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Old 11-04-2019, 02:45 PM
 
470 posts, read 634,941 times
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Has anyone used Purple Bricks, or know anyone that has? Could be quite a savings.

https://www.purplebricks.com/
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Old 11-04-2019, 10:06 PM
 
Location: San Diego
4,407 posts, read 5,803,428 times
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Quote:
Originally Posted by Lillp View Post
I can't imagine why you wouldn't want a buyers agent working for you?
The OP probably wants to split the commission with the listing agent.
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Old 11-06-2019, 06:45 PM
 
921 posts, read 917,321 times
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Yes, saving 3% really adds up! Say a 400k price, that would save me 12k.
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Old 11-07-2019, 03:27 PM
 
61 posts, read 193,722 times
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Quote:
Originally Posted by mixxalot View Post
Yes, saving 3% really adds up! Say a 400k price, that would save me 12k.
Sure, I'm willing to explore this theory with you. To clarify, you are not actually asking about preparing a purchase contract then taking a house from accepted offer to close on your own, but instead looking for a sellers agent that will dual represent you on a transaction?

Let's look at this from the other side of the transaction. An agent has marketed a 400K property for their client and negotiated a full 6% commission, which they are planning to split with the buyers agent. They are counting on a 12K commission. The house is on the market and they get 3 offers the first weekend and preparing to present to their sellers on Monday morning. How do you compete?

Listing agents help their sellers not just assess the highest net from a transaction, but also assess the strength of an offer. They have already done most of the work for their 12K commission on the listing side and now they want to get paid. Will this house close? No one wants to put a house back on the market 30-60 days later because a buyer didn't perform (seller or agent). It's not just about the highest price, it's showing that you are serious about the home, have proof of funds, a pre-approval, and are knowledgeable enough about the process not to get cold feet. So let's look at two situations:

1) You approach the listing agent and ask them to represent you in this transaction in exchange for a 3% rebate on their commission. So now you are asking them to 1) go to their client and get approval for dual representation (the first client to sign with an agent has first right of refusal on dual representation) 2) prepare your sales offer, including contingencies, tracking down POF and pre-approvals 3) schedule and attend your inspections, manage both sides of the process, and fairly represent you during purchase price and repair request negotiations for the same 12K in commission. All while having other offers in hand, with an expiration date, from buyers that have been qualified as serious buyers by another agent. Can't imagine why the seller or the agent would agree to that without some incentive right? Additionally, some brokerages to not permit their agents to discount their commission, which means there are some houses that you just wouldn't be able to do this on.

2) So lets say you offer 1% more then the next best off on this house to incentivize the seller to take your offer even though you don't have your **** together. You are losing yourself 4K in savings there. The listing agent agrees to dual representation for a 4% commission, you are losing another 4K in savings there. But you are still maybe saving yourself 4K, which is nothing to scoff at! But there are so many ways you can lose 4K if you aren't paying attention. It is standard to split escrow in your area? Was the house priced appropriately in the first place or are you overpaying by 2%? Did the listing agent really advocate for you enough during the repair request? Did you actually do all the inspections? How much does a lawyer cost to review the transaction if you feel that not everything was disclosed?

I'm not saying it can't be done, just that I don't think there is enough of a benefit there on the "first time homebuyer" side to become an expert. You don't have access to the back end information on homes that agents do through their paid subscription to MLS (is it a probate sale, does the seller need a lease back, did that house that close next door close with multiple offers, or one offer and the seller paid 4K in closing costs?). You don't have physical access to most homes without an agent showing them to you, which means you also can't really compare condition of recently sold homes and the one you are interested in. Do you know how a house is appraise and what happens if the house doesn't appraise for the sales price? It's not rocket science, but as far as cost savings, you are probably better off learning how to reroof or plumb a house then to purchase without an agent.

Last edited by Lillp; 11-07-2019 at 04:17 PM..
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Old 11-07-2019, 03:29 PM
 
61 posts, read 193,722 times
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Quote:
Originally Posted by NorCalMan View Post
Has anyone used Purple Bricks, or know anyone that has? Could be quite a savings.

https://www.purplebricks.com/
They pulled out of the US Market this summer.
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Old 11-08-2019, 04:51 PM
 
470 posts, read 634,941 times
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Quote:
Originally Posted by Lillp View Post
They pulled out of the US Market this summer.
Thanks for that info.
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Old 11-08-2019, 07:45 PM
 
921 posts, read 917,321 times
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Actually sites like Redfin and Openlistings have MLS back end access and buy without agent and save 3%
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Old 11-08-2019, 11:48 PM
 
61 posts, read 193,722 times
Reputation: 57
Neither of those sites publish agent notes, offer instructions, or attached documents from the MLS listings. They also don’t publish the closing data I referred to (number of offers, concessions), for you to run comps when considering an offer price. RedFin is one of the services that offers buyers agent representation with a buyers rebate (which they state averages $1,700).

As you mentioned, they also do provide an option to purchase without an agent, stating a 2% savings, but it has to be one of the homes that Redfin represents the seller on, and it’s available in limited markets (Dallas, Austin, Boston, Houston, San Antonio, and Virginia).

There are actually other brokerages that do similar (prenegotiate a reduced listing commission if they bring the buyer), you would be back to dual representation, you will just have to ask.
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Old 11-09-2019, 09:58 AM
 
921 posts, read 917,321 times
Reputation: 438
So is a buyer agent still worth using in 2019? If so, why?
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