Home Buying in 08824>Question Details

Dan, Home Buyer in New York

Can someone send me the details on how to buy a home without hiring a buyers agent? a format of offer letter

Asked by Dan, New York Sun Mar 15, 2009

would be great. I have come to belive that I am unnecessarily spending an additional 3% in this bad market.

Help the community by answering this question:


The question was asked 3 years ago people!
1 vote Thank Flag Link Tue Mar 20, 2012
How do you even know it's 3%?

Dan, if you don't have an agent on the buying side, either the entire commission will go to the listing agent, or the seller will want to save the same 3% for themselves that you want to save.
1 vote Thank Flag Link Mon Mar 16, 2009
Hi Dan, here in NJ the seller pays both the listing agent and buyers agent, so please first be sure that you aren't trying to avoid a fee that you will not incur in any case. My recommendation is to find yourself a good agent - he/she will earn their fee and then some in negotiating the best price for you and navigating your transaction from offer to close. It is a tough and rugged market - all the more reason that you need the services of a top agent. Find one you trust and can relate to - you need his/her knowledge of the market, pricing, and the process on your side in order to succeed. The best agent for you may not be the one with the most years incidentally - so follow your best instincts and find a good one.

If in fact you are paying the commission, remember that commission is negotiable. If the commission is being paid by the seller, then that commission was negotiated at the time the listing was taken. If you are paying, then negotiate that rate when you strike a deal with your agent.

These are not waters to navigate alone - you need a good agent and a good real estate attorney.

Good luck to you!
Jeannie Feenick
Search and connect at http://www.feenick.com
Web Reference: http://www.feenick.com
1 vote Thank Flag Link Mon Mar 16, 2009
Hi Dan,

Can not say it any better then Mr. Faranda did below.

A listing that is taken at 6% is a contact between the seller and the listing agency. You do not pay a commission on the house and the contract and commission has been determined and this is not a negotiation that you are a part of.

Call me / Email to discuss further.

John Sacktig
Broker / Manager
Orange Key Realty
Office: 732-863-6969
Cell: 732-213-1409

1 vote Thank Flag Link Sun Mar 15, 2009
The problem is yiou are not spending or saving anything by having or not having an agent represent you. The seller hires the listing agent for x percentage. the listing agent then offers Y percentage usually half of what they receive for listing teh home. If there is no buyer agent they get the whole commission as they have to complete the job if the buyer agent and the job of the listing agent. You as teh buyer lose out on the expertise of an agent and have not saved a penny. A good buyer agent should help youin negotiatons and save you money. not cost you money
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue Mar 20, 2012
The word is CHUTSPHA (hope I didn't misspell it)
You want us to help you do without us.
Why don't you just do without us on this too.
0 votes Thank Flag Link Tue Mar 20, 2012
If the property is listed through or with an agency, the seller has already agreed to pay them a commission so you will be saving nothing. If not, here is what should be included in a letter of intent

Name & Address of the buyer
Name & Address of the seller

Property Address

The sales price
Your 1st deposit amount
Your second deposit amount
Your mortgage amount
What type of mortgage you have applied for FHA/VA or conventional
How much money you will be bringing to closing.
Date of Closing
What you want included in the sale
And make sure to include your pre qualification letter with your offer.

If the seller accepts you can have an attorney draw up the formal contract, which will most likely cost you more then if you had sent him a contract that has been drawn up and executed by both parties already.

Good Luck
Dawn Marie White
Broker-Sales Professional Office Manager
Crossroads Realty Inc
800-677-4033 Office
732-581-9414 Cell
Web Reference: http://www.njwaterfront.com
0 votes Thank Flag Link Tue Mar 20, 2012
I have to answer your question with a question........... If the seller pays the buyers agent, Why woud you not want the representation to negotiate for you?
0 votes Thank Flag Link Tue Mar 20, 2012
Do you know what a buyer' agent is ?
Do you know who pays the commission on the sale of a house?

A buyer's agent is taking care of the buyer who is looking to purchase on house .When the time comes to submit your offer to the seller the agent will disclose that they work for the buyer.
The sellers agent will do the same for the seller.The commission is paid out of the sellers closing costs .
Agents that represent a buyer and seller on the same property are called dual agents.
Good luck,
0 votes Thank Flag Link Tue Mar 20, 2012
Sellers pay commission so why do you think you are paying an additional 3%. YOu do not pay the real estate agent anything. Your agent will get paid from sellers proceeds ONLY when the house formally closes.

Not to mentuon that if a home is listed with an agent/agency you will HAVE to be shown the property by a licensed Real Estate agent (there is an exception, it's a special type of listing agreement but I doubt that this is the case here, since it's rarely used).

Having an agent on your side is worth his/her weight in gold to help you through the process, be a problem solver, and act as go between between you and the sellers agent or sellers. There's a lot involved in buying a home, and in this "bad market" there's a lot more that can go wrong along the way than ever before. Having an agent who knows the process will save you many, many headaches along the way.
0 votes Thank Flag Link Tue Mar 20, 2012
You can hire an attorney to prepare an offer, though personally I think you're making a huge mistake. Buyers who buy on their own statistically overpay between 2-6%. On top of this if the Seller is represented you can bet money you'll be out negotiated as you don't have the familiarity with the contracts that the listing agent does. Finally you aren't entitled to a commission and whenever I have someone like you ask if I'll cut the commission if they don't use a buyer broker the answer is a resounding NO. The truth is the listing agent will end up doing the work the buyer broker does, if they want to make certain the deal closes.

Do you know qualified home inspectors, how do you judge them? How about financing options? Contractors? Lawyers? Surveyors, appraisers, etc?

Do yourself a huge favor, don't believe everything you think and get yourself an experienced buyer broker, in the long run you'll save money and have a much more successful transaction.

Don't know how to find a good buyer broker check out the link below.
0 votes Thank Flag Link Fri Mar 16, 2012
Not sure why you would want to buy without a professional. Please contact me to discuss. Thanks.

Karen R. Brown
0 votes Thank Flag Link Fri Mar 16, 2012
Dear Dan,

Not sure what you mean by saving 3% by not hiring a buyer's agent....


Charan Bajwa
(Broker/Owner) RE/MAX ONE
“Providers Of TRUE Value Real Estate Services”
4260 US 1 North, Suite 3,
Monmouth Junction (South Brunswick Twp), NJ 08852
(Between Ridge Rd and Raymond Rd)
Off: (732) 438-0001 Fax: (732) 438-0007
0 votes Thank Flag Link Wed Jun 30, 2010
First of all get pre qualified for a mortgage. Then talk to a good Real estate attorney in your state. If the house is listed with the agent, there is no guarantee, that the agent will reduce the commission as you are not using an agent. Before you look at the home, ask the agent. As the agent represents the seller do not give any information that may hurt you in the negotiation. make sure you are aware of real estate laws in your state.
Web Reference: http://www.gitabantwal.com
0 votes Thank Flag Link Mon Mar 16, 2009
Here's my non-real estate agent answer:- there are things people are good at and things some folks simply can't do. If you are a really good negotiator and have a depth of knowledge of real estate transactions, then go ahead on your own. Do some research on contracts online and represent yourself.

However, if you are like most people, you have a set of skills and a lifetime of experience in a variety of things, not specifically real estate. How are you when buying a car? Do you get the best deal? Do you do all of the research to make sure that you know ALL the facts - like how much is their cost in, how many cars do they have to move to make their expenses, what is the relative value of this vehicle compared to others in the price range?

I think - and I am NOT a realtor, though I have been, I'm actually a home stager and real estate marketer - I think that a professional realtor is worth paying to represent you in a deal. The right realtor, with experience, market knowledge and serious negotiating skills.

A close family member holds a real estate license to help with his real estate investment business. I did not use him to sell my house. I am spending an additional 4% to be represented by the very best realtor I could find, and I thank God every day that I did! I am the only person in my town with a deal in my price bracket... for the last 3 months!!
0 votes Thank Flag Link Sun Mar 15, 2009

Economics 101 . . . "there is no such thing as free lunch."

If the property with which you desire to purchase is listed with an agent, yet you continue to feel as if making an offer without a buyer's agent will bring you savings, contact an attorney direct as here in North Jersey the use of attorneys is recommended (but not required). Understand, however, that this attorney will typically charge you more for acting as a Realtor and as an attorney. Also understand, that an executed contract is only the beginning and that you will then take on the plethora of responsibilities to ensure the transcation actually closes. Time is money . . . if you have all the free time it takes to get to the closing table, then I say go for it, if not, use the services of a Realtor.

If you are working with a for sale by owner again contact an attorney for assistance. But, again, time is money and what you save in actual $$$, may cost you in time.

Web Reference: http://www.PatrizioRE.com
0 votes Thank Flag Link Sun Mar 15, 2009
Quoting Denise: "It is in your best interest to work with a Buyer Agent this will be at no cost to you the Buyer as the commission the buyer agent will receive will be paid through the sellers proceeds."

This is a common misconception, even among Realtors. Buyers do in fact pay for buyer agency. It is built into the price of the real estate. Just because the buyer doesn't write a separate check for the commission does not mean they are not paying. They are. When a seller prices his house, he factors in the full commission, including the portion that goes to the buyer's agency.

That is why it is important that buyers demand a high level of service from their buyer's agent. In many respects, a buyer needs a higher degree of competence and performance from his buyer's agent, than a seller does from his listing agent.


Marc Paolella
Relocation Director
Member, Worldwide ERC
Licensed Realtor NJ
Licensed Appraiser NJ & NY
Century 21 Joe Tekula Realtors
Agent of the Year 2008
Owner: Sands Appraisal Service, Inc.
Phone (direct): (973) 584-4235
web: http://www.marcpaolella.com
0 votes Thank Flag Link Sun Mar 15, 2009
Hi Dan,

If you buying a FSBO, then your offer should be at least 3% below prevailing market to realize the savings. Preferrably 5-6%. If you are buying a property in the MLS, you will not get that 3%, the listing agent will simply keep the whole commission, unless you can get the listing agent to cut their commission to "make the deal". Most will not. However, if you get a desperate agent, they might.

You should also be very good at pricing real estate to save money without an agent. Some buyers have the background and ability to do this, but most do not. If you do, good for you, then go for it.

Good luck!


Marc Paolella
Relocation Director
Member, Worldwide ERC
Licensed Realtor NJ
Licensed Appraiser NJ & NY
Century 21 Joe Tekula Realtors
Agent of the Year 2008
Owner: Sands Appraisal Service, Inc.
Phone (direct): (973) 584-4235
web: http://www.marcpaolella.com
0 votes Thank Flag Link Sun Mar 15, 2009
It is in your best interest to work with a Buyer Agent this will be at no cost to you the Buyer as the commission the buyer agent will receive will be paid through the sellers proceeds.
0 votes Thank Flag Link Sun Mar 15, 2009
Hello, Dan!
How are you doing?
You've got several good answers.
I'd like to give you some info, too.
In NJ you don't have to pay to the buyer agent.
You should pay only there is a contract between you and your Realtor, where it says for how long you work with him/her, in what areas, and how you are going to compensate your Realtor (this is very much negotiable), but YOUR REALTOR MUS PUT THIS IN YOUR OFFER, SO A SELLER'S BROKER AND A SELLER ARE AWARE OF THAT, AND MAY KEEP BUYERS AGENT PART OF COMMISSIONS.
Usually, buyer’s agents work with their clients on hand shake, and get paid at closing (usually a half of total commissions paid by the seller).
Some buyers think, that if they buy without buyer’s agent they may save money. This is a common mistake. This works only if you are dealing with a seller direct, with a seller without Realtor’s representation.
If a broker represents a seller and you are entering into transaction, a seller’s broker becomes a dual agent and represents you as well (with your written acknowledgment), and he/she will get full commissions without splitting it with buyer’s broker.
So, find a Realtor, who you can trust, and good luck!
0 votes Thank Flag Link Sun Mar 15, 2009
The previous answer that you received is correct. You are not paying your realtor - they are collecting their commission from the seller. Why wouldn't you take advantage of an expert on your side?
0 votes Thank Flag Link Sun Mar 15, 2009
No reason to lose 3%. It is eay to fnd a place you like and make an offer.
0 votes Thank Flag Link Sun Mar 15, 2009
The notion that you are spending an additional 3% if you use a buyer agent is inaccurate. The listing agent already has a contractual commission arrangement with the seller, and they will not cut it in almost all cases just to make the deal work for you. Moreover, you are not represented in the largest transaction of your life. A good buyer agent will save you more than 3%.

That said, to submit and offer simply cal the listing agent. They'll forulate it for you. Good luck, you'll need it without representation.
0 votes Thank Flag Link Sun Mar 15, 2009
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