You want to save money? do it the right way to begin with and you will save a fortune and a friendship.
On another note, the buyer ALWAYS "pays for" the commission. It may come out of the seller's proceeds but that seller had a bottom line of what they would net AFTER fees and commission. So the Buyer is just financing that commission.
The others who wrote here are right. This is too big an investment not to get (and pay for) the expert advice of both an Agent and a good Real Estate Attorney., Your friends might get away with this but then again... they might pay dearly for trying to save a buck.
That is misleading statement to say that the seller could lower the price by 2.5%. In that scenario the listing agent would simply get paid the full commission instead of splitting it with a buyer's broker. The seller pays the full commission either way. Great deal for the listing broker but not the buyer!
So the alternative for buyers like this is to get their own agent, pay them hourly, and have that agent rebate the entire commission to them. They pay for exactly what they get. We offer that to people so you can have them call me at 312-738-0232.
Using a friend??? Very bad idea. Reminds me of a movie with a lawyer named Vinnie.
Nick Radakovich Home Sales Realty
I am not sure saves a buyer money. You should now that broker typically will change from 6% to 5%. The reason is so they can offer the cooperative broker between 2.5% and 3%. If your friends go directly to the selling agent the selling agent will simply collect the entire 5% to 6% and will fall under dual agency. Remember the saying the cheap can end up expensive.
1. I recommend a buyers broker not associated with the property.
2. They need to have a good real estate attorney.
Would you trust in your friend to do surgery to you ? or you will hire a doctor ?
They are not going to save ! they will be ending losing a lot ....the listing agents love it when people came without realtors ....and the listing agent will take 2X commision plus NO representation
Broker Baird & Warner
it is foolish at the least and definitely almost always a costly mistake.