Home Buying in Hyde Park>Question Details

K. Desrosiers, Home Buyer in Austin, TX

How much should I expect to pay a buyers agent to assist in negotiating a contract?

Asked by K. Desrosiers, Austin, TX Thu May 13, 2010

If I find a property on my own, for example on Trulia, but need someone to help draw up an offer and negotiate a deal, how much should I expect to pay for that assistance?

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Answers

22
Greg Cunningham’s answer
Drawing up a contract is no big deal. Charges to represent you could be 1/2 point to a flat rate of a $500 or a $1,000 depending on the property. The broker definitely occurs a liability risk to make sure he/she represents your interest properly. As both a broker and appraiser, I'm well aware of what can reasonably fly with a lender regarding price of property.
0 votes Thank Flag Link Tue May 18, 2010
I think that everyone has pretty much has covered the answer. Pay should be equal to the amount of service provided. I've had past clients do all of the leg work and then call me last minute to represent them. In those situations, I am happy with even 1% because in reality, it's like I'm getting that money for free. I think that you'll find that most Realtors would be fine with that, but there are some that are sticklers about getting their full 3% for the privilege of having them represent you. For more information about Great Hills Austin real estate visit my site.
0 votes Thank Flag Link Tue May 18, 2010
Please forgive me. The previous answer showed that I was Greg Cunningham. Years ago he was my broker, and still is a good friend. However It was I that posted the previous answer

Pat Mallett
www,ReadyRealEstate.com

Dear K. Desrosiers:

Virtually all of your answers are pretty much the same. Our company is Ready Real Estate, and we provide full service listings for 4.5% and Rebate back to the buyer 1% of the purchase price when one of our agents represent you with a buyers representation agreement.
http://www.ReadyRealEstate.com
"Revolutioning the way you buy and sell a home"

Pat Mallett
pmallett@readyrealestate.com
512 940-9291 cell
512 986-6183 home office
0 votes Thank Flag Link Sun May 16, 2010
Are you asking this question with the sense that the seller is selling the home by theirself and doesn't have a listing Agent? If it's a FSBO (for sale by owner), and the owner simply does not want to pay a Realtor, their are a couple different options. I can explain in greater detail if you are still in need of that answer.

Aside from that scenario, consider $95-$125 per hour for an acceptable Real Estate Agent to effectively complete the job that you need done here. "Effectively" is the key word.

You can pay a discount Agent to simply write up random offers as you request, with zero strategy, due diligence, game plan, reaction plan, and accountability. However, you should hire one with those qualities, or the results can be fast to add up to thousands of dollars in missed opportunities and/or over-paying, even if you feel the price you paid was fair.

Separate Good from Great!

http://www.ShawnMon.com
512-330-1075
0 votes Thank Flag Link Sat May 15, 2010
Hello K.

When you are purchasing a property is it aways good advice to use a Realtor. In most cases the buyers agent doesnt charge you a fee. This is always a subject for negotiations. If you found the property and are ready to make the offer use a Realtor to help with the process. There are certain forms that should be used to make the offer and the process of finding the home is only a small part of the purchasing process. A good Realtor is worth his weight in gold. He may save you money and headaches as well. If issues come up with the transaction you may not make a good decision without the help of a Realtor. Please go to my web page and look under the buyers section. It will give you a few things to ask when interviewing a Realtor.

http://www.joevogelproperties.com
Thanks and call if you need help.
0 votes Thank Flag Link Fri May 14, 2010
Im an exclusive buyers agent loctaed in Austin and theres no fee to use my services in the way you have addressed above. As many have explain here, the seller of a resale home or the builder of a new home will compensate the buyers agent. Please take look at my website for more information.
0 votes Thank Flag Link Thu May 13, 2010
Lots of diverse answers have already been given. As you can see we are all independent contractors running a business. The Seller typically pays a 6% total commission to the buyers agent and the sellers agent. If you have found the home and just need representation I would think myself and a lot of Realtors would help rebate part of the commission towards your closing costs.

As a Realtor and a mortgage broker I will typically help my clients receive the best financing for a flat fee of $500 as well. That is a service I provide to all of my buyer clients that saves them additional money.

If you would like to talk about this please give me a call. As you can see by the previous answers given... Everything is negotiable and everybody runs their own business in their own way.

Best of luck to you,

Don Groff
512-633-4157
0 votes Thank Flag Link Thu May 13, 2010
Hi K. Desrosiers,
Working with a Realtor will help you to see the homes on the market, learn market value of the homes you may want to write an offer, better negotiation value and more... Mostly seller pays the commission to Buyers Agent, you should take advantage of having representation during home buying process. Learn more about home buying process http://www.dallashomelist.com
Hope it helps.
Sincerely,
Pelin
http://www.dallashomelist.com
0 votes Thank Flag Link Thu May 13, 2010
Each agent has their own business plan ALSO based on agreement with their broker.

EXAMPLE: My team we have a 75% of our sales commission back to buyer HOWEVER restrictions do apply.

Locate an agent who can work with you.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Thu May 13, 2010
K. Desrosiers,
Buyer's Realtors will almost always get their payment from the sellers who have already budgeted to pay both their selling Realtor and whichever Realtor the buyer uses.. So, essentially it's free for you! Always be sure to use representation!! If you have any more questions feel free to email me. I also have a great .PDF I can email you detailing the home buying process.

Good Luck!

Taylor Shults, Realtor, GRI
http://www.HomesForAustinites.com
TaylorShults@gmail.com
512.667.4738
0 votes Thank Flag Link Thu May 13, 2010
Dear K,
You should not have an out of pocket expense to have Buyers Representation, in Texas the Seller payrs the Realtors commission. So by all means make sure you have someone on your side to help you with this transaction.
Betina

Betina Foreman
Team Price- Prospect Real Estate Solutions, LLC
(512)771-6318
0 votes Thank Flag Link Thu May 13, 2010
Mr. K
As you can see all the answers from all my collegues, buying a home is a process that someone has to be watching constantly for items needed. As for the fee-which is negotiable- I only charge $199 if you have already found a home. Whom ever you choose, make sure the agent lives up to the expectations that you require and he/she answers your phone calls or email promptly.
Good luck in your search for your new home
Ram Rodriguez
ramsellshomes@ultimere.com
512-718-5745
Web Reference: http://ultimare.com
0 votes Thank Flag Link Thu May 13, 2010
Okay, so you've read all the excellent answers posted here about who pays commission. And you've read just how much work a buyer's agent actually does. So what you're probably looking for at this point is an agent who will rebate you a portion of the buyer's agent commission, since you've already found the house you want to purchase. That would be me. I'm very familiar with Hyde Park, in fact I manage a nice house there and am moving there myself next month. I have lived in and around that area most of my adult life, dating back to my college years at UT. I would love to help you out and don't have a problem rebating you part of the commission. Give me a call or drop me an email and we can discuss the details.
Thanks,

Phillip Baird
Realtor
Austin Real Estate Shop
phillipdbaird@gmail.com
512-289-5738
0 votes Thank Flag Link Thu May 13, 2010
Good morning K
You should pay an agent the same rate you would pay them if you had hired them from the beginning of your search. Searching for homes is just one of many jobs a buyers agent does. They will negotiate your contract, make sure all deadlines are met on the contract (and there are many), arrange inspections and negotiate repairs...........the list goes on and on until closing.
0 votes Thank Flag Link Thu May 13, 2010
Typically, if the property is listed by an agent, the listing agent's fee is written into the contract. When a buyer's agent is representing the buyer of the property, the commission is usually split between the buyer's and seller's agent, so both sides have representation. If the property is, "For Sale By Owner," then fees are negotiated between the seller, the agent and the buyer.

I have buyer's under contract on a great house in Hyde Park, and I am very knowledgeable about the neighborhood. Please let me know how I can help!

Warm Regards,

Jen Butel, REALTOR
http://www.jenbutel@gmail.com
Web Reference: http://www.jenbutel.com
0 votes Thank Flag Link Thu May 13, 2010
K. On a typical listing in a MLS (multiple listing service) the seller is paying their Realtor tom sell the property. The agent for the seller is offering a Co-op commission to any Byers agents. So you would be paying your agent nothing, as they will be paid by the sellers agent for procuring a buyer. On a For sale by
owner your agent can negotiate a commission from them. The statistics are that if you buy without an agent you will pay far more than the agents fee over what you could have got the home for.
Contrary to what has been said in an MLS co-op a buyers agent is not paid by the seller, as I stated earlier, the seller is paying their agent to sell and they are willing to share their commission in order to help secure the sale for their client. So you will get full representation for no cost to you.
0 votes Thank Flag Link Thu May 13, 2010
Mr. Desrosiers,
This is a great question and one I get from time to time.
The short answer: Zero ~ Zip ~ Nadda
There is quite a lot that goes on behind the scenes beyond these initial steps.
I' be happy to email a copy of our step by step guide for buyers if your agent has not already done this.
This is one of the first things we do for a client.

Email me directly and I will send it right over. By the way, Google the address of the home you are interested in and at or near the top you'll see a link to our website where you can find a wealth of up to date information.
http://www.teamprice.com

Bill Austin ~ Team Price ~ Prospect Real Estate Solutions
512-709-6343 ~ baustin.realtor@gmail.com
0 votes Thank Flag Link Thu May 13, 2010
Most times the seller pays for the buyers agent with some exceptions. Customarily, the seller pays but there might be a few costs associated with the buyer's agent that might not be covered depending on the company they work for. Usually it's not that much maybe less than a few hundred bucks or so.
0 votes Thank Flag Link Thu May 13, 2010
HI K.,
In Austin, the seller pays the buyer's agent commissions. You never have to pay that. Have you seen the home yet? A good buyer's agent does much more than just write a contract and negotiate. They should run comps for you and help you decide on the correct offer price, communicate with your lender (if you have one) to assure they are able to get your loan done in the negotiated amount of time, help with negotiations of repairs after inspections, check the title commitment for any sched C requirements that need to be fulfilled, communicate with title co, make sure all contingencies are met....the list goes on and on.
0 votes Thank Flag Link Thu May 13, 2010
You should not have to pay anything because the seller pays the listing agent a fee to cover the buyers agents fee. (unless it is FSBO). Please call and I'll be happy to help you!
Web Reference: http://Www.lorischultz.net
0 votes Thank Flag Link Thu May 13, 2010
I concur with the previous answer. If you need help with just contract execution and negotiations, I will be happy to assist you for a nominal fee.

Please feel free to contact me anytime.

Steven Nusinow
(512)922-7588
0 votes Thank Flag Link Thu May 13, 2010
This will vary depending upon the area and the agent you select. Some agents will accept a flat fee depending upon the amount of assistance you will need. But if the home is listed with an agent, their listing agreement will cover paying the buyer's agent from the commission earned from the sale. If the home is a for sale by owner, a buyer's agent can ask them to pay the commission, or flat fee, from their proceeds. It really will depend on the property you find, the agent you hire, and the location you are in.
Web Reference: http://www.midgahouses.com
0 votes Thank Flag Link Thu May 13, 2010
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