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Do you save money which would normally go to the buyer's agent? we've been told by one realtor that we would save $10k on a particular home without a buyer's agent. We were told by another realtor that is impossible, that the company who lists the property will get their percentage no matter what.
We were told that in North Carolina, you save no money by representing yourself (the risks involved in this choice are another subject).
Do you save money which would normally go to the buyer's agent? we've been told by one realtor that we would save $10k on a particular home without a buyer's agent. We were told by another realtor that is impossible, that the company who lists the property will get their percentage no matter what.
We were told that in North Carolina, you save no money by representing yourself (the risks involved in this choice are another subject).
Assuming the home is listed under an Exclusive Right To Sell agreement, the following may apply.
Generally:
The Seller has a contract with a Listing Agency to bring a Buyer.
The contract includes a payment to the Listing Agency.
The contract stipulates what the Listing Agency will offer to another Agent who brings a successful Buyer.
That contract is between those two parties, and you are not a party to it.
I will say this: We went in to our new community without an agent. The home we own was listed at $258,800, and we offered $235,000. When we filled out the offer, via the builder's agent (new construction), there was a box on that paper where you could mark whether the offer came from an individual (no rep) or an agent.
While I will never know for sure (naturally, their agent was tight-lipped about anything regarding us not having an agent, saying she was unable to talk about "perks" for folks without agents, as that would discourage other agents from bringing in clients), I feel quite strongly that our not having an agent was part (big or small) of the builder deciding to agree to our offer, which, as you can see, was 23,000 less than asking. And that was after the builder had already slashed his price from 269,900 to 258,800.
The estate agent who said we would save nothing by going without a buyer's agent said the listing company 'will get their percentage, no matter what'. This estate agent is the seller's agent, fwiw.
This is the same agent who threatened, 'I'd hurt ya' twice if we went without a buyer's agent, so who knows?
(Apropos of nothing, what is it with the 'Southern gentlemen' who make threats and intimidate like a mafia? We keep running into these types...typically with a boy's name, 'Davey', 'Billy', etc but they are 50+ years old and physically imposing)
We did not use a buyers agent when we recently bought new construction and received %2.5 percent off of the base price of our house among other discounts from the builder. We save a total of $40,000 plus received additional interior upgrades. Moderator cut: off topic We knew ahead of time the profit percentage the builder makes on each house so we were well aware of what we could negotiate both in price off the house & interior upgrades. Educate yourself in the process and see if you feel comfortable buying w/o an agent. The market is in your favor now so do what you can to get the best price for you. It worked for us but I know it's not for everyone. We also did have a home inspection even though it was new construction. That is something you should not forego!
Last edited by autumngal; 04-16-2008 at 04:35 PM..
It worked for us but I know it's not for everyone.
I don't mean to seem like I am picking on you, but based on this previous post you made, it sounds to me like you might have benefited from the services of an experienced agent.
I was well served by my buyer's agent. He did an excellent job negotiating the deal and made me aware of issues I had not even thought to consider. Saved me a lot of pain and aggravation. There is more value to an agent besides the $$ paid / saved during the purchase of the house. I can think of a lot of reasons to use an agent, but the most important reasons are the ones I am not even aware of because I don't know every angle that could come up during the transaction.
Good luck!
Last edited by North_Raleigh_Guy; 04-16-2008 at 04:16 PM..
It will depend on the specifics, but usually, you will not save money by doing it without representation. Why? The sellers usually specify a certain percent commission for the listing agent. In turn, the listing agent offers a portion of that to an agent who brings a buyer. If there's no buyer's agent, then the listing agent will get the whole commission.
Likewise, in a new development, there is a marketing budget for agents who bring buyers. If there is no agent bringing they buyer, the money stays in that marketing budget, so it's not advantageous to the buyer to go in unrepresented either.
It will depend on the specifics, but usually, you will not save money by doing it without representation. Why? The sellers usually specify a certain percent commission for the listing agent. In turn, the listing agent offers a portion of that to an agent who brings a buyer. If there's no buyer's agent, then the listing agent will get the whole commission.
This is exactly how it was explained to us. And we were required to sign a form stating we understood how it works in the state of NC.
Personally, I feel like I have two people in favour of the seller rather than just one when I work with a buyer's agent. I can check the comps on the county tax sites, and also what the buyer paid and how much he/she owes on their mortgage. Buyer's agents have never told me this info. I know you all go on about a 'good' buyer's agent, but I've interviewed SO MANY, and I feel maybe I'm just better off on my own.
Being an independent educated woman, I researched the issue I posted about previously. Wrote to the town of Cary & met with their planners. Showed them the site plan with the deeded open space on plot plan. Town of Cary fined the builder a large fine because the lot was part of the developments percentage of space to keep open as a whole. Builder now can not build on the lot in question and currently in process of having it declared a conservation easement. Moderator cut: flame Issues can arise in any real estate transaction both before & after settlement. I only advise to go the no buyers agent route if you feel comfortable. It's not for everyone but it worked for me & my family and I feel good about the money we saved in the process.
Last edited by autumngal; 04-16-2008 at 04:29 PM..
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