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Thanks, sorry I wasn't sure where to post... I just joined this site. I live in Denver so I went with that! It was my understanding if you don't get an agent you could negotiate lower on the price of the house since the buyer isn't paying an agent is this true??
How are you going to see houses without an agent? Are you only interested in for sale by owner?
If the house is for sale by owner you MAY get a slight price benefit not using an agent. But if it is on the market and listed with a real estate agent, the owner/seller has to pay full commission regardless of whether the buyer has an agent or not.
I have been a buyer of personal and investement properties since 1972. Using an agent in the buying process is invaluable. They can get you into properties; they will get you statistics showing sale prices for what other homes similar to one you want to make an offer on, and they will smooth over all the issues with getting offers in and contract solidified. I know how to do all these things myself after 40 years of active buying. I would never purchase a property without an agent.
Definitely get an agent. Most houses are sold through a real eastate office. Since the seller pays the commission, there is no reason to not have one. There are a lot fewer FSBO houses on the market. You would be severely limiting yourself by trying to snag a deal that way. If they're a real deal, investors will snap them up. If not, they're no advantage over a listed house, and they could be a lot of trouble if neither of you are familiar with the process. Even if you have an agent, that agent could see if a FSBO seller would be willing to pay half the commission, as there would be no listing agent to get the other half.
But seriously, I wouldn't dream of buying in a new market without the help of a local realtor. That's what we did when we bought a retirement house in Arizona. It made life so much easier, because she knew the area and was able to point out things that would never occur to someone from Alaska. In the end, we got a great house in a great location at a great price. And our realtor also knew which contractors to use, which also turned out to be great for us.
How are you supposed to see houses without a realtor? Are you going to call every agent that represents a home for sale? Each one will want to represent you. It makes no sense and a lot of unnecessary work on your part! You don't pay the commission, BTW the seller does!
I am planning on buying a small house or townhouse in Florida later this summer.
I'm planning on buying without an agent and cash upfront.
Any advice would be great!!
1) Don't buy a house in FL while you live in CO
Rent in the area for a while first... then look around.
2) WHEN you're ready to look absolutely engage with a RE agent to show you around
and generally to help with all the questions and processes once you decide you like house X.
3) HIRE an experienced RE attorney to review all documents and handle the closing.
When a question comes up rate their counsel highest.
4) If you can qualify for a mortgage you probably should have one.
Put that cash into other investments.
You should really consider taking a first time home buyers course before continuing your search.
even with your own agent, you can offer "all cash" as a bargaining tool, but don't offer upfront. A 20 or 40 percent down payment is a better option.
Some home owners may want to take advantage of a cash transaction in order to hide some money from the sale (dodge taxes) and this may work for both parties. besides that, cash in your possession brewing some kind of interest is more valuable . I would rather pay monthly during a 15/30 year span, and have that security blanket of "cash" available for worse case scenarios.
Thanks, sorry I wasn't sure where to post... I just joined this site. I live in Denver so I went with that! It was my understanding if you don't get an agent you could negotiate lower on the price of the house since the buyer isn't paying an agent is this true??
Not really. In some situations, like if you're buying your neighbors land, he knows you're interested and you agree on a price, that might be the case. My dad did that. Neighbor approached him about selling it, a few years later Dad was ready to sell, so he sold it to him for 6% less than he expected to sell for it, since they only had to go to the attorneys office. Or, if you're buying from a family member and you both agree on the price, that might be the case.
But, assuming that you even get anyone to show you the house, you are offering cash to someone being advised by a professional. A professional that you can hire that you don't pay for!
So it doesn't seem you are looking only for by owners. So the seller would have their licensed, experienced agent to define and inform and warn but you would be...clueless? because of lack of knowledge and experience. Doesn't sound like a fair match.
So it doesn't seem you are looking only for by owners. So the seller would have their licensed, experienced agent to define and inform and warn but you would be...clueless? because of lack of knowledge and experience. Doesn't sound like a fair match.
Agree. I would encourage OP to get an agent of your own to ensure that you will not be taken advantage of. As mentioned above, there is a good chance you won't save any money anyway. I would be far more wary of the more realistic downside of this decision costing you a lot of money.
Thanks, sorry I wasn't sure where to post... I just joined this site. I live in Denver so I went with that! It was my understanding if you don't get an agent you could negotiate lower on the price of the house since the buyer isn't paying an agent is this true??
Not unless it is for sale by owner. The owner still pays the negotiated commission with their realtor. Realtors will share the commission with another realtor if that other realtor is involved but the buyer pays no more. My realtor told us recently that 99% of her job is not selling the house it is closing it. Houses usually sell by themselves but the details is in the closing from negotiating with both parties to inspections and final closings. Getting the parties to follow through on the offers becomes more challenging than the offers themselves. If you plan on sticking with for sale by owner then go ahead and not use a realtor but be sure you know what the comps are, otherwise, why not use a realtor and let him or her do the footwork to make the closing happen.
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