Home Buying in Coppell>Question Details

Eric, Home Buyer in Carrollton, TX

I am considering going with one of the buyer agents that rebate 2 of their 3% back to the buyer.

Asked by Eric, Carrollton, TX Wed Aug 14, 2013

Since I spend a lot of time researching I'm confident of my ability to find the right home for myself. I don't need anyone to drive me around. The rebate realtors handle the deal from my offer to close. Am I missing something or is this the way to go for someone like me that has the time to research for himself?

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Lanre Folayan’s answer
Its funny how home buyers want a rebate. Do you get rebates from your Doctor,Dentist,Restaurants etc? Also you said that you don't need a real estate agent,who is going to get you inside the house? How are you going to access the contracts that you have to fill out to submit your offer? What are you going to find comps to support your offer? And please do not say Z,T or R.com-You know who they are I am just not saying their names. Like someone said we get listings in real time unlike the Z,T and R.

Who is going to negotiate on your behalf? I am going to go into more detail. But its more than what you think. When we real estate agents stop letting the public devalue our services,then we won't have no more freaking discount real estate brokers and home buyers who think that they can buy a house for almost free. http://www.buyandsellnewhomes.com
1 vote Thank Flag Link Sun Jun 15, 2014
My answer is if that agent is willing to give her commission away that easy then how easy do you think it will be for them to give away your money when negotiating the price of the home on your behalf. This is the largest purchase of your life and you pay for what you get and from what I have seen you end up loosing with an agent like that.
2 votes Thank Flag Link Wed Jul 2, 2014
Plenty.....a great realtor does much much much more than drive you around. Really that's the easy part. For example i know the best lenders who close on time...EVERY time and who will probably save you more than that on your loan. Good example is one of my buyers just save $9000 off their closing fees by using my lender versus the first one they chose, not to mention a better interest rate, that will save them even more.

Coppell like many cities has lots of variables. Does your realtor know which homes and neighborhoods are in the preferred school districts? Do they know where the boundary lines are? Do they know which neighborhoods tend to have foundation problems and which don't? Do they know which title companies close on time and which don"t? Do they know where the potential trouble spots are? There are literally probably 100s of other issues that can and often do come up in a transaction. These guys tend to work for companies that are no deep on resources, so do they have board certified real estate attorney's they can call for free when a problem comes up? Do they have not just other agents in their office, but a number of brokers they can go to when issues come up? Will they show you foreclosures where the commission may not be 3%?

Sometimes it all works out fine....smooth..not problem and you make out like a champ and save some money. However ask the great agents today how many transaction they've earned their money on this year and you can hear the stories. These days not every transaction is smooth and easy. If you get in the weeds you are stuck or you are on your own trying to figure it out. It may very well cost you more to save. I can tell you as a realtor...legally I can write my own contract in Austin, San Antonio, or El Paso. Would I.....likely not. I don't know the first things about those cities. I want a great realtor there to be my advocate...my eyes...my ears....to look out for my best interests.

Here's a couple of test questions you can ask your Coppell realtor:
1. What is the Northlake project and what effect will that have on housing in Coppell?
2. What are 3 new building projects going on in Coppell who are the builders and what are the price ranges?
3.What are 3 neighbohorhoods in the city of Coppell, but are not in Coppell ISD?

If they can't have a nice discussion with you about these basic questions, they're probably new to the business, part time, and could very well cost you a lot more money than you will every save.
2 votes Thank Flag Link Wed Aug 14, 2013
My answer below was cut short.... I wasn't done...

my final point is this Bruce.... You (and Realtors in general) provide a great service and earn your pay. When considering a career upon my upcoming Navy retirement I considered Real Estate Sales (I had a TX license back in the mid-80s) but no thanks... you folks work way to hard and I'll be semi-retired... no weekends for me....
Summary- Thanks for your reply Bruce.... as mentioned... all great points but at least as far as THOSE go.... I am confident I don't need a Realtor for them.... Just a discount Realtor to handle the final paperwork.
Flag Wed Aug 14, 2013
Great answer Bruce. All great points but each I've already considered and I'm in no way concerned about. 1- loan: My wife works in the mortgage industry so I'm set there. 2- School district: Don't care... no kids, not concerned about resale. 3- Foundation problems: My inlaws are familiar with this issue in the Carrollton / Coppell area. 4- Title company: My close friend is President of a very large title company. 5- 100s of other issues that may pop up: I'm not selling and will have a 9 month window to make the move happen... in the unlikely event an issue pops up, I move on to the next house.... but remember... I am using a buying agent... I'm just using a discount agent.... if it can't be fixed by this agent or the listing agent then it's best I move on to the next "dream" house.... or, as mentioned... I wait until they figure it out... I'm not on a time schedule of having to "close this week". 6- I am in NO way interested in a foreclosure or short sale....
Flag Wed Aug 14, 2013
Bruce Lynn, Real Estate Pro in Coppell, TX
You know what, Eric? I fully with you on this. If an agent will do what you need for 1% then I say go for it. Not every buyer needs the same amount of service. My time is worth money. If you can save me some time I can save you some money. I still think you get what you pay for but if want you want is what you get for 1% then rock and roll!
1 vote Thank Flag Link Tue Aug 20, 2013
Seems to be there are 3 types of folks on this issue:

Those that think:

1- You should ALWAYS have a full commission agent regardless because something ALWAYS goes wrong and only a Realtor can fix it.

2- Agents just do paperwork and collect thousands of bucks in commission.

3- It's a case by case basis.... not ALL transactions require a full commission agent but most do.

I know there are horror stories on all 3 sides, but if you are honest you MUST say not ALL Real Estate transactions require a full commission agent.

on a side note... it really seems some agents really are angry about the fact discount agents exist.
1 vote Thank Flag Link Wed Aug 14, 2013
Any one taking this position will likely find that "the smarter you become the less you'll know..."

Get it in writing and be sure you understand all terms and conditions. 2-3% back to the buyer should be carefully questioned...
0 votes Thank Flag Link Tue Jul 1, 2014
Finding the home is about 10% of the process. The other 90% is getting to a successful closing. Very few transactions are "easy" any more....from contracting to inspections, to repairs, to financing.
If all you think you need is someone to write a contract, find a board certified real estate attorney to do it for you. This will be your cheapest route.
You also want to check with your lender about rebates. Some don't allow it or have specific ways they want it handled.
3% is a common commission, so I'm not sure why an agent would give you 100% of their commission back?
0 votes Thank Flag Link Mon Jun 30, 2014
Bruce Lynn, Real Estate Pro in Coppell, TX
Understand the market is different everywhere but rebating not part of my platform. Do you get a rebate from your Doctor, Attorney & do you rebate money to your clients. Find it very interesting that something like this is that important to you but we all roll different ways. Enjoy your research & best of luck.
0 votes Thank Flag Link Fri Sep 27, 2013
I am a realtor in TN and we don't have this rebate situation you talk of but as an agent I can give you some points to think about past finding the house-

1- agents use the multiple listing service not realtor.com, zillow, trulia,etc to locate and find houses that match the criteria their clients give them. The MLS is the source/database of all homes and from here feed into the other sites (which may or may not be updated accurate or even on the market)- Especially in this short inventory its to your advantage to know the day the house goes on the market not 4 days later when it feeds into websites and then by time you see it online, make an apt to see it you now have 3 other offers to contend with or its under contract....

2-Contract to closing - this is where most of the deals are lost. You want to make sure you have an agent that has strong negotiation skills-(contract pricing, working with other agent and seller, inspection/repairs and even appraisals esp when they have to defend a value)- The best price on a house over 30 years financed means more money on your investment than a couple thousand at closing. BUyers representation being complimentary and getting great, strong representation can't go wrong.

3- food for thought- who are you likely to give your time and attention to- someone you get paid full price from or 1/3 from- logically speaking you will get put at the bottom of a case load and that could hurt you in the end to. Timely responses and attention is your best bet at getting the house you want at the price you want.

In the end its your transaction and up to you who you want to choose but buying a house is the largest investment in someone's life - I personally want the best realtor I can find.

Saw a quote and thought it fits "if you think hiring a professional is expensive wait until you hire an amateur to do the job"
0 votes Thank Flag Link Fri Sep 27, 2013
Just for the record there are times when agents discount the sellers fee if they use the same agent to purchase another home, or if the client uses the agent multiple times.
0 votes Thank Flag Link Wed Aug 14, 2013
good info... thank you.
Flag Wed Aug 14, 2013
Well, there's always somebody angry about something, Eric. There are people who post on this site who are angry about real estate agents. C'est la vie, non?
0 votes Thank Flag Link Wed Aug 14, 2013
As one other agent said, you get what you pay for.
0 votes Thank Flag Link Wed Aug 14, 2013
You do realize that neither Agent sees their 3%?
They have to split with their Broker.
And, tell us, what are YOU doing to earn that 2%?
0 votes Thank Flag Link Wed Aug 14, 2013
yes ... I do know... I was a licensed TX agent in the 80's prior to joining the Navy.
Read my answer to Bruce below to see what I'm doing...
Flag Wed Aug 14, 2013
As you can see, there are more reasons than not to use an agent and not expect their fees. As for researching yourself, the only website that is 100% accurate is the mls that we licensed agents use in our associations. Agents do much more work than you think they do. One of my clients commented "Buying a house without a Realtor is like going to court without an attorney" Also, since you are not paying their fee, why should they give it back to you after working so hard?

Liz Renfro
William Davis Realty
0 votes Thank Flag Link Wed Aug 14, 2013
So far some great points by all.... Bruce spelled it out pretty good and you can find my reply under his answer.

As far as Mack saying you probably "won't be able to convince me otherwise" is simply not true, just waiting for something that I hadn't considered.

BTW- Thanks to each of you for taking the time out of your busy schedule to provide some advice. It's appreciated.
0 votes Thank Flag Link Wed Aug 14, 2013
I do not see anything at all wrong with an broker offering to rebate part of the seller-paid commission to the buyer client. However, he should not sacrifice service in order to do this.
0 votes Thank Flag Link Wed Aug 14, 2013
It's not the way I'd go, but you know what, Eric? I don't think there's anything we can to convince you to do otherwise, and besides - life is short, and if you want to be your own buyer's agent, then by golly, I think you should give it a go!
0 votes Thank Flag Link Wed Aug 14, 2013
Hi Eric,

Agree with Jason. You can expect to get what you pay for. Plus the seller pays for the commission not you. You should get 100% of the service especially a new home is the most expensive investment most people make in their life. The question to you is, is it worth the 2 percent if anything happen during the transaction?

0 votes Thank Flag Link Wed Aug 14, 2013

I have found in this business like most things in life you get what you pay for.For most people buying a home is the largest purchase they will ever make.A good Realtor can save you thousands and steer you away from the many pitfalls that can happen along the way.Let me just ask one question, If they are willing to give away their own money before the transaction ever starts how hard do you think they will work to make sure you keep yours?

Jason Todd

Web Reference: http://ToddHomesForSale.com
0 votes Thank Flag Link Wed Aug 14, 2013
just make sure they have the training and skill to handle any problems that come up contract to close. that's where 90% of our value is. Would you use an attorney who rebated most of his fees? You would not even ask. We too are professionals who deserve what we earn. For most of us, this is what puts food on our tables and roofs over our heads. It's not a side line, it's a profession.
0 votes Thank Flag Link Wed Aug 14, 2013
I totally understand which is why I am doing you a favor by allowing you to not spend time doing things for me I already know how to do.... The time you save not having to search for my home likes/dislikes, comps, show me listings all over the county etc... will allow you to spend more time on the client that NEEDS that help and is going to pay full commision. It's really a win-win... we both win.
Flag Wed Aug 14, 2013
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