Real Estate Question: Buyers Agent Needed? (1 Viewer)

[skycriesmary]

I'm thinking about making a all cash offer on a home next door. I emailed the listing agent and asked what was the best all cash price. He responded, asking me if I had a buyers agent, or would he be writing the offer (Dual Agency). I don't need a buyers agent to negotiate, as I know the top amount I'm willing to spend.

My girlfriends brother is a real estate agent who's been in the game for a long time, and I have no problem including him in this, even though it'll increase the asking price. Piece of mind might be worth it, to look over agreement, and know what questions to ask about the property that I might not. 

Any FBG's in the know have any thoughts on this? Should I just pony up the additional cash for piece of mind, or am I shucking thousands for something that could be very straight forward with a few checks and balances?

 

[Zegras11]

I'm thinking about making a all cash offer on a home next door. I emailed the listing agent and asked what was the best all cash price. He responded, asking me if I had a buyers agent, or would he be writing the offer (Dual Agency). I don't need a buyers agent to negotiate, as I know the top amount I'm willing to spend.

My girlfriends brother is a real estate agent who's been in the game for a long time, and I have no problem including him in this, even though it'll increase the asking price. Piece of mind might be worth it, to look over agreement, and know what questions to ask about the property that I might not. 

Any FBG's in the know have any thoughts on this? Should I just pony up the additional cash for piece of mind, or am I shucking thousands for something that could be very straight forward with a few checks and balances?

Not understanding why you have to pony up more cash when the seller pays both commissions....

 

[skycriesmary]

Not understanding why you have to pony up more cash when the seller pays both commissions....

They do, but the thinking is if they didn't have to pay the buyers agent commission, I'd get quoted a lower all cash price. 

 

[Zegras11]

They do, but the thinking is if they didn't have to pay the buyers agent commission, I'd get quoted a lower all cash price. 

So right now the selling agent would get both commissions.  That's the agreement he has with the seller if it's in the MLS. (he also might have an agreement to take less than that if he reps both sides, but that's his info to tell you)

 He can amend that agreement and take less.  I did that in January when I had a cash buyer on a place for $162k.   Buyer called me up and said he would offer $158k cash if I took off the buyers commission with my seller.  My seller made $800 more (4800-4000), so I did it and represented both the buyer and the seller.

You should talk to GF's brother.  There are so many things besides negotiating price.  You really need someone to advocate for you if there are any inspection issues.

 

[comfortably numb]

do you know what % commission is agreed upon already?

 

[skycriesmary]

do you know what % commission is agreed upon already?

No, not yet. I'll prob just have my girlfriends brother represent me, happy to give him the business, and have peace of mind. Only a 325k asking price, looking to see if they'll accept 275k, but first asking what best all cash price is. Normally in this market, I'd be laughed out of town, but there's a unique situation with the lot, basically, same company bought this house, with large lot and built huge house right in front of house I'm looking at. So, the curb appeal is ####, but it would be great as a rental, and would pencil out. 

 

[comfortably numb]

No, not yet. I'll prob just have my girlfriends brother represent me, happy to give him the business, and have peace of mind. Only a 325k asking price, looking to see if they'll accept 275k, but first asking what best all cash price is. Normally in this market, I'd be laughed out of town, but there's a unique situation with the lot, basically, same company bought this house, with large lot and built huge house right in front of house I'm looking at. So, the curb appeal is ####, but it would be great as a rental, and would pencil out. 

Good luck Chet 

 

[skycriesmary]

Good luck Chet 

If only...

 

[jon_mx]

They do, but the thinking is if they didn't have to pay the buyers agent commission, I'd get quoted a lower all cash price. 

There really is no such thing as buyer's agent commission.  The agreement is almost always a fix percentage, say 6 percent.  It does not matter if there is a buyer's agent involved, the seller will have to pay the commission of 6%.  Realtors have separate agreements which allow them to split the commission, but that has nothing to do with the agents agreement with the seller. 

All you accomplished by not letting your BIL get a commission is to allow the seller agent to double up. 

 

[Nugget]

I went with the sellers agent and they lowered the commission from 6% to 5% to get the deal done.  The agent didn't want to budge initially.   

If you can save a couple grand you can hire a lawyer to look over the paper work for less money.

 

[skycriesmary]

There really is no such thing as buyer's agent commission.  The agreement is almost always a fix percentage, say 6 percent.  It does not matter if there is a buyer's agent involved, the seller will have to pay the commission of 6%.  Realtors have separate agreements which allow them to split the commission, but that has nothing to do with the agents agreement with the seller. 

All you accomplished by not letting your BIL get a commission is to allow the seller agent to double up. 

Understood, thanks for the explanation. No, as mentioned above, I'm leaning towards having a buyers agent. I was just looking for anything outside of what i can Google regarding this transaction.

 

[Brunell4MVP]

Jon_mx is correct. 

When we sell a house, our agreement with the seller is for a certain % commission paid to our brokerage.  Of that amount, we give a certain amount to the buyer's brokerage company for bringing the buyer.  If someone comes without a buyer's agent, our brokerage gets the whole commission.  Now we may have in the listing agreement a note or addendum that if we also represent the buyer (or the buyer is unrepresented) that we do the deal for less.  So rather than say 6%, we may get 5%.  We usually put this in our listing agreements.  Of this, the agent only gets a portion of this depending on their split with their brokerage (anywhere from 50% - 95% depending usually on the agents sales volume - newbies in this business get screwed). 

In essence, you being unrepresented is perfect for the listing agent financially.  Although I'll tell you that as a listing agent, dealing with unrepresented buyers is a pain.  They have no idea what they are doing, particularly with contingencies and anything contractual.  And all the time the listing agent is representing the seller, so you really have nobody looking out for you while the agent puts up a guise of helping both parties when they legally only care about the seller.  And the listing agent ends up doing more work than they usually expect, so while in the end they get paid well, it's a bit exasperating and they end up annoyed.

Get a good agent, in this case I guess your relative if they really know what they are doing. The seller is paying for you to have one.  You can ask your relative for a 1% kickback at closing, but that's so chincy.  If they are good they are worth every penny when it comes to HI negotiation and understanding the laws of your state.

Best of luck!

 

[thecatch]

Understood, thanks for the explanation. No, as mentioned above, I'm leaning towards having a buyers agent. I was just looking for anything outside of what i can Google regarding this transaction.

You can also do something like Redfin where they kick back part of the buyer’s agent’s portion of the commission to you. 

 

[Zegras11]

There really is no such thing as buyer's agent commission.  The agreement is almost always a fix percentage, say 6 percent.  It does not matter if there is a buyer's agent involved, the seller will have to pay the commission of 6%.  Realtors have separate agreements which allow them to split the commission, but that has nothing to do with the agents agreement with the seller. 

All you accomplished by not letting your BIL get a commission is to allow the seller agent to double up. 

That's not true in Idaho.  The Seller agreement clearly spells out what % (usually 3%) goes to the Buyers Agent.

 

[jon_mx]

That's not true in Idaho.  The Seller agreement clearly spells out what % (usually 3%) goes to the Buyers Agent.

That is a good change if they do   Do they also spell out commissions under a dual agency situation?  That would even be a better change over what is common.  Full and open disclosure on how commissions are split under each situation is a good thing for consumers.  

 

[Zegras11]

That is a good change if they do   Do they also spell out commissions under a dual agency situation?  That would even be a better change over what is common.  Full and open disclosure on how commissions are split under each situation is a good thing for consumers.  

no.  Dual agency here applies to anyone in the same brokerage, and then there are a few other subset definitions off of that based on how close the buyers agent is to the listing agent.  (i.e.  I was a Buyers agent my first year on a team and had privy to all the details on team leader listings, thus I had to be super careful what I disclose).