Buyers agent needed for found foreclosure property?

Question

We found a FORECLOSURE property in which we're interested. I've read that the seller pays the full 6% commission to the seller's agent & that the seller's agent then splits the commission with the buyer's agent. When we bought our current house, we had to negotiate for the seller to pay it. Perhaps that was because it was a FSBO? If you go it alon without a buyer's agent is it ever possible to get that 3% attributable to the buyer's agent as a "discount" on the home price?

I don't mean to sound callous, but if we did go with a buyer's agent, it doesn't seem fair that they would get a full 3% when we did the work to find the house. Plus, my husband & I are CPAs & understand finances & are good at negotiating. I realize the agent still has to work to close the deal, but is there anyway to get some of that 3% to go into our pocket?

I also read that a true buyer's agent will not sell a property. Is that true? If so, do I need to get a separate agent to sell our current house?

Answer 1

You don't need a "buyer's agent" whose only function will be to demand a part of the commission thereby making it less negotiable. What you need is a lawyer who will charge a fixed fee and represent all your interests to prepare your offer.

Answer 2

You won't get any sort of discount for going it alone. The listing real estate brokerage has a contract with the seller for a specific percentage of the sales price as commission, and will keep the entire amount for itself if you go on your own.

As far as not wanting to pay a buyer's agent the full fee due, finding the property is the LEAST of the work involved on the buyer agent's part. Until YOU have sat in the shoes of an agent trying to put together a deal with a lender on a foreclosed property, you have NO idea what that person goes through in terms of work.

It is not true that 'a true buyer agent' will not sell properties. There ARE buyer agents who specialize ONLY in working the purchasing end, but that makes them no more of a buyer agent than is the agent who switches hats according to the needs of the client to whom he/she is contracted.

I happen to be a certified 'buyer's representative', and I can wear either hat equally well.

Answer 3

If you haven't hired the agent yet, then everything is negotiable. Ask around at various realtors, I'm sure you'll find someone who is willing to compromise part of their potential commission for the chance to help you get this house. After all, you have done a lot of the work already; it's mostly just paperwork now.
You have the upper hand, since you dont yet have an agent, and you know what you want. Call around; can't hurt to ask.

As for what you will actually get out of that, it's hard to say; but you can likely make a lower offer with the understanding that they have less to pay out to your agent.

Answer 4

if you found a listing, do not have an agent working on it, and you would like to approach the listing agent to make an offer no problem

first only make an offer on this house, do not ask or look at other properties or you could be bound to the agent on commission,

on the offer if the agent says it seems low, then suggest since the listing agent is going to get 6% that maybe the agent should take 1 to 2 % off

Answer 5

First of all; NO, you will not get a 3% reduction in price because you failed to have an agent represent you; the commision will either be reduced to the seller with them keeping an extra 1 or 2% or the selling agent will just split the 6% fee with their broker/boss and the split depends on the contract that realtor has with that broker.
You CAN try to get seller to reduce the purchase price by 2% because of the POSSIBLE reduction that they MIGHT get but that is NOT good negotiating.
You need to quit worrying about what the seller gets or what the agent gets and look at what YOU get. Base your offer; NOT on what the agent splits but rather on the price that makes sense for you to INVEST money in that property.
My last "foreclosure" sold Feb. 2006 for 300K, bank repo'ed for 255K, and I bought it for $169,900.00 and was NOT worried at all about how that 170K was split or where it went to.
And for any zillow fans out there; I will sell that property TODAY for zillow's zestimate of 287K.