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Old 08-21-2013, 01:14 AM
 
170 posts, read 196,943 times
Reputation: 107

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Hi I wanted everybody's opinion on this situation.

I originally put in an offer for a home that just came on the market for $350K it was listed at $365.

I am using the listing agent as a transaction broker. Then another offer comes in I am not sure for how much, but the listing agent told me if I wanted to up my offer price. I upped it to $355K. This would be equivalent to a full price offer since I don't have a buyer's agent and I should save 2.5% on the commission. The seller's countered back at $362,500. When I asked the listing agent about this she said I wasn't saving any money on the commission because of the listing agreement they have with the sellers. I was wondering what you would do in this situation? Should I up my offer price or keep it at $355K and move on if they don't choose me.
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Old 08-21-2013, 05:44 AM
 
1,263 posts, read 2,900,643 times
Reputation: 1884
Pay what you think it's worth - how much money goes to the broker isn't really your concern when the sellers are paying him anyway.
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Old 08-21-2013, 06:42 AM
 
4,800 posts, read 2,412,326 times
Reputation: 3043
Quote:
how much money goes to the broker isn't really your concern when the sellers are paying him anyway.
I really don't follow this logic. What the sellers are paying a broker is of a direct concern to any buyer since it impacts the net return to the seller.

It would be nice to be able to connect directly with the seller to discuss their net return outside of brokerage influence.
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Old 08-21-2013, 07:05 AM
 
4,567 posts, read 8,961,604 times
Reputation: 6661
Quote:
Originally Posted by Pesare View Post
Should I up my offer price or keep it at $355K and move on if they don't choose me.
No one can answer that except you.
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Old 08-21-2013, 07:17 AM
 
Location: Upper East, NY
1,145 posts, read 2,719,263 times
Reputation: 561
It means there is less commission the Seller pays if there is no buyer's broker.
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Old 08-21-2013, 07:29 AM
 
248 posts, read 581,212 times
Reputation: 186
So you want to somehow work out a deal with the seller that screws the seller's agent?

I don't think you should worry about this. Just put an offer that you think is fair for the house. Now if the agent is lying by saying that they have already set up a revised agreement with the sellers and you want to find out if that is true or not, then you might want to contact them.
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Old 08-21-2013, 07:40 AM
 
1,826 posts, read 2,649,709 times
Reputation: 3705
The question has been asked 100 times on here. Many agents will tell you its none of your business what the agent makes. If you ask the agent about it, and they tell you that they wont reduce the commission for you then you need to go get your OWN agent, tell that agent you have the house, you have the financing, you are 100% ready to close on it, but you want a rebate of 1 or 1.5% of the commission. You can shop that to several agents, and I can guarantee you that you will find one who will take it. 1-1.5% of anything is better than nothing.

The listing agents who wont reduce their fee for you the buyer should then have then have to share the commission with your agent. Just inform the listing agent that you wanted another agent to look out for your best interests (b/c they clearly are not) since you are paying for it either way...you never have to inform the listing agent that your buyers agent is rebating a portion of the commission back to you. Agents HATE this, especially listing agents who are seeing 1.5-2x the normal commission.

You are in the right here, just stick to it, and you will get it closed. In the end the listing agent still wants to get paid and will work with you if you are the highest bidder....its all about money, its business, treat it like business and be cut-throat.
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Old 08-21-2013, 07:53 AM
 
104 posts, read 259,511 times
Reputation: 56
in my neck of the wood, the seller pays 5% commission. if the the buyer has an agent then the 2 agents (buyer's and seller's) split the commission to 2.5% each-still the seller pays the 5 % the agents divide it amongst themselves. if there is no buyer's agent the seller's agent gets the full 5%. that is why listing agents try to bring buyers to their listings, to get the full commission.
as a seller you should calculate that 5% into your bottom line. it really does not affect the buyer at all.
that is why there is FSBO to save on the commission.
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Old 08-21-2013, 07:55 AM
 
Location: Martinsville, NJ
6,162 posts, read 11,651,729 times
Reputation: 3968
Quote:
Originally Posted by Pesare View Post
Hi I wanted everybody's opinion on this situation.

I originally put in an offer for a home that just came on the market for $350K it was listed at $365.

I am using the listing agent as a transaction broker. Then another offer comes in I am not sure for how much, but the listing agent told me if I wanted to up my offer price. I upped it to $355K. This would be equivalent to a full price offer since I don't have a buyer's agent and I should save 2.5% on the commission. The seller's countered back at $362,500. When I asked the listing agent about this she said I wasn't saving any money on the commission because of the listing agreement they have with the sellers. I was wondering what you would do in this situation? Should I up my offer price or keep it at $355K and move on if they don't choose me.
What's the house worth to you? Offer that.
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Old 08-21-2013, 08:10 AM
 
55 posts, read 70,470 times
Reputation: 31
This is simple. If there is a buyer's agent then he/she get's 2.5%-3%. If there is no buyer's agent and buyer is buying DIY then he/she is entitled to that money. Its all the same to the seller. Of course, seller's agent would like to pocket that money but its not fair. This needs to be mentioned in reltor-seler aggreement. If buyer is not asking for it then seller should pay discounted commission to his agent.
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