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As a buyer if a person decides to represent themselves and not utilize a real estate agent. Will the seller still have to pay more than a 3% commission on the sale to their own agent if that agent is the only one involved in the sale and only represents the seller?
As a buyer if a person decides to represent themselves and not utilize a real estate agent. Will the seller still have to pay more than a 3% commission on the sale to their own agent if that agent is the only one involved in the sale and only represents the seller?
The answer to your question is in the listing agreement the seller has with their broker - which you have no access to. Some brokerages provide a lower commission if a buyer represents themselves while other agreements provide for a full commission to be paid regardless of who purchases the property.
I see. That's unfortunate. I was hoping to have a bit more leverage in negotiating the price if I did all the legwork myself and didn't use an agent on my end of the deal. So at least in some cases the seller's agent will get an extra commission for basically doing nothing. Can't say that seems very fair to me but I have zero control over it and if the seller signed an agreement with that in there I can't do anything about it.
As a buyer if a person decides to represent themselves and not utilize a real estate agent. Will the seller still have to pay more than a 3% commission on the sale to their own agent if that agent is the only one involved in the sale and only represents the seller?
The seller pays whatever they agreed to pay the broker they hired. In many (probably most) cases, the broker they hire offers part of their agreed upon compensation to other agents in order to induce those other agents to bring their buyer clients to this house. It is possible, however, that the agreement signed by the seller & their marketing agent specifies an amount to be paid to the marketing agent and another amount to be paid IF NECESSARY to a buyers agent. The only way to know is to ask the marketing agent and or the seller.
So at least in some cases the seller's agent will get an extra commission for basically doing nothing. Can't say that seems very fair to me but I have zero control over it and if the seller signed an agreement with that in there I can't do anything about it.
You are assuming far too much. Even if a seller's agent doesn't directly sell a house, they do incur costs. There are advertising/administration costs to name a few. As previously stated,, their commission is established in the listing agreement and you have no control over that.
Not sure why you feel that the seller's agent won't have to do anything. Wow !!
Depending on the market dynamics in any one area, a seller might be able to get a clause that drops the commission if the buyer has no agent, but it won't be to half.
So in some (not all) cases, you can use the lack of an agent to get a lower price or to make your offer look more attractive to the presenting broker (the listing agent). In the case of getting a lower price, it is much more likely to be the case that this can be achieved if you are the only bidder and you negotiate skillfully enough to get to and leave a small gap between bid/ask- then you tell the listing agent, "You bridge the remainder".
I see. That's unfortunate. I was hoping to have a bit more leverage in negotiating the price if I did all the legwork myself and didn't use an agent on my end of the deal. So at least in some cases the seller's agent will get an extra commission for basically doing nothing. Can't say that seems very fair to me but I have zero c.ontrol over it and if the seller signed an agreement with that in there I can't do anything about it.
Without getting specific, it is a common misconception that the sellers brokerage "basically does nothing". They generally do a lot and can incur much in the way of cost(s). Also keep in mind that the real estate brokerage(s) are in business to make a living - it's not a hobby.
Just make the offer you want to make and let the seller and their agent hash out the rest.
Exactly. Build in an X% discount if you want. If the seller then feels like discussing it with their agent about what the commission is they will. If not, they won't.
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