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.

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.

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

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!!

Dan,

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.

Francesca

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

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

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

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

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.

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!

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

JSacktig@orangekeyrealty.com

Dan,
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?
Jackie

No reason to lose 3%. It is eay to fnd a place you like and make an offer.

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.