probably,

your contract with the agent probable states that you will pay that agent 3 - 6% of the sell price

and thats OK, you can roll the commission into the loan

Normally I would say never go through an attorney ( at least in Ohio). However, it sounds like you are trying to get out of a contract with a seller and realtor involved. Before getting an attorney talk with the realtor and if you need an attorney get one.

Good morning Jackson,

Agents are not attorneys .. attorneys are attorneys.

Whether you go FSBO or you have 12 agents - it matters not ... always have an attorney in a real estate transaction, they will cover your back before, during and after the closing.



PS: for every "sad story" .. there is 50 great and wonderful success stories out there ... don't let fear or business propaganda steer your future.


: ^)

If you have an acredited Buyers rep. (ABR) signed agreement for representation, yes. You also will be better off paying the ABR 2-3% and have them take care of everything. The work just begins AFTER the property is identified. Check out my website blog for Buyers' Agent info and a free search of homes. http://www.JeanSOLDMyHouse.com

I would suggest going through your agent since your contract with the agent should include a clause that says you will owe the agent a fee either way. Having someone represent you is the best way to go - a homeowner recently called me with a sad story , one that might show you the importance of having a buyer agent or at least a dual agent involved in the transaction, preferably one who is a REALTOR and abides by the Code of Ethics. This poor man overpaid for the home, used the mortgage co recommended by the seller and a closing attorney who had a past relationship with the seller. I estimate he overpaid for the home by at least 15-20% and is now going into foreclosure. The really sad part of it all is that the seller was a relative - clearly not a nice one and took advantage of the buyers inexperience and naivite. There is a lot involved in buying a new home, especially if it is your first home, so let the buyer agent work for you, negotiate on your behalf and do his or her best to uncover any disclosures or material facts about the property that the seller may not share, and you as a consumer ,not working in the real estate field, may not even know enough to ask.

Jackson,

I agree with what Lynnie said, "Not using an agent is like going into court without an attorney". For that reason, if you do not use your agent, you should hire a real estate attorney. Should cost you no more than $1500 to have them draft the offer with whatever contingencies are needed, work on the P&S negotiations and guide you through the process. This is an option if the seller decides that they do not want to pay a buyer commission.

Read your contract the answer is there. Actually you are better off using your agent so you are assured that everything is good, legal etc. An agent actually protects your rights and guides you. Not using an agent is like going into court without an attorney.

Definitely read the terms of the contract. I would be shocked if the agreement had that restrictive of language but it might .... Lesson learned, I guess. In the state in of Massachusetts you don't have to have a written contract with a buyers agent (not sure about sellers) to form an agency relationship. Agents can request a contract and say their firm or they as individual agents require it, which happens, but the state does not require it.
Most FSBOs do offer compensation to agents so if you are happy with your agent you shouldn't have to worry. If the FSBO is not offering that compensation you may have to pay your agent direct/put of pocket .. perhaps you and your agent could make an agreement for a low flat fee if you buy an FSBO that is not offering compensation (?).

Good luck!!

I'm not sure what kind of contract you signed with a Real Estate agent, was it a buyer broker contract or a Sale and Purchase Contract to buy a home that is listed for sale?

Jackson,
Ute is correct if it is an exclusive buyers agreement then you do have to go through the agent and even if you cancelled the agreement it will have a clause that protects the agent to point that usually at least 30 days after the agreement is cancelled the agent is still due a commission if you buy a home. As Ute stated just check the agreement. One other fact I will mention though is that if you let the agent handle the transaction for you they will meet with the seller and make sure they will pay them their commission, they will be doing all the paperwork to make sure you are covered and everything is legal and above board, and while there has been some discussion on this in the past they will negotiate for you. I know that my personal record with FSBO's is pretty good. The last one I handled after we finished the buyer with all the concessions and price reductions he came out 8% lower and leaving behind alot of personal property that he had not planned on.

So have fun and good luck,

Larry Story
Coldwell Banker Triad

Hi Jackson. It really depends on what kind of an agreement you signed with the agent. If you signed an exclusive buyer broker agreement, you'll most likely have to. You have to read the terms of your agreement very careful. The good news is that many FSBOs will be willing to pay a commission to the agent who brings them a buyer. Good luck.