I found a home myself. Seller's realtor showed me the house. We like it and we want to put in an offer. Should I get a realtor now ? Seller's realtor claims that I get a 1% off coz I don't have a realtor. Can I trust him or should I make sure that I get that 1% off before i put in my offer. I'm not sure if i should take the risk and let him get away with a fat commission. What are your thoughts ?
2007-05-21 14:04:45 · 8 answers · asked by Bike Lover 1 in Business & Finance ➔ Renting & Real Estate
This is a very interesting question!
Depending on where you are located (which state law you fall under) agency laws differ. However you have the right to use whomever you want to represent you in the purchase. Contrary to what others have written, because of Buyers Agency laws the fact that the listing agent (sellers agent) showed you the house they are probably NOT entitled to the full commission. And you certainly wouldn’t have to pay a buyers broker commission UNLESS you agree to in writing.
Next part to the question, how competent do you feel to stand up for yourself? Do you drive a Saturn (so you didn’t have to negotiate to buy your car)? Then I’d get another agent to help you out. If you can go to an auction, set some limits on yourself – hold your own in a Mexican farmers market, enjoy the negotiation process then you may not need to involve another agent. You have to answer that question honestly. If your answer is that you are going to try to do this yourself read on.
You would save the 1% because the listing agent doesn’t have to split the commission, add to that the seller may feel the same as you do and expect a lower commission. This may lower the price they would be willing to accept.
You can ask the sellers agent to represent you also. This is called disclosed dual agency and is legal in most states. As a dual agent they would owe you the same fiduciary duties as the seller. If the agent agrees to dual agency you then can ask the agent for the information like a CMA (competitive market analysis) and advice. This will help you formulate your offer. But you have to make up your own mind as to how much your are going to start your offer at.
Keep in mind the seller wants to sell, you want to buy and the agent wants to get you two together. Now just dive in (after you have done your research) go and get it done.
As for the 1% discount (probably coming from the listing agent, rather than the seller). You could get it in writing before making an offer, or just include it in and make it part of the offer.
2007-05-21 16:49:56 · answer #1 · answered by GaryODS 3 · 0⤊ 1⤋
You have an ugly issue here. Since you looked at the home with the seller's realtor, that realtor is entitled to the entire commission generated by the seller. Of course, that's why he is discounting the fee by 1%. If you get your own realtor now, you will be expected to pay for the services of your realtor under a buyer agency agreement, and the seller's realtor will still get the full commission from the listing agreement.
Contact a qualified real estate agent who holds an ABR designation and explain the situation you are in. They will guide you accordingly.
2007-05-21 21:12:51 · answer #2 · answered by acermill 7 · 1⤊ 1⤋
Did you sign an agreement to use the realtor to find your home? If no, you can get a realtor to represent you. It does not save you any money. It saves the seller commission costs. If you do not get your own realtor, my sure you have the property inspected and the seller pays for all maintenance needed.
2007-05-21 22:09:27 · answer #3 · answered by Nada 2 · 0⤊ 1⤋
get your own Realtor to give you the 1% back....i'm thinking that you could find a very good one who would be happy with 2%, and would represent your interest. Beware that some states make such a kickback an illegal deal.....but there's ways to adjust the price for the difference....just make the total 5%, and offer 1% less. By the way, Realtor has a capital "R".
2007-05-21 22:09:42 · answer #4 · answered by ? 3 · 0⤊ 1⤋
Get a realtor! The seller's realtor does not have your best interest in mind, it only has the seller's best interest in mind. Getting a realtor will not cost you a dime. The seller pays for theirs and yours. You won't get the 1%, but it will be worth it to have someone on your side.
2007-05-21 21:44:00 · answer #5 · answered by E W 1 · 0⤊ 1⤋
It depends on how the contract with the Realtor is written, in some contracts no matter who sell the house, even the owner the Realtor has to be paid his commission. This is business and to cover the expense of any monies laid out as to advertising etc.
2007-05-21 21:21:39 · answer #6 · answered by John P 6 · 0⤊ 1⤋
You will not be represented the seller will be. A realtor representing your interests will most likely be worth that 1%.
2007-05-21 21:09:10 · answer #7 · answered by Anonymous · 0⤊ 1⤋
"Acermill" is correct. Because you chose to approach the seller without representation ( Buyer agent), the seller's agent is entitled to all of the commission. You are now on your own, unless you want to hire an attorney to protect your interest in this deal.
2007-05-21 22:12:00 · answer #8 · answered by Hoopfan 6 · 0⤊ 1⤋