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We are experienced buyers, buying a home for cash and only have a finite amount to spend without taking on a mortgage. We've found a home just over our limit. They've already reduced their price significantly. Because we are not working with a buying agent (will have a thorough inspection and real estate attorney review the transaction) can the seller rebate some of the money they are saving by not paying a buyer's agent commission to us or are they obligated to pay the entire 6% to the selling agent? We are in eastern Washington if that makes any difference.
You can make a lower offer and ask the realtor to add a part of his commission towards the sales price so the seller will accept the offer and see what happens. I had realtors offering that (in short sale listings) to me since they wanted the deal to be done and I respect that very much. They still will have at least 3 or 4% instead of 3% if you would have had a buyers agent.
With no agent involved, the seller can do anything they wish in relation to the price. You mention they have already reduced the price a substantial amount. Don't you think they may have already considered that they are not paying a commission in arriving at that reduction?
You can ask, nothing ventured nothing gained. I would do it tactfully if you don't feel you are in a position to push them. You may upset them if they feel they have already dropped the commission and you are still pushing them.
They are obligated to pay what their listing agreement is. It may not be 6%. Some agencies only list for 3% or 4% now, total (would split that with your buyers agent). But once the listing contract is signed, the Seller is locked into an agreement with the Selling Broker.
I believe Washington has a fairly good housing market right now, but make your offer. It is up to the Sellers Agent to agree to reduce their commission to sweeten the pot for the Sellers to accept. Just explain to the Agent when you make the offer why you've reduced the price. The Selling Agent and the Selling Broker would have to amend their commission amount with the Seller in writing separately.
They are obligated to pay whatever agreement they made with the real estate company. The company may elect to contribute some back to the seller or off the price but that is their discretion.
Many companies aren't interested in doing that and many sellers figure if there's any money to be saved they want it for themselves. I suggest trying to come in low and they may go for it. Then you can work with it. If the property has been for sale as long as you say
1-they may be willing to work with you
2-it's already overpriced and you may not be getting a good deal anyway.
I actually suggest hiring someone to represent you and see what you can make happen. Heck, if worse comes to worse take a small personal loan or mortgage and buy the home.
Anything can be negotiated if they really want to sell the house and all parties agree. One person stated that they may not want to come down any further because they already have. Although that is true an all cash buyer is rare and is pretty much a guarantee that financing won't be an issue. Even in Eastern Wa it is a buyer market. I would say go for it and the worst they can do is say no.
I think it is wise that you have an attorney assisting you with this purchase and not going it alone. Good luck.
If you don't have an agent, the other realtor would get the full commission as contracted. But, you can use that realtor and ask them to lower their commission since they will getting both sides. We do it sometimes with an Amendment to the Listing Contract.
We are experienced buyers, buying a home for cash and only have a finite amount to spend without taking on a mortgage. We've found a home just over our limit. They've already reduced their price significantly. Because we are not working with a buying agent (will have a thorough inspection and real estate attorney review the transaction) can the seller rebate some of the money they are saving by not paying a buyer's agent commission to us or are they obligated to pay the entire 6% to the selling agent? We are in eastern Washington if that makes any difference.
Thank you for any insight you can give us!
This comes up repeatedly in this forum and elsewhere. I see several thoughtful responses (above) in this instance.
You're an experienced buyer, and you have an attorney representing you - I'd be grateful if you'd let us know what your attorney says when you ask this question...
Two out the last five seller listing appointments the sellers have asked if there is no coop broker, can the total commission be lowered, and would you put that in the listing contract?
You have no right to interfere with the contract between the seller and the listing brokerage.
How would you like it if once under contract some other buyer said to the Sellers - we will give you more $$ if you sell the house to us instead of them? What if the listing broker talked to your attorney and offered him the coop? Attorneys like the coop fee.
It's not a "win win win" situation if "the house gets sold in this market." There is still all the work to be done, and the transaction has more liability than a two brokerage transaction.
Seems like you are getting ahead of yourself! What about?
Why are you shying away from a small mortgage.....for some the liquidity that that represents[ ex cash on hand} would be an advantage. How did you determine that the home is valued correctly.....a buyers agent should have access to data that is not available to you and if hey are good the actual home behind that data. You could be overpaying....the listing agent and agencys fuduciary duty is to obtain the highest price for the seller....who is working for you? Remember very recent sold prices are the most reliableguide, careful w/ online value sites like Zillow. They had my clients 250,000 home valued at 325,000, another clients sale of 475,000 at 430,000....caution...caution caution....rely on a proven professional....you want to purchase a home below the banks appraisal price.......then you will not be concerned that your paying a commision.....your agent would have earned it=qestion for you;3044490]We are experienced buyers, buying a home for cash and only have a finite amount to spend without taking on a mortgage. We've found a home just over our limit. They've already reduced their price significantly. Because we are not working with a buying agent (will have a thorough inspection and real estate attorney review the transaction) can the seller rebate some of the money they are saving by not paying a buyer's agent commission to us or are they obligated to pay the entire 6% to the selling agent? We are in eastern Washington if that makes any difference.
Thank you for any insight you can give us![/quote]
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