Let's see, I sign a contract with my client the Seller and I charge them a fee to sell their house. Then I turn around and cut a deal with a Buyer to give them a portion of the money that I just charged my client. I am very sure my client will be thrilled to hear I just ripped them off. My integrity is called into question as well as the potential for a complaint of misrepresenting my Seller.

I cannot think of a better way to boost my career by portraying myself as the agent that will do anything for a buck.

Do not listen to these agents telling you its not possible. They are only looking out for themselves and their company they work for which they will say that there company will not authorize that. It's your responsibility to watch over your checkbook. It is there responsibility to watch over theirs and trust me they do that very well. I have bought and sold 5 homes in the last 10 years. I still own 2 and looking for my 3rd one.

Educate your self ask people you know who have bought homes recently about there experiences if you cant trust your friends advice what would make you trust a strangers? In fact my current agent has a back door deal that if we buy a house through the agent in the area we are looking at buying they will get a 25% kickback.

Another thing i have learned through buying homes is get your own inspectors. Find the best inspection team you can these are the people who can really save you some money in the deal as what they find could cost hundreds if not thousands of dollars. I learned this the hard way. I trusted the my agent to be looking out for me only to have them recommend poor inspectors which ended up costing me $200 the first time and $2500 the second and i guarantee you the last time.

Just ask yourself who cares more about your check book your agent or yourself? Then ask yourself what does your agent have at stake after you sign the loan papers. The only thing they have to loose is your future business. I guarantee you they will not loose any money if you have to do any repairs after the sale is final!

Bcjunker - on the surface it might seem like a great idea to get the listing agent to "split" the commission with you............however, .don't count on it.

The seller already agreed to pay a commission - the listing agent agreed to share it with a co-broker. if there isn't any co-broker - they most likely will retain the entire commission.
They have no obligation to give any part of it to you.

I suugest it's in your best interest to find a buyer's agent to represent you.
The seller will be represented........you should be, too.

If you insist on representing yourself - don't automatically assume you will be saving any money.

Just as an aside - if the listing agent already showed you the home - they may consider that they are the procuring cause. In that case, they are a dual agent - if it is allowed where you are, I hope that was explained to you.

Good luck!

Some buyers agents will discount their fees if you keep the number of houses you visit to a minimum. If a house is not being sold through a listing agent, then you can deal directly with the seller avoiding the commissions. You should in that case, get a real estate attorney to help you write the offer to avoid gotchas. There are some standard forms available for making an offer.

The commission has nothing to do with representation. That amount is between the seller and the agent or agents.
In Texas the listing agent most likely would be an intermediary which is a neutral position when offering advice and opinions about price etc. However they can show you the comps and are of course obligated to treat all parties fairly. You may also find another agent but that should have been done prior to getting the listing agent to show it to you.
Again the commission has nothing to do with representation therefore it is unlikely a commission would be paid to you. The agent is handling both sides of the transaction therefore deserves both sides of the commission.

The buyer's agent would be paid by a commission split from the listing agent and the buyer's agent would represent you. The amount of commission would most likely be the same and the commission is paid by the seller. If you go direct to the listing agent, you have to realize that the listing agent doesn't represent you, they represent the seller.

In my opinion, most of this is self-serving advice from realtors. Everything is negotiable. If you have the ability to physically scout locations and select suitable buying prospects, all you now need is a web source such as Truilia (for comp and other data) and a real estate attorney. I bought my first house this way. The realtor reduced his commission by half; I arranged for inspections and I paid the attorney to do the necessary paperwork. I saved thousands.

The fact is, realtors are going the way of travel agents; they are terrified by the empowerment that new online tools offer buyers. In my most recent case, Truilia had more up-to-date data than the MLS system. You really need to check out what Truilia has to offer.

The Buyers Agent is paid for by the Seller. So please get help. The "fee" is established when the Seller lists the property with the Listing Agent. so if you have no Buyers Agent the Listing agent gets it all,(Read zero savings to you!). The Listing agent represents the Sellers best interests (Read- Getting the most money possible). There is no reason for you not to have help to buy this home. Your Realtor can provide comps so you know what the price should be, not just what they are asking. You would not act as your own lawyer or install your own dental work, why would you try to do something your not tained to do? Please get help to make this purchase.

YES! You will not "save" a penny by not having your own agent. The Buyers Agent is paid for by the Seller. So please get help. The "fee" is established when the Seller lists the property with the Listing Agent. If you have no Buyers Agent the Listing agent gets it all,(Read zero savings to you!). The Listing agent represents the Sellers best interests (Read- Getting the most money possible). There is no reason for you not to have help to buy this home. Your Realtor can provide comps so you know what the price should be, not just what they are asking. I wish you the best of luck and seriously hope you get some help on this deal. Good luck!

Not trying to insult your intelligence, but why would you risk messing up the most expensive purchase of your life? Since the property is listed with an agent, the seller has signed a contract to pay a total commission amount. That amount will not change just because you don't have an agent. What would have gone to your agent will most likely go to that broker.

If I were the listing agent I would not negotiate a reduction because I'd wind up doing the work for both sides anyway!

Great answers and sound advice. What you will save through the guidance and negotiating prowess of a skilled agent will exceed any adjustment you may realize by avoiding commission. When the pros are cut out of the equation by either buyer or seller, it is far less likely that a fair market value will be established - agents have access to a treasure trove of information and you want to work with agent that has strong inventory knowledge, a command of the available data and the analytic skills to use that info to your benefit.

If you want to negotiate a good deal and have the highest likelihood of advancing to a successful close, align yourself with the best resources you can find.

Good luck and best,
Jeanne Feenick
Unwavering Commitment to Service

The key is experience in negotiations. As a consumer not in the real estate business, you really have to ask yourself whether you have the background and experience to effectively negotiate on your own behalf.

Of course even if you have the background and experience, do you have the necessary detailed sales data and ability to interpret that data? These may sound like simple things, but experience matters. It's not what you don't know, it's what you don't know you don't know. Think about it.

Finally, there's a saying that lawyers are fond of, "A lawyer that represents himself has a fool for a client."

I totally agree with all of the answers on here. To a certain degree, it's like going to the hospital for surgery and telling the surgeon that you'll administer your own anesthesia to avoid having to pay for an anethesialogist. Let the professionals do what they do best, negotiate the best deal for you!

Bcjunker I am curious on what you decided to do on your home purchase. You received some pretty solid answers from Joesph and Debbie and the others. I usually see individuals two or three times a year doing what you are wanting to do.

"As much as I hate to say it" - too much FSBO hate. Yes, you cannot take predetermined commission. Yes, a buyer's agent is a valuable asset to you and will help you bring the price down and negotiate positive terms. I'd recommend calling a Realtor "Team" and using their exclusive buyer's agent for the best service.

As much as I hate to say it, you don't pay anything to any agent. The seller does. (Don't get me started on how this should be split between both parties.) You can't take a cut of commission.

A good buyer's agent will save you more than he or she costs. A bad buyer's agent will cost you more than he or she saves. It depends also on how good you are at finding comps, finding a good home inspector, arguing about how much any problems the house has (which come up in the home inspection), etc. I am not a realtor, but when I was buying my Austin home I had a buyer's agent who saved me probably 16K. She got less than 3K for her work, so I was very satisfied with her and have recommended her often to others.

When the listing agent showed you the house, he/she should have given you a 1 page form called "Information About Brokerage Services". This is a form that is required by law to be given to any prospect on a first face to face meeting. If they didn't they are already doing you and the seller a disservice.

The form explains who the agent represents. If you shared more information than you should have, that agent will be required to share everything they know about you with the seller. Your body language could have shown how much you liked the home too.

The listing agent is not required to give up any of their commission negotiated with the sller.. You don't know what their agreement with the seller is either. If you feel 100% comfortable with negotiating on your own behalf and making sure that you are paying a fair market value for the house, I would suggest it then. How are you going to run comparables to make sure you don't overpay, how are you going to find out what the sellers paid for the house? the listing agent is certainly not going to share that with you. A good buyer's agent could be worth their weight in gold to run all the logistics too.

Naima

It's interesting the term you used "another middle man". Far from it. A buyer's agent is in fact, to borrow a boxing term, your "corner man". He or she is your best opportunity to protect your interests and get the best deal. And as others have already pointed out, commission is payed by the seller and most probably you're not going to get cut. At least not if the seller's agent is ethical. Do yourself a favor, whether you choose myself or one of the other qualified agents in Austin, get yourself a buyer's agent. You will be a more informed buyer and it will save you countless headaches and you will get a much better deal.


Phillip Baird
Realtor
Austin Real Estate Shop
phillip@austinrealestateshop
512-289-5738