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Was your erroneous attribution of his response deliberate...or did you not understand the gist of Mike's comments?
Quote:
Originally Posted by upgrader
Look, if I bring a buyer's agent into the mix, I think that typically carves out 3 percent of the commission.
Think again. While there may be occasions when a listing brokerage may lower their commission, you--as a Buyer--have no contractual relationship with them. They owe you nothing.
If I offer 300k on a property w/o a buyer's agent, the selling agent/broker typically would make 6 percent. That's an extra 9k vs. if I had a buyer's agent.
I'd prefer a 2 percent rebate so that the selling agent could get credit for a larger sale.
Would the selling agent rather present a 300k offer from a buyer/buyer's agent and lose that 1 percent (in this case 3,000 dollars)?
It's a "bucket of money" that's *already* been spent by the seller of the property.
Like I said, if it's *really* roasting your acorns, then sit through the class, get a license & you'll be *entitled* to a commission.
I'm not jerkin' your chain here - I did it myself & collected the checks.
That said, the commission check wasn't what made my purchases a "deal", it was having mls access & access to recent solds & pending deals, so I knew the market I was buying in and could recognize a "deal".
The commission is a nice "bonus", but its a very small part of the pie.
Re-negotiating a contract you aren't a part of isn't reasonable.
If the seller put in new carpet & "paid too much" (in your mind), would that give you standing to ask the carpet guy for a refund?
This is really no different & like I said, you're likely walking past dollars to pick up dimes.
It's a "bucket of money" that's *already* been spent by the seller of the property.
When it comes to purchasing property, the bucket of money is filled by the buyer. Yes, I'm doing my own research so I don't want a buyer's agent drinking from that bucket (and pushing me to buy BUY B U Y so they get a commission).
When it comes to purchasing property, the bucket of money is filled by the buyer. Yes, I'm doing my own research so I don't want a buyer's agent drinking from that bucket (and pushing me to buy BUY B U Y so they get a commission).
If you select an agent who is pushing you to buy, you need to choose to work with another agent.
Maybe I didn't get his gist. Hopefully he will come back and clarify.
Jack, I do question your point of view.
Question away. But please don't miss my main point--being that while you may be able to find a listing agent who will lower their commission under your circumstances, you should not have an expectation that they will do so because they have no fiduciary or contractual relationship with you as a Buyer.
Question away. But please don't miss my main point--being that while you may be able to find a listing agent who will lower their commission under your circumstances, you should not have an expectation that they will do so because they have no fiduciary or contractual relationship with you as a Buyer.
Fair response.
As the buyer, I think I have the right to convey conditions as well as purchase price.
I have the right to have an inspection from the inspector of my choice.
Do I also have the right to "hire" the selling agent under my terms?
I don't mean to be contentious here. As I said, I'm doing my own research.
Desirable homes are questionable given my finances, so a realtor discount is significant to me.
6% is generally max commission rate, but currently, those rates are very negotiable because if a rep is going to the typical list on mls and do open houses, they aren't really adding value to the marketing but fishing in a lake of random prospective buyers. if the rep has a buyer ready to purchase your property immediately, he deserves the 6%. if the rep has a client pool and reputation for selling fast, he/she may deserve a higher rate. i think sellers generally overpay. 6% is an inexorbitant amount of money for the work most (and i stress most) reps actually do.
As the buyer, I think I have the right to convey conditions as well as purchase price.
I have the right to have an inspection from the inspector of my choice.
Do I also have the right to "hire" the selling agent under my terms?
I don't mean to be contentious here. As I said, I'm doing my own research.
Desirable homes are questionable given my finances, so a realtor discount is significant to me.
You don't have any right to dictate conditions on a contract that's already been negotiated, signed & that you aren't a party to. The seller doesn't have the ability to re-negotiate that deal & the listing broker has no incentive to.
Playing "hardball" & pretending you're the bald guy on "Pawn Stars" isn't going to work. The listing agent gets their split *no matter what* & why would they agree to even "represent" you, as a buyer, if you don't value their time & want a piece of their pie - especially in a tight market, at the bottom end of the price range. If 2% of a deal is "significant" to you, that's even less incentive for them to bargain.
The demographic you're representing here is inexperienced, doesn't have any money & doesn't value the agent's time. Those are the same buyers who turn around & blame the agent for any problems with the deal or the property. Once an agent has a listing in a hot market, they're pretty much done & they're getting paid anyway. Why take on the risk of an inexperienced buyer who doesn't like you for a whopping 1% of the deal. Much easier to send you packing & find another listing. Any agent worth having would run from you & any agent willing to take your offer isn't the kind of agent you want.
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