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You forget the seller has already agreed to pay his agent x% who advertises X% of that amount per the rules of their local MLS system. Are you asking the seller and the listing broker to renegotiate the amount offered after it's advertised to another agent ?
That had been my original thought, but as I mentioned:
"[My buyer's agent] even recommended that this be implemented without negotiating anything off of the standard commission in the contract between the listing agent and the seller, but instead for them to agree to rebate me 100% of the standard commission and for me to then pay them according to the agreed formula."
To keep it legal, Hopefully your Buyers agent will also send you a 1099 for the money he rebates back to you.
If you are financing, you might make sure your lender has no problem with you walking away with so much pocket money and not taking it off the price of the house.
You forget the seller has already agreed to pay his agent x% who advertises X% of that amount per the rules of their local MLS system. Are you asking the seller and the listing broker to renegotiate the amount offered after it's advertised to another agent ?
What you had is a Variable Listing commission. Now you're asking your Buyers agent to accept a variable BAC ?
I think he's expecting his agent to give him the difference at closing. We just make too much money didn't ya know?
That had been my original thought, but as I mentioned:
"[My buyer's agent] even recommended that this be implemented without negotiating anything off of the standard commission in the contract between the listing agent and the seller, but instead for them to agree to rebate me 100% of the standard commission and for me to then pay them according to the agreed formula."
This is laughable. So, how does that work? Are we suppose to trust you to write us a check. Good luck finding an agent willing to do this.
Buyers agents are rewarded for helping you find the best house at the best price by the loyalty you show them with future business and referrals.
Your incentive will push the agent to show you cheaper houses that might not be the best for you and ignore nicer homes that would better fit your needs. Is that what you want? If so, go for it.
Buyers agents are rewarded for helping you find the best house at the best price by the loyalty you show them with future business and referrals.
Your incentive will push the agent to show you cheaper houses that might not be the best for you and ignore nicer homes that would better fit your needs. Is that what you want? If so, go for it.
True. And it doesn't necessarily save you money if it a lower priced house. That has more to do with the value of the house.
To keep it legal, Hopefully your Buyers agent will also send you a 1099 for the money he rebates back to you.
Thanks, I'll be sure to remind him. Again, the commission is small compared to purchase price, so I consider this an acceptable drawback of the current standard where sellers and listing agents agree upon what the buyer's agent should be paid. I don't really see the rationale behind that arrangement. In an ideal market, that agreement would be purely between the buyer and the buyer's agent.
Quote:
Originally Posted by Rakin
If you are financing, you might make sure your lender has no problem with you walking away with so much pocket money and not taking it off the price of the house.
I am buying with cash, and indeed, one of the reasons I wanted a scheme like this was that I wanted to be able to disclose to my agent how much cash I had without worrying about them trying to spend it all. Even if I was planning to get a mortgage, I'm not sure why a lender would care about commissions at all as long as the house appraised.
Quote:
Originally Posted by Zyngawf
This is laughable. So, how does that work? Are we suppose to trust you to write us a check. Good luck finding an agent willing to do this.
You are supposed to trust a legal system that allows them to sue me for breach of contract. And yes, I already found several agents willing to agree, and picked the one with the most experience who also understood the reasoning the best. The rebate idea was actually their idea, not mine.
Are you telling me that you demand payment from your clients up front?
Last edited by perfectlyGoodInk; 09-05-2012 at 09:02 AM..
Buyers agents are rewarded for helping you find the best house at the best price by the loyalty you show them with future business and referrals.
Yes, and as I said, referrals remain equally important under my proposal.
Quote:
Your incentive will push the agent to show you cheaper houses that might not be the best for you and ignore nicer homes that would better fit your needs. Is that what you want? If so, go for it.
I would rather be pushed to cheaper houses than be pushed to expensive houses. I will only make an offer on a home that I like, and the home will also have to pass inspection, so the agent is going to want to show me homes that I like.
True. And it doesn't necessarily save you money if it a lower priced house. That has more to do with the value of the house.
The standard scheme doesn't maximize value of the house either. Value and price are only loosely correlated. Indeed, with two houses where all else is equal, the lower price provides the better value.
OP, thank goodness for America where you are free to negotiate whatever deal you like. There are enough agents who know the value of their service that will easily discount their fees and the quality of service to you.
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