If I found a house, do I need a realtor to make offer ?

[FLBob]

I've always had a problem working as transaction broker with both sides. I'm not saying I can't mediate a contract, but I sure can't negotiate as a transaction broker. My be it's just semantics but negotiate connotes an attempt on my part to achieve better terms than those offered.

I also worry about my objectivity, I've developed a relationship with the seller and here comes a stranger that calls on the property and wants to make and offer. I know I'm going to be honest and fair but don't I want to get a better deal for the seller if I can? I get tied up in knots when the buyer looks at me and starts asking "So what do you think I should offer".

It even gets worse when there are multiple buyers, suddenly the issue of both sides enters the picture.

Even worse when the buyer I'm working with goes to contract and issues arise with the inspections, and I need to be impartial when both parties are asking "what do you think I should do".

I'm not a big fan of transaction broker. I know I'm in the minority.

The one thing that's great about this forum is that we have the opportunity to discuss and compare agency law. Hopefully the public takes the time to get a better understanding, and to realize that each state handles agency differently.

[palmcoasting]

Are you unable to work in an agency capacity because your broker will not allow it?

I have no problem with it. I give them choices...you can do this or this or this..which would you like to do? They ask what will happen...I say it could be this or this or this.
To counter act those consequences you can do this or this or this. And that's for both sides. I don't see what is the difference between that and 'negotiating'. No one negotiates terms that the seller/buyer has pre-authorized. And the only way they do that is by you explaining...you can do this or this or this and ....etc.
Am I missing something?

[Bill Keegan]

Originally Posted by palmcoasting

If you don't consider reasoning, showing facts, educating for both sides, 'negotiating' then you are correct. I help the buyer and the seller come to terms that are favorable to both parties...which in actuality is what you do. If they aren't favorable to both parties then the deal doesn't come to fruition....regardless of what type of agency you are working under. You are, or should be, 'negotiating' the terms your seller relays to you they would like for you to use. If you are negotiating or 'relaying' something else, you are over stepping your bounds. So, please, explain to me, what is the difference?

My client often tells me what to offer now, and what he is willing to pay if he must. My job is to get the house under the most favorable terms I can, as close to the initial price as possible, and no higher than the final price. I use my negotiating skills & strategies to sit in front of the seller & his agent and make the deal happen.

Often, it is just as you say. My client gives me his "next offer" I take that to the other party and I opresent it. I still use my skill and knowledge present it in the most favorable light, to present the appropriate set of backup facts, to judge how it is received, and to make judgments about the other side's reaction, which often includes a lot more than the next number he puts on the counter offer sheet.

You cannot do those things if you are trying to "negotiate" for both sides.

[palmcoasting]

We do nothing different than you do. I present offers/counter offers favorably. I present the appropriate set of back up facts, I can see just as you can see how it's received and can offer alternatives to help the parties come to a meeting of the minds.
That's a skill. The strategy is to find a meeting of the minds and make the deal happen.
I'm not in an adversarial position, I don't have an 'attitude' which often times an agent will bring to the table and muck things up. Sometimes agents are their own worst enemy regardless of what type of agency they work under. (not saying you or all single agent reps)
But what you are describing is what a transaction broker does.

[Bill Keegan]

Originally Posted by palmcoasting

We do nothing different than you do. I present offers/counter offers favorably. I present the appropriate set of back up facts, I can see just as you can see how it's received and can offer alternatives to help the parties come to a meeting of the minds.
That's a skill. The strategy is to find a meeting of the minds and make the deal happen.
I'm not in an adversarial position, I don't have an 'attitude' which often times an agent will bring to the table and muck things up. Sometimes agents are their own worst enemy regardless of what type of agency they work under. (not saying you or all single agent reps)
But what you are describing is what a transaction broker does.

Unfortunately, it's not. Negotiation is an adversarial process. It's not necessarily a hostile process, but it IS adversarial. The seller wants to sell the house for the highest price possible. Wouldn't you agree that's true in almost every case? The buyer wants to buy the house for the lowest price possible. Wouldn't you also agree with that, again almost every time? Yes, they both want the transaction to come to completion, but each has a slightly different goal within that larger construct, right?. While a sale at $X to close in 30 days would be acceptable to both, the seller would like, and expects his agent to help him get, $X *1.1, to close in 20 days, while the buyer wants to buy at $X * .9, and close in 45 days, so he can get his existing home sold. How can you advocate both positions simultaneously?
Yes, you can offer all the parties the benefit of your experience, as far as general rules & possibilities. But when one of them asks you "What's the best response for me to make in order to get the deal I want?" how do you answer that question?

[sunny57]

Originally Posted by heydade

I find all the houses I want to see, my realtor is a friend...I bring him a long so he can make some money on his commission. He is a lazy realtor though and makes mistakes in his contracts that I catch....yes, ME. Little things like that. Anyhow, I want to make an offer on a house. Can I just contact the sellers realtor and put in an offer ? I have heard that since the commission only goes to the sellers realtor now, that the owners can negotiate more on the price since they don't have pay another realtor involved. The less realtors = more money for the seller which means more of a possible discount for me. Right ?

heydade...same sort of post happening on the Denver board...questioning buyers rep agency...unless you have bought and sold several homes you will need a buyers rep. If you feel your friend isn't qualified than find another agent. Please.. don't try it alone...as others have said... "you don't even know, what you don't know"...could be an expensive learning curve.


I've changed my oil filter... does that make me a mechanic? I've doctored my pets...does that make me a vet? I've done a few watercolors does this make me an artist? I've played on a few sports teams... does that make me an athlete? I've played Texas Hold'em online ... does mean I'm a gambler?

Of course not...beyond the obvious educational requirements.... it boils down to "real" experience & how proficient you are with your craft. We all have a multitude of talents...some of which... we are more experienced in than others...but this doesn't by any stretch of the imagination ... make us professionals in all we dabble with.
Sunny