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If you as buyer ask your agent to draw up the contract and handle the details, do not ask the seller to pay half the commission.
If you do, you are turning the agent into a duel agent, and they have to work both for you and the seller. They are not working for your best interest, but working for both which makes them a duel agent not really representing you the best they can.
You can ask the seller to lower the price, as they are not having to pay the agent a commission. You save the money to pay the agent this way, and the agent works exclusively for you. I acted as a buyers agent on many properties of all types, when in the business. I always had the buyer pay the commission, and I could usually get the price down enough to cover my fees, if the seller did not have to pay any commission. I was an investment real estate broker, and in all my years in the business, only sold 6 homes for personal residences, though I did sell as many as 14 homes in one afternoon to investors.
Sellers like this one, are much more willing to cut the price some, if they do not have to pay at least half the commission. Asking them to pay all or part of a commission, only gets them to be less willing to make any other price concessions. It usually ends up costing the buyer more, than it would have cost them if your agent offered them a contract at a reduction in price with no commission.
If you as buyer ask your agent to draw up the contract and handle the details, do not ask the seller to pay half the commission.
If you do, you are turning the agent into a duel agent, and they have to work both for you and the seller. They are not working for your best interest, but working for both which makes them a duel agent not really representing you the best they can.
That's not necessarily true. In many states, the agency relationship is established separately--and it's not based upon who might be paying the commission.
Perhaps you can offer some advice for the buyer on :
Avoiding paying a ridiculous amount of money for any guidance needed. 8k is the figure mentioned and that's absolutely insane and everybody knows that. 8k has already been determined like it's a sacred thing and it's not even understood what the buyer needs.
Structuring the commission incentive so that they are aligned with the interest of the buyer (who the BA supposedly represents). I.e. agent should not earn more when the buyer pays more. Paying more is against the buyer's interests so the BA should not be rewarded for that
How this can be structured to avoid a lack of clarity in who represents whom. The seller can easily misunderstand that the agent is looking out for her interests and there will be big issues if there are disputes during this. Since 8k is ridiculous for the buyer and they may not be able to afford that, the agent will need to convince the seller that there is value in it for her. This will muddy the waters of who's representing whom.
Why can't any agent here respond to specific points raised earlier? I've been told that I'm wrong without any points addressed. This is a discussion forum so just saying someone is wrong with no support for that view is not very interesting and it undermines your credibility. Or maybe you think that i'm so wrong that I deserve no response? But plenty of people are questioning what a BA does for this 8k and frankly it looks very bad for your industry if nobody can clearly articulate the specific value or address legitimate concerns with what's being suggested here.
I've been asked about my specific experience with a lawyer which i've answered in detail but have had no reciprocation.
"Insane?" Since you have offered a medical diagnosis, Doc, can you support it?
What is the agent doing for this transaction, and what has the agent done over the last year?
A comprehensive list might could (NC qualifier) support your medical diagnosis, and even save you from ridicule and accusation of trolling.
"Insane?" Since you have offered a medical diagnosis, Doc, can you support it?
What is the agent doing for this transaction, and what has the agent done over the last year?
A comprehensive list might could (NC qualifier) support your medical diagnosis, and even save you from ridicule and accusation of trolling.
That's not necessarily true. In many states, the agency relationship is established separately--and it's not based upon who might be paying the commission.
The buyer certainly can ask the seller to pay all or part of the fees for an agent to represent THE BUYER'S interests - he might also ask her to pay for his lawyer, for his home inspector, for his mortgage fees, and while he's at it, he could ask her to pay for a nice dinner for him and his partner and a nice pair of cuff links.
The problem is that the agents on this thread are suggesting that the seller will benefit from the buyer's agent who is there to look after the buyer's interests. That's confusing things. And if the seller agrees to pay for part of it, she could easily assume that this agent is looking after her too. Not everyone is sophisticated enough to understand all of this and could easily be mislead. Look at the tone of the agents who have commented. They have not made it clear in any way that the BA is there only to represent the buyer. If the seller starts to confide in the BA, then any semblance of fairness is gone. This arrangement is ripe for misunderstanding at least and abuse at most.
At least if the seller does pay for part of this circus, she is paying to incentivize the agent to make the purchase price as high as possible (to the seller's benefit) as this will maximize the agent's commission. So she might get some benefit in the end as perverse and convoluted as this all is.
I am a firm believer in making things as simple and as clear as possible. Already on this thread, people are assuming that the BA will be a dual agent, nobody has any idea why 8k would be spent or what services are needed. Nobody can explain why on earth an agent that is legally bound to represent the buyer would get higher commission for a higher purchase price when that is directly against the buyer's interest.
It all defies common sense. Too much money, Too complicated and convoluted, Too ripe for fraud and abuse.
And I don't think you will. These people are only able to spout platitudes but are completely unable to explain even the basics about their value in clear English. We're all just supposed to pay loads of money to these buffoons because 'that's how it works' and 'it's for our own protection'. Nonsense.
Does anyone really think that people will be paying 5-6% to sell their houses in 5 or 10 years? Or anything even remotely close to that? Of course they won't. A combination of things including better informed consumers, technology and disrupters who love to eat the lunch of stupid fat cats, and the end of endless property price increases will completely change the game.
Just like today we laugh at spending $3/hour for internet service as people did in the 90s.
Let's fix this now so we don't look totally stupid in front of our children. I don't think anyone should have to explain to their children that to sell or buy a house you had to hire a mercedes driving buffoon making six figures. They really won't understand this very well and it will just embarrass our generation.
The agent has put in a lot of work already, including the house we backed out of before. So, while we have bought and sold houses before without an agent, I don't want to do that now. I was thinking that splitting the 3% commission, which would be about $8K, with the seller would be a win win. Seller doesn't have to pay 6% to list the house (and we don't have to face the possibility that a seller's agent would talk her into raising the price she has quoted us), she only has to pay 1.5%. I've seen signs for FSBO's before that say buyers brokers welcome. Does that mean they're willing to pay the buyer's broker a commission?
We're not in the same state as the house we're buying, and the agent knows inspectors, etc. And the seller may not be comfortable doing this without an agent.
Yes, many FSBO's will pay a procuring broker (although they get a little testy if the "procuring broker" gets sprung on them in mid-negotiation.) That seems like a win-win to me, too. Your agent is compensated for their time, experience and effort and will be in a position to monitor inspections and advise you on strategies, the seller pays a minimal commission compared to what they might expect to pay a separate listing agent, and you get a house at a good price. Just be sure that you aren't getting into a dual-agency situation, where the agent represents both the buyer AND the seller. Ideally, they represent only you. The agent may have the seller as a customer instead of a client -- that doesn't involve fiduciary responsibility. But everyone needs to be clear on the agent's role in this transaction.
I only see win for the agent that didn't help in finding this house
Agent may not have found THIS particular house -- but has helped the OP weed out many other houses in the area, as well as found another house that the OP waffled on last November.
Agent may not have found THIS particular house -- but has helped the OP weed out many other houses in the area, as well as found another house that the OP waffled on last November.
Maybe or maybe not. This isn't 1995 anymore. Buyers are fully capable of finding houses on their own. They aren't at the mercy of real estate agents anymore in that regard.
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