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The system manipulates people into home ownership by making it seem there is less cost to buy in, because once you’re in you're probably going to stay in. If I’m a buyer who isn’t using an agent and I’m buying a house from a seller who is using an agent, you bet your ass I’m negotiating 3% off the sale price after they thought negotiations were over because that’s 3% more I would have to directly pay for the house. So even if a buyer isn’t a licensed agent they can still knock 3% off the sales price by showing it as a seller credit to buyer on the statement instead showing it as buyer’s agent commission. It’s just words, the words can be manipulated too.
So the conclusion is at the very least the buyer definitely is directly paying for their buyers agents commission no matter how it’s worded or shown.
For any buyer not using an agent, you should be entitled to a 3% discount off the negotiated sales price even if you aren’t licensed as long as the listing was advertising a 3% buyers commission. Don’t leave 3% on the table buyers, that’s YOUR money.
The listing contract between the listing broker and seller contains the commission to be paid. As a buyer, you have nothing to do with what the seller negotiated. Plus, having a buyer with no agent is a lot more work for the listing agent, because most buyers are clueless about getting good lender preapprovals, lining up inspections, using correct forms for repair amendments, and knowing what can legally be put in contracts, walking buyers thru buying process so they dont go out and run up credit cards buying furniture for house so it screws up dti, or closing long term accts on credit bureau. Listing agent also will need to attend inspection, since most sellers dont want someone being in their home unaccompanied for several hours.
Deals without 2 agents are a pain in the neck. I had one fsbo, that didnt disclose properly and almost ruined the sale several times. Tried to get some seller paid fees thrown out, and they couldnt be, nor would the va allow buyer to pay them. On another deal, the seller got mad at their listing agent and told them they didnt want their advice, and didnt want them at closing. During walk thru before closing, i found that seller removed the stainless steel double ovens and left a hole there. Delayed closing until they put back. Then at closing (they did not allow their listing agent to attend), the title co closer had to get me to leave my buyers closing to go explain the HUD to them completely.
I had a deal where the buyers closed out some credit cards they were not using, but it happened to be their oldest accounts so it dropped their score so they no longer qualified. On another deal, they wrote an offer on a form we couldnt use. So i had to rewrite. Then they kept trying to write things into the contract that arent allowed, so i had to keep redoing it. On the inspection that i had to attend, they wanted to reprogram thermostat for ac to see how it worked. Then they would randomly show up at house and ask sellers to let them in to come measure things/look at tile samples next to cabinets. Were delaying turning in docs to lender. It was a nightmare.
It's ALL the buyers money.
It's the sellers profit...
That is what's being negotiated.
That's what transactions come down too.
Savvy business knows to only have middlemen when the negotiations are threatening the bottom line.
With due respect for careers involved in real estate ...most are licensed to guard and steer the sides to keep money on the table for the agent. That's the reality.
I sold private. Enough said on who profited and who saved on their hard earned money. Win win.
With due respect for careers involved in real estate ...most are licensed to guard and steer the sides to keep money on the table for the agent. That's the reality.
Ugh, we are licensed by the state to protect the public's interests.
Do you think the Department of Real Estate or the Real Estate Commissions in each state are a joke?
What you originally conveyed in a brief way is that as an agent you are a civil servant ..just by using the term "public interest". A broker is not a public servant ...anymore then I am a public servant because I am licensed to drive a car by the department of transportation.
Pick another terminology to describe their objective tasks in maneuvering sales .
I am not a public servant or a public utility. I am licensed by the state of Colorado to broker real estate sales. The Real Estate Commission is charged with protecting the public interests.
I am not a public servant or a public utility. I am licensed by the state of Colorado to broker real estate sales. The Real Estate Commission is charged with protecting the public interests.
Better?
It's more in alignment to what I original stated. You are facilitating the deal with the end goal of a percentage.
That's your interest in such a career.
I can respect that as we each have motives to get paid.
Just because the commissions are shown on the sellers says doesn’t mean the seller is paying the commission. I honestly don’t know why this is so complicated. The buyer is the one bringing the cash or the loan to the pot, the same pot where the realtors get their commissions from.
Maybe the industry needs to show buyers agent’s commissions on their side of the statement and sellers agent’s commissions on the other side?
Time to go go go!!
you were (maybe still are?) in the title/escrow/closing business, yes? You have/had about a year, and 20 or so deals you ran through escrow, right?
how many times did your escrow company take the buyer's funds (be they downpayment or an all-cash purchase), and prepare a check to one or more brokers prior to recording? How many times in a mortgaged purchase did you take the Buyer's funds, keep them separate, and write a check to the broker(s) from that?
How many times did you pay the brokers before you paid the Seller's lender? brokers
How many times did you pay any state/local-required costs AFTER you paid the broker(s)?
In all those complex escrow deals you did - did you have any that were short sales or really really close? Any where the lender got paid, the locals got paid, but from the contract price, there wasn't enough for the broker compensation? Did the Buyerr write a check to the broker to cover their compensation?
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