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.
I am looking for a house to buy in the near future and usually do the searching myself on websites or just driving around the neighborhood. Most places are listed with a coporate real estate company (ie Skogman, Remax, Coldwell, etc). WHenever I call these places to ask about a showing or price or other info, they hound me and want to become my personal realtor and send a barage of properties that might interest me.
I would not have a problem with that, but does that not subject me or the seller to a higher commision? ie 3% to the realtor who emailed me the link to a house I'd not seen and 3% to the listing agent? For 3% I can drive around my own neighborhood.
When the seller lists his house for sale with an agent, that agent negotiates a commission amount. Might be 7%, 6%, 5%.... whatever. Then that agent OFFERS a portion of thier commission to any agent that can bring a buyer and consummate a sale. In otherwords, that seller is paying that 6% to just his agent... his agent chooses to share that commission in some form with YOUR BUYERS agent, if you do not have one, he/she keeps it!!
And, now the seller is represented, and knows the comps, and other information and you have NO REPRESENTATION!! would you go into court without your lawyer, knowing the other side is well compensated and all lawyered up????
Your question tells me that you could probably use the help of a professional that will help you nagivate the ropes and probably save you more money than you can save on your own!!
If you have a relationship with a Realtor (the one who is emailing you new listings) call him/her and ask - hey when you get a chance what is the house at xxx on xxx street going for?
why call the Realtor working for the seller or their brokerage at all?
When the seller lists his house for sale with an agent, that agent negotiates a commission amount. Might be 7%, 6%, 5%.... whatever. Then that agent OFFERS a portion of thier commission to any agent that can bring a buyer and consummate a sale. In otherwords, that seller is paying that 6% to just his agent... his agent chooses to share that commission in some form with YOUR BUYERS agent, if you do not have one, he/she keeps it!!
And, now the seller is represented, and knows the comps, and other informationand you have NO REPRESENTATION!! would you go into court without your lawyer, knowing the other side is well compensated and all lawyered up????
Your question tells me that you could probably use the help of a professional that will help you nagivate the ropes and probably save you more money than you can save on your own!!
shelly
Shelly pretty much said it all and I simply highlighted parts of it. Buyer agents, in other words the agent whose responsibility it is to promote and protect 'YOUR' best interest is compensated out of the listing commission. So to somewhat steal Shelly's analogy, if you were being sued for, oh, slamming into the back of someone's car and they were seriously injured, would you go to court unrepresented when the person suing you had an attorney? Just something to contemplate.
While many people are very experienced in buying and selling property on their own, and are sucessful in doing so - from your post, I as well feel you need someone looking after 'your' best interests.
You should take some time to find a good agent and let them help you find the house. Like stated previously, the agent working for the seller lists the property for x% and offers a portion to the buyers agent. You are more likely to get a good deal if you have a very good buyers agent than if you don't. Since it's free, you may as well use one.
Questions to ask: How properties have you sold in the last 12 months, are full time, tell me about financing options, do you have a team, whats your negotiation strategy, how do you select the properties we'll go look at. Meet with at least 3 and pick the one you feel comfortable with.
I think SHELLYTC explained the commission break down very clearly.
Many people think if they don't have a buyer's agent they will "save" money - instead they end up with no one on their side! To be honest, as a listing agent - I LOVE getting calls from someone who is not working with a buyer's agent!!
I will add one other item that I don't think has been covered. When you call the listing agent (or the office) they must ask you if you are working with an agent. If they fail to do so they could easily end up in eithics trouble with their local board - or worse, in an legal battle over the commission split. Don't take offense if they tend to "grill you" on the question. As I mentioned, I have often taken calls from those with "no" buyer's agent: If when asked if the caller is at all vague (i.e. I'm not really working with anyone. OR Well, an agent showed me something but, not really...) I'll ask again and make specific note of the answer. Much as I am thrilled to have an unrepresented buyer, I won't risk any type of conflict. I will want to be SURE you are unrepresented.
Best wishes in your search for a home!
You will serve your own interests best if you find yourself a good buyer's agent rather than calling around to different listing agents to get information. Your agent will be contractually obligated to work for your best interests. The listing agent is contractually obligated to work for the seller's best interests. It seems unlikely that you've purchased real estate before since you're not familiar with how agency works, so you don't even "know what you don't know." A good, experienced buyer's agent will save you time, money, and many headaches. And, the seller is already contractually obligated to the listing agent to pay the commission that will either go to your agent or will simply all go to his own agent so it won't cost you any "more" money to be represented (in essence, whether you're represented or not, the cost of the house will include the compensation that would go to your agent -- you can't alter the contractual arrangements the seller has already entered into). In fact, many listing agents write into their contracts with the seller that, in the event an unrepresented buyer buys the property, that agent will give a commission discount TO THE SELLER, not to the buyer.
You're also probably not doing yourself any favors by calling around to listing agents to get information and arrange showings. Most listing agents have a lot of experience in pumping buyers for as much information as they can glean in order to bolster their client's negotiating strategy.
Just a note... just because someone emails you a listing doesn't mean they are entitled to a commission. It is the agent that brings in the offer and consumates the deal that gets commission.
I am looking for a house to buy in the near future and usually do the searching myself on websites or just driving around the neighborhood. Most places are listed with a coporate real estate company (ie Skogman, Remax, Coldwell, etc). WHenever I call these places to ask about a showing or price or other info, they hound me and want to become my personal realtor and send a barage of properties that might interest me.
I would not have a problem with that, but does that not subject me or the seller to a higher commision? ie 3% to the realtor who emailed me the link to a house I'd not seen and 3% to the listing agent? For 3% I can drive around my own neighborhood.
Obviously no one has taken the time to explain commissions to you. The Seller pays the commission. If you were to purchase from a realty company, even if you purchased from the Listing agent, they are entitled to the listing and sales side as well.
Save yourself some time, use the aid of a Buyers Agent.
No it does not. The seller agrees to a flat commission which is split with the realtor who actually takes the offer. This can be the listing agent( who is legally loyal to the seller) or a buyers agent who is legally obligated to you) Just make sure the listing broker is offering a buyer broker commission and you do not sign anything that obligates you to pay any additional money to the buyers agent. So why wouldn't you want a knowledgeable professional protecting your interests for FREE? ( saving you time and money)
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.
