Home Buying in Madison>Question Details

Dave, Home Buyer in Madison, WI

Found home-Ready to make offer- can we negotiate fee if hire buyers agent at this point?

Asked by Dave, Madison, WI Sun Apr 20, 2008

We have found the house we want after looking at 30 . We are loan preapproved....no home contingencies. We don't have a buyers agent. Since we have don much of the legwork, if we were to now sign with a buyers agent to oversee the offer and closing can we negotiate a part of the commission to be returned to us or other savings? I read on yahoo answers that this was possible. Thx in advance

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Thx all for the advice. We decided to go with a buyers agent of our own. And will make an offer on a home soon. -Dave
0 votes Thank Flag Link Wed May 14, 2008
Just wondering how this worked out for you? Did you receive an acceptable answer and did you get the home?
0 votes Thank Flag Link Tue May 13, 2008
Hi Dave,
You don't mention if you have tipped your hand to the seller that you are interested. And you don't mention whether or not the seller is represented (listed). I will assume the answer to bother is no. So, it seems the question boils down to what you think an Agent gets paid to do. If the answer is pack you up in their car and tote you off to see 30 houses, then certainly you have done that work by yourself. But, if the Buyer Agent is able to save you thousands off the purchase therefore recouping all or part of the BA fee which typically is 3%, why wouldn't you? There are many items in a good Buyer Agent skillset, of which knowing a property's market value is, knowing the market conditions where you are at (locally) and what the seller's "competition" is, just to start with. Then there is the issue of the Offer To Purchase, a legally binding instrument. A Buyer's Agent has the duty to know the language in the Wisconsin WB-11 Offer To Purchase and what it means. Translation? You can sleep at night right up to closing day. Since you are pre-approved and can write a "clean" offer, you are in the driver's seat with regard to negotiating position. There's nothing like having dry powder. On the other hand, if you are smitten with the property and want it at all costs, then you probably don't need an agent but definately write an offer contigent upon attorney review. Good luck!
0 votes Thank Flag Link Fri May 9, 2008
Your question does not address what you are ultiately looking for, which I believe is dollars toward closing costs or other inceentives toward a purchase.

Representtion by an agent (Buyer Agency) is your agreement to hire an agent to represent you. In most situtions the Buyer's Agent (paricularly those belonging to coopertive agreements from MLS systems) is paid by the seller for a fee for bringing the Buyer to 'the table'; and closing as disclosed in the cooperting agreements between brokerages. Buyer's agents have the ability to negotiate their fees between themselves and their clients (BUYERS) ... BUT normally only with the agreement of their Brokerage Firms.

Why would you be worried about the fee a seller would pay an agent/brokerage firm? It seems the issue for a continetious buyer should be will the seller pay the buyer concessions (ie. loswer purchase price, closing costs, buy-downs, etc.). This question might not be about a fee agreed to between brokerage firms( buyer Agent fee), but rather the willingness of the seller to contribute toward the purchase.

Good Buyer's Agent wikl will dilligently to support the interests and the buyer they represent. Having representation in complicated markets is ALWAYS na good idea. if fees paid to the agent are an issue to you, then talk with a number of agents and brokerages to determine their policies. But, please remember, professional Realtors must always put the interest of their CLIENTS (those they represent) above all others. it makes good sense for most home purchasers to have their own agent.

Good look in your home search.
0 votes Thank Flag Link Mon Apr 21, 2008
This is possible. Buyer agency fees, similar to real estate sales commissions are completely negotiable. It seems in the way your question is worded that you don't expect to pay the buyer's agent yourself but have them paid by the seller. What might complicate your plan is the fact that you've already seen the home you want to make an offer on. If you saw it with another real estate agent, the fees being offered by the seller may become an issue under "procuring cause". What this means is the efforts of the agent who introduced you to the property may be entitled to a commission.

A way to avoid this issue and still have representation on your side of the table would be to contract with a buyer agent and pay the buyer agency fee yourself. Again, this fee would be negotiable.

Hope that helps and good luck.
0 votes Thank Flag Link Mon Apr 21, 2008
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