They only have to share the commission if a member of their MLS is a co-broker. And, I don't mind telling you that if a listing agent is able to bring a cash buyer who will close quickly, the seller will be quite happy to pay that agent.
All the best,
I told the listing agent to tell the sellers that I do not have anyone represent me- I made sure that the sellers knew that I was representing myself at the closing as well. I paid an attorney $600 to review and help with the transaction and I paid $450 to have the home inspected.
Now as we speak, I am searching for a home to purchase in Cary/Raleigh ( $800-$900K) and I will NOT use any real estate sales people!! I look up the comps, tax value- using Wake county web site, what the sellers paid for the home, the condition to determine what I want to offer.
Also what I have found out in the Raleigh/Cary area that there are many many homes for sale and almost all of them are selling 20-25% BELOW tax value!!
And don't let anyone bs you otherwise on here. Human nature is human nature, the selling agent getting 6 percent will come up with a dozen good reason to tell the selling why it's a good offer and they should hurry up and take it.
The listing agent has a contract with the seller and the seller will pay all the commission to the listing agents company as per their agreement. If the listing agent prepared your offer he becomes your agent and the sellers agent..
Congrats on your purchase!
It's quite common for the sales price of a home to be negotiable - however you likely didn't save the owner any money in commission, or get that rebated back to you. The listing agent simply took the full commission. Sometimes, although it usually "overprices" the home - the sellers will "build" the commission into their sales price.
People have been buying real estate for years without representation and will likely continue to do so. Most people however don't have the time, energy, or experience to go at it alone.
I offer hourly consulting programs that are designed for clients like yourself. You pay me for the services and time you need and I rebate to you the buyers agent commission. You get the benefit of experienced professional service and advice geared toward your best interests, I get the benefit of knowing I will be paid for my time. Real estate buyers can perform on their own many of the chores that previously had to be done by agents, but compensation models for agents have largely remained unchanged. I am happy to discuss how this works in more detail if you are interested.
Or maybe the seller would have come down on their price anyway had a someone with knowledge of the market ran the comps and verified the price before offering. Maybe.
No, that would not be fine. The contract is between the listing agency and the seller. They have an agreed upon amount they will pay the listing agency in order to market and sell their home. If there is a cooperating broker (a buyer's agent), there is an agreed upon amount of that commission that the listing agency will pay.
If there is no buyer's agent, the listing agency does not have to pay out any portion of the commission... but the amount the seller pays the agency is not reduced.
In the grand scheme of things, the relatively small amount of money that you save is insignificant in comparison to the risks.
Good luck with your decision.
If a buyer's agent is involved, typically a portion of the total commission is paid to them by the listing agent in the form of a "co-op" fee. If there is no buyer's agent involved, the listing agent would keep the total commission as agreed. The listing agent is going to get the agreed upon commission regardless - it's just a matter of whether or not they have to share it with another agent or not.
Some listing agreements will have a stipulation that allows for the co-op commission to be saved, should there not be a buyer's agent involved. This would have to be in the listing agreement that was initially signed however.
Everything said, you could certainly "try" to get that commission portion knocked off the sales price, however the listing agent would have to agree to taking a lesser commission.
Hope that helps!
The listing agent does keep all the commission, you aren't their client and they have no agreement whatsoever with you. Their agreement is with their client, the seller. If you decide to represent yourself, Always an option though you'd be making a mistake) they'll end up having to do the work a buyer broker would have to do, though they won't be doing it for your benefit, but rather for the benefit of the seller.