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 have purchased a home before and am going to be buying on this summer. Out last home was a brand new home where the home builder pretty much paid closing costs, etc.
This time around, the market is very different and we will be buying an existing home. We will be looking at short sales and from what I understand, most short sales do not ay closing costs and fees. I already know exactly what I want, I know what a fair deal is and I am good at negotiating.
I have prepaid legal and Real Estate is one of my benefits. Since I already pay for this benefit I am wanting to know if it is wise to use a real estate attorney vs. a real estate agent. I could save thousand by using a service I have already paid for.
I am not saying Real Estate Agent's do not deserve their commissions, they do deserve them. They also provide a service that many need. However, if I have already paid for an attorney to get me through the transaction.... why should I have an agent?
Not to sound condescending, but do you realize that the commission agreed to be paid is a separate agreement between the seller and their listing broker/agent? The buyer has nothing to do with their contract. That means, if you come in without an agent, "you're" not saving any money, and neither is the seller. They have already agreed to pay their listing agent a set amount. The listing agent then agrees, within that same contract, how they will share the fee if there is a cooperation broker involved with the buyer. That means, if there is no buyer's agent, there is no fee to give to anyone and the listing broker keeps it all...
So, what do you mean by "I could save thousands..."?
Also, attorneys, unless they are also licensed real estate agents, do not have access into the homes, so how do you plan on viewing the homes? Since, more than likely, this attorney isn't licensed, they also won't have access to the MLS which holds the sales information, so who is going to show you the sales prices of the recently sold homes so you know what a "fair" price is for the house you want to buy? Please don't tell me you're just going to offer X% off their asking price. That's not a smart move.
In Texas, the contracts are promulgated and written up by a broker-lawyer committee. This means, the contracts are already legal documents and there is nothing for a real estate attorney to do. THere is no verbiage that can be crossed out or anything. They are set forms... so again, what do you think this attorney can do for you, if you're in a state that doesn't use attorneys?
I would go with the pre paid Attorney. The number one myth in real estate is that the seller pays the realtor commissions. Not even remotely true. You both do. Lower transaction costs affect both buyer and seller and give you far more leverage.
Short sales are a different ballgame. They are a completely different way of negotiating and some banks have a "commission policy." So while, if I'm understanding your post correctly, what you are hoping to do is come in with a lower offer and ask the listing agent to waive the portion of the fee that goes to a buyer agent, you need to understand that contractually they have no obligation to do so. Since you, like everyone else, is looking for a bargain, it is highly possible you will end up in multiple offer situations. You need to think about that.
If you have preapaid legal and your attorney wants to get you into homes and such, by all means, hire an attorney.
I have purchased a home before and am going to be buying on this summer. Out last home was a brand new home where the home builder pretty much paid closing costs, etc.
This time around, the market is very different and we will be buying an existing home. We will be looking at short sales and from what I understand, most short sales do not ay closing costs and fees. I already know exactly what I want, I know what a fair deal is and I am good at negotiating.
I have prepaid legal and Real Estate is one of my benefits. Since I already pay for this benefit I am wanting to know if it is wise to use a real estate attorney vs. a real estate agent. I could save thousand by using a service I have already paid for.
I am not saying Real Estate Agent's do not deserve their commissions, they do deserve them. They also provide a service that many need. However, if I have already paid for an attorney to get me through the transaction.... why should I have an agent?
Feedback is greatly appreciated.
If it were a regular sale I may say go for it but short sale no way. Banks probaly won't even talk to you, you'll wind up having the listing agent as your realtor and she will be dual agency I would guess is what would happen.
Also, the fact taht your considering short sales shows you need some guidance. There are more than enough foreclosures out there that are as good a deal if not better than short sales.
Why go short sale, it involves more parties owner and bank as opposed to foreclosure being just bank. A very small percentage of these sales actually go through, they drag on forever, etc, etc, etc.
Get a realtor you most likely can ask the bank to pay closing costs.
You will have then to use seller's agent if it is legal in your state. And before submitting an offer with the seller's agent you should be able to renegotiate the commission of the seller's agent. The seller's agent may be interested in this case to reduce his commission by 1-2 percent. I think more likely 1%. If the house you are buying is 200K , you will only save 2K.
Now, you say you are good at negotiating, but that is , the commission part, I must tell you a tougher negotiation then the negotiation on the price of the house. But you should better do it before you even go look at the property with that seller's agent. The thing is , if you may like some listing, you will have little choice but this one particular selling agent to deal with. So it all depends on how smart they are. I saw a lot of really stupid ones, who just do not get it, and any attempt to talk about their commission brings them into a fury.
Oh wow. I'm willing to bet there are some fine attorneys in prepaid legal......if you want a will, if you want to set up a trust.......or purchase a home that is not in distress. But to have adequate representation, an attorney (and without an agent) from a prepaid plan is not your answer and will most likely cost you more. They won't have the time or energy to represent your interests......and probably not available when you need them most (after hours). And, I'm even willing to bet, each time you call them, you'll have to remind them who you are. I'm sorry, but after observing some of the most complicated and intricate details that hang up a transaction, I just can't see by-passing both, an experienced short-sale Realtor or an experienced real estate attorney (or a title company with a short-sale team). Both agent and experience legal representation is needed. (Did you know that when the seller's bank approves the short sale, many times they only give 10 days to close at that price? Do you think a prepaid attorney is going to have title ready and waiting for a maybe?)
This is no exception to the old addage, you get what you pay for......and if done correctly, the seller's bank will be covering your Realtor's commission - these asset managers and short-sale departments will not negotiate directly with the buyer, they'll just move on to the next buyer. But to think they'll knock off % because you don't have a Realtor? Not going to happen - especially if this is the first time in front of the lender for the short sale. I have worked for banks my entire career and can emphatically tell you, the only one they are going to be talking to is their real estate actuary and designated negotiator, many times a third party.
What you have in mind may have been possible a couple years ago.....but these folks are hardened and bottomline oriented. Each bank has their own bottom-line formula what they are willing to accept off the market value and the porportion of that value to the balance owed. That formula is guarded better than the recipe for Coca Cola.
I'm sorry if this seems harsh, I am continually stunned at some of the shortcuts people take with the most expensive investment in their lifetime. I wouldn't even recommend a seasoned professional do this on their own, so I certainly would never advise a sharp negotiator to do so, either.
Also, the fact taht your considering short sales shows you need some guidance. There are more than enough foreclosures out there that are as good a deal if not better than short sales.
Why go short sale, it involves more parties owner and bank as opposed to foreclosure being just bank. A very small percentage of these sales actually go through, they drag on forever, etc, etc, etc.
Get a realtor you most likely can ask the bank to pay closing costs.
I would prefer to not look at a Short Sale, but we are looking in a very defined area and there are no foreclosures in the area that are meeting our criteria. There is, however, a short sale.
Yes, I can ask the bank to pay the closing costs, I have this varies tremendously from lender to lender.
Just to be clear to everyone, I am no way saying that Real Estate Agents do not deserve their commissions nor provide I much needed service. I am a do it yourself kind of person and was needing to know why I would require an agent. Thanks for all of your feedback.
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.
