“I Want To Buy A House and Save 3%”
I just met a buyer to show him two of our listings. After I returned his call, he asked if I was the listing agent….and I explained that our Team represented the Seller.
When I met him, he told me he ONLY works with listing agents to save the 3% commission. His thinking was that if the total commission is 6% (3% to the listing agent, and 3% to another buyer’s agent), he would work only with the seller’s agent and save the 3%.
I’ve come across this line of thinking before, and that’s not how it works, folks- for one important reason.
The listing agent and the seller (who pays this commission) have a CONTRACT- a Listing Agreement- where the agreed-to commission has been ‘agreed to’ and signed. This is a legal document.
The buyer’s thinking that he can manipulate or affect the commission paid is wrong. That commission percentage has been pre-determined.
What he’s really saying is “hey, Listing Agent, if I come to you direct I think you should work for less- and in most cases, I want you to do all the work for ME at that reduced price.”
EVEN if that buyer wants to write his own contract and present it (and in most cases, he wants the Listing Agent to write and present it), he’s going to have questions about the purchase process, the closing, etc…. and of COURSE, he expects the Listing Agent to help with these.
THEN comes the question…. who is the Listing Agent representing? If the Listing Agent represents ONLY the seller, she can’t assist that buyer if it’s not in the seller’s interest. If it has been agreed that the Listing Agent is representing BOTH the seller and buyer, then it’s a situation called “Dual Agency” and both parties have to be represented EQUALLY. But all that is secondary…. because the buyer wants the Listing Agent to do it for only 3%. THAT’S because HE wants to ’save money.’
Back to the original point……. if the Listing Agent and the seller have agreed to a commission of 6%, the seller will still pay 6%. Whatever was agreed to will be paid.
The BUYER will not affect the commission paid.
That’s not how it works…… and these are the very REAL challenges for this buyer:
1. He’s going to have a tough time getting the home he wants. If he keeps on offering a ‘fair market value’ and deducting 3%, there’s no sane incentive for the seller to agree… and they won’t come to an agreement.
2. There is no one looking out for and representing the buyer’s interests. Buying real estate can be complicated and convoluted… and no one is looking out for this guy’s back.
3. By refusing to establish any relationship with a Realtor who IS looking out for this guy’s interests, there’s no incentive to ‘help him out.’ For example, as a Buyer Agent I know of good properties that are coming on the market, but not quite ready. I have no incentive to share these… or set up an ongoing advanced search via computer…. or call when I hear of a great price reduction on an existing listing.
OK… that’s my rant and I’m sticking to it…..
February 16th, 2007 Columbus Buyer Info, From Professional to Personal, It's My Opinion
I am a buyer ,If I found the house the agent should not get 6% for letting me into the home. I don’t think so.
I’m not big on agents you can’t ask them a question with out them asking you in retunn do you have a agent. When you meet with
a agent they are quick to pull out a piece of paper and ask you to sign it. Again I don’t think so, that piece of paper better come with
a home warranty if not i’m not signing. They all pull there houses from the same place the MLS what makes one agent different from any other agent? Nothing.
Your not doing anything but you want me to sign a piece of paper If you want my Jhon handcock go out and find me some for sale by owners now that is worth 6%
And yes i do know that the buyer don’t pay the agents commission but the word Commission needs to be reevaulated and sent out to all agents. And while we are at it lets look up the meaning of Agent. They don’t do half the work they should and they are lazy.
“They don’t do half the work they should and they are lazy”……Wow, It sounds like you have had a bad experience with a real estate agent. There are good, competent, hard-working realtors out there, and there are also the realtors that put in as little time as possible and take every shortcut in the book. Of course, you’re going to find THAT in any profession- it’s human nature.
I’d suggest you search for one of the GOOD guys (or gals) when you’re ready to buy your next home… I think you’d be amazed at what a difference it makes.