representing yourself in a purchase - commission

[BiGeek]

You can represent yourself in a real estate transaction and yes you should mention it to the seller that you want to pay $X which may seem less in theory but with no buyer's agent your offer is really $X + 3%= Y and if he wants to make this deal happen then he better renegotiate with his agent who doesn't ave to split his commission in this deal.

When my brother bought his house, listing aent agreed to give him 1.5% rebate instead of going with a similar offer with a buying agent. It was a win win situation for everyone. Seller was still getting the same amount so he could care less, buyer got a rebate and seller's agent sold the house, collected 4.5% for his firm instead of collecting 3% after giving buyer's agent's share.

[TexasHorseLady]

Originally Posted by BiGeek

You can represent yourself in a real estate transaction and yes you should mention it to the seller that you want to pay $X which may seem less in theory but with no buyer's agent your offer is really $X + 3%= Y and if he wants to make this deal happen then he better renegotiate with his agent who doesn't ave to split his commission in this deal.

When my brother bought his house, listing aent agreed to give him 1.5% rebate instead of going with a similar offer with a buying agent. It was a win win situation for everyone. Seller was still getting the same amount so he could care less, buyer got a rebate and seller's agent sold the house, collected 4.5% for his firm instead of collecting 3% after giving buyer's agent's share.

You do realize that in your first paragraph you are interfering with a contract to which you are not a party, correct? The contract (yes, it IS a contract) between the listing broker and the seller has absolutely nothing to do with you and you are trying to influence (to state is VERY nicely given your description) one of the parties to that contract to attempt to change it for YOUR benefit.

Now, if you're willing to go directly to the listing agent and negotiate with them for part of their paycheck, as your brother did, that's entirely different.

[dunespeak]

If someone feels the way the OP does and they do not feel they should or could ask for a 3% price reduction (or whatever the % being offered to the Buyers Agent is) I usually suggest they check and see if Rebates are legal in their State
(They are legal in 40 States). If so then find an Agency/Broker that offers Rebates and at least get something back...
It's an option...in 40 States

Dept. of Justice Anti-Trust web Site
"Ten states forbid buyers’ brokers from rebating a portion of the sales commission to the consumer. Eight states require consumers to buy more services from sellers’ brokers than they may want, with no option to waive the extra items. HUD recently clarified its rule that rebates are permissible under RESPA as long as they are reported on the HUD-1 form."
What are the Laws in your State?

Competing models of real estate brokerage (Info from the DOJ)

[MikeJaquish]

Originally Posted by dunespeak

If someone feels the way the OP does and they do not feel they should or could ask for a 3% price reduction (or whatever the % being offered to the Buyers Agent is) I usually suggest they check and see if Rebates are legal in their State
(They are legal in 40 States). If so then find an Agency/Broker that offers Rebates and at least get something back...
It's an option...in 40 States

Dept. of Justice Anti-Trust web Site
"Ten states forbid buyers’ brokers from rebating a portion of the sales commission to the consumer. Eight states require consumers to buy more services from sellers’ brokers than they may want, with no option to waive the extra items. HUD recently clarified its rule that rebates are permissible under RESPA as long as they are reported on the HUD-1 form."
What are the Laws in your State?

Competing models of real estate brokerage (Info from the DOJ)

Thank you for posting documentation from DOJ of a 5.28% MEDIAN commission.
Maybe that will help people recognize that using 6% for illustration as the typical commission is inaccurate.

[dunespeak]

MikeJaquish......."Thank you for posting documentation from DOJ"

Appreciate you taking the time to read my post and the kind words...Thank you