(Closed) Skipping a buyer's agent?

posted 6 years ago in Home
Post # 3
Member
3108 posts
Sugar bee
  • Wedding: May 2018

how good are your negotiating skills? Do you know all the laws and ins and outs? What to expect in terms of costs? I am just tying up the process and could not have done it without my agent’s help. Differently tho- this is my first place so I was confused the whole time!

Post # 5
Member
7311 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

In my area the buyer does not pay the buyer’s agent. That comission comes from the seller’s profit. If you purchase without a buyer’s agent, then the seller’s agent just keeps the entire 5-7% that was negotiated upfront with the seller as the agent’s fee. You don’t actually get that money yourself for skipping the buyer’s agent. So why wouldn’t you have one?

Check out Redfin if it is in your area. I think their agents will give you back a portion of the buyer’s agent fee as cash after the deal closes.

Post # 6
Member
9202 posts
Buzzing Beekeeper
  • Wedding: August 2013 - Rocky Mountains USA

We tried to skip a buyer’s agent and none of the realtors in our area had any idea what we were talking about, and basically refused to sell a house to us without a buyer’s agent.  They all said they’d either keep the whole 6% or split it with a buyer’s agent, so the buyer’s agent wouldn’t cost us anything.  In the end we just went with a realtor as it seemed like too much of a hassle to try to avoid it…  When selling a house, I’d definitely skip a seller’s agent if the real estate market looks somewhat promising for a quick sale.

Post # 7
Member
9202 posts
Buzzing Beekeeper
  • Wedding: August 2013 - Rocky Mountains USA

@lovekiss:  Sometimes people try to negotiate that the 3% that the sellers would have paid to the buyer’s agent gets reduced from the price of the house instead.  The buyers save 3% and it costs the sellers the same.

Post # 9
Member
7311 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

@lolot:  Maybe it’s a regional thing, because that’s definitely not how it works here. Our REA is a long time friend, and her contract when she is the selling agent is structured so that she keeps the entire negotiated amount if there is no buyer’s agent. From what I know of REAs here, that’s standard because the seller’s REA often ends up doing a lot more work to keep the deal alive and moving forward when the buyer is clueless and screwing things up because they don’t know any better.

(Note: Not saying that the OP would be clueless, just that many who try to operate without a buier’s agent end up being more hassle and work for a selling agent than those who do have a buyer’s agent.)

Post # 10
Member
864 posts
Busy bee

The seller pays the Realtor fees not the buyer. You could theoretically negotiate a lower rate for selling your condo if you agree to buy from the same agant. However, since the realtors split the sellers’ fee if you negotiate too low – less than 4%,your realtor may have a difficult time getting showings. In Mass, I would definitely recommend using a realtor. I personally bought and sold two houses in Mass and the laws can be odd -titling, historical districts, conservation areas, etc.  we had a few offers on our house and opted for the buyer with the realtor because we didn’t want to deal with the buyers directly. We have bought and sold 5 different houses in two states (thank god for corporate relocation packages!!) and have pretty much seen it all. We won’t attend the closing in person, send our lawyer and realtor because I can’t stand the ridiculous back and forth after inspections. After the purchase and sale are final, we gave our realtor a window to negotiate in (+/- $10k) and asked her get get the deal done. These were all less than 2 year old, custom built homes. Really, you want a $50 credit for a ding on the interior chair rail? Do you realize the taxes on this house are $17k a year? Punting that knit picky bs is the benefit of having the realtor! Best wishes!

Post # 12
Member
213 posts
Helper bee
  • Wedding: October 2012

I can understand not having a seller’s agent to save some money, but I think it’d make it less stressful for you to get a buyer’s agent. I didn’t use one for my first house and didn’t have any problems, but we’re using one currently to buy a new house. Like the other people have said, that gets paid for by the seller and no matter if you have one or not the commission is negotiated at a set percentage when they list the house.

Our agent didn’t really help us find a house, but she did take us to show the ones I found. She also found comparables and advised us on how much to offer and did well at negotiation. She could get information that we couldn’t get for some of the properties, like pulling old sales and such.

If you are looking for information, I’d suggest looking at redfin.com. They seem to have the most up-to-date information.

Post # 13
Member
13099 posts
Honey Beekeeper
  • Wedding: July 2010

I agree with lovekiss.  From my experience, if you don’t use a buyer’s agent, the seller’s agent just gets the whole fee (instead of splitting it like normal).  This is written into their contracts.  So there is nothing but a benefit to you in using a buyer’s agent.

Post # 14
Member
2893 posts
Sugar bee

@lovekiss:  I had the same experience when we were buying. The seller’s agent splits the commission with the buyer’s agent so having an agent when you’re purchasing a home really costs you nothing so there isn’t really a reason NOT to have one. From what I understood it was the same way in other places as well but now I’m starting to wonder if it’s a Maryland thing. 

Post # 15
Member
864 posts
Busy bee

@kay01:  The lawyer was largely unaware of the town laws. He was just at closing to ensure that the legal documents were valid, etc.  It was our realtor who knew that the land wcations conservation area and got us the rules for it.  I love historical zones, that’s why we paid a premium to buy into the town we did but lets face it, our lawyer was from Boston and had never even stepped foot in our town before. Our neighbor ignored the conservation rules, figuring who would kNow? Let me tell you that iT costs about $25k per tree to replace “similar growth” trees that you illegally cut down. Apparently the town had Conservation Police.  No joke. Our realtor also steered us away from a beautiful neighborhood because she had heard that the builder messed up the installation of the slate roofs. There was a rule in the neighborhood association laws that all homes had to have slate roofs as they were built. Slate roofs  typically last 50 years. Because some of the builders had never installed a slate roof before, they did so incorrectly which resulted in half of the homes having to replace their roofs in 2 years at a cost of $75k each.  Ouch. I think that’s what a buyers’ realtor gets you, expertise about the area. 

Post # 16
Member
305 posts
Helper bee

Not having a buyers agent when it is free to you as the buyer?  Bad idea.  Bad bad idea. 

The topic ‘Skipping a buyer's agent?’ is closed to new replies.

Find Amazing Vendors