Cut Out the Seller's Agent

[palmcoasting]

Yes, it's entirely within your rights to call the builder.

[heavyweight]

Originally Posted by Silverfall

If the agent is not the principal broker, I would ask the principal broker to assign a different real estate agent to handle the listing. The listing belongs to the PB and not the agent so they can do that.

This was excellent advice.
My agent contacted the principal broker of the seller/builder. The PB immediately dismissed the agent, apologized for all the trouble, and produced a signed contract within hours. It was such a relief to have the transaction handled seamlessly after weeks of dealing with the ineffectual agent. I am looking forward to closing on my home.

[scgraham]

Originally Posted by callsnap

I made a full price offer on a home but have issues with the seller's agent. On two separate occasions he's prepared vague contract addendums that should have been written or at least reviewed by an attorney. When my attorney reviewed them, he advised I not sign.

A week after the offer was made, the builder initialed each page of the contract but neglected to sign the final page or the buyer's addendum. My (buyer's) agent pointed this out as we were eager to get under contract. So, the seller's agent signed the contract himself! When questioned, he admitted he doesn't have power of attorney but "does this all the time".

The seller's agent promised to have the builder sign the offer by Monday. But, I went ahead and withdrew my offer today. After we closed, my agent and attorney were going to report this man to the Real Estate Commission I suppose they'll proceed with that now.

There's still plenty of inventory in Durham NC. Still, I hoped there was a way to get the home without having to go through the incompetent agent. So CD'ers...is it possible to proceed without the seller's agent?

This scenario further demonstrates why a home buyer must have a good buyer's agent; all too often, however, the buyer tries to cut out the buyer's agent thinking he/she is saving money.

The Washington Post gives buyers the “heads up” on how a real estate transaction works in the real world.

"Some people just don't like working with agents. Other buyers go without them thinking they can negotiate a better deal on their own by working directly through the listing agent. Often they think that by working on their own, they are entitled to a discount on the sales price equal to what the buyer's agent would have received as commission. But the payment structure doesn't work that way. In that situation, the seller's agent just keeps the whole commission."

A buyer should seek out a good buyer’s agent who is focused on saving the buyer money through strong negotiations throughout the entire transaction.

[Austin-Willy]

Originally Posted by scgraham

The Washington Post gives buyers the “heads up” on how a real estate transaction works in the real world.

"Some people just don't like working with agents. Other buyers go without them thinking they can negotiate a better deal on their own by working directly through the listing agent. Often they think that by working on their own, they are entitled to a discount on the sales price equal to what the buyer's agent would have received as commission. But the payment structure doesn't work that way. In that situation, the seller's agent just keeps the whole commission."

This is overly simplistic and incorrect information written by someone who has been criticised for not looking out for the interests of a buyer.

In fact, it is possible for a buyer to get a reduced price based on the seller not having to pay a commission to the buyer's agent. The listing agent will typically have to agree to such an arrangement, but in the current market I have found a lot of willingness to do just that.

On the other hand, to be fair to the seller's agent, the buyer is going to have to do all of the work that the buyer's agent would normally do, which will require familiarity with the process and a lot of leg work. But it is not accurate to say that the buyer can't get a lower price by not being represented by a buyer's agent.