to them selling the house for $33k more. Also, they'll push the buyer to accept your offer because there's more in it for them. They're not supposed to do this, but I know people who have employed this tactic to win bidding wars without being the highest bidder.

There are some holes in that plan. First is disclosure to the sellers (legally) that indicates the agent is now working both parties. Second is the "3% less". Nobody knows what the exact market price is that will be accepted then know where that 3% will bring the eventually agreed price. Finally, during the inspection, repairs, title concerns, insurance, etc is where agents also earn their money. Once a contract is accepted, the the real effort begins.

[knock]

Originally Posted by johnsonkk

There are some holes in that plan. First is disclosure to the sellers (legally) that indicates the agent is now working both parties. Second is the "3% less". Nobody knows what the exact market price is that will be accepted then know where that 3% will bring the eventually agreed price. Finally, during the inspection, repairs, title concerns, insurance, etc is where agents also earn their money. Once a contract is accepted, the the real effort begins.

re: disclosure: That one is easy. And if the seller is getting their asking price anyway the agent will simply show them the math that it doesn't matter.

re: 3%: That's generally enough wiggle room to get people together to make the deal

re: inspection, repairs, title concerns, insurance: Real estate agents don't do any of this work. Other companies do. Real estate agents may even recommend bad companies for which they receive kickbacks.