Home Buying in 23451>Question Details

Jlm, Home Buyer in 23451

I have been reading these posts and must say I am intrigued. I am in the process of purchasing a new home. I received the cost sheet today and almost

Asked by Jlm, 23451 Wed Mar 28, 2012

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Jim the agents usually have an agreement with their Brokerage in Virginia, and work for a particular split of the money they bring in to the company. In all likelihood, the agent is not making as much as you feel he / she is, but the bottom line is that the seller pays the commissions a great deal of the time. In other words it is not costing you a thing. Some companies do charge "Administrative Fees", or "Buyer Broker Fees", though I personally do not. Sometimes agents will say these fees are what they are making, period. Well that's not always the truth, and I would suggest that you start with an agent who is honest with you.

Should you be represented? That's your choice of course, but there is a reason why I am used by new construction contractors to represent them, and why I have represented six agents in their own real estate transactions. Emotions can enter and sometimes fog one's judgement.

Bottom line Jim, there is a reason why agents many times hire other agents to help them as there is a reason builders who conduct many transactions do the same - just as there is a reason we were named Best of the Best for 2012. Contact me if you would like and we can discuss this in more detail. Take care
0 votes Thank Flag Link Sat Sep 8, 2012
I am assuming the fee you see is the commission paid to the selling Brokerage and not your agent directly. The amount your agent receives as his commission is based on an arrangement between the agent and the broker.

Researching homes is only one aspect of a real estate agent's responsibility. Can you do this process on your own? Sure, but it may be more time consuming and costly. You will need to contact each listing agent directly to view the home they have listed.

Once you decide on which home you want to submit an offer, you will need to research to determine the best price to offer based on comparative market data, the condition of the home, and your assessed value, and are there any competing offers to consider. Is the property a foreclosure, short-sale, or regular? How much negotiation room would you possibly have based on type? What if any seller subsidies could you ask for based on type? Should you ask for a home inspection? What does "as-is" really mean? Even though they say "as-is" can you ask for repairs?

Then when you've determined that, set up an appointment with an attorney to draw up your sales contract / offer. You can probably use this attorney as your closing attorney if your contract is accepted.

What are the legal required disclosures / disclaimers forms required for the property?

What is required of the listing agent? Are they (the sellers) meeting their obligations? Are they meeting their deadlines?

If your offer is accepted, hire a home inspector, be present for the inspection. Determine what to ask for in repairs. Are there timeframes / deadlines that must be adhered to during this process? Negotiate with the seller to fix repairs -- Submitted in writing - what should be stated to protect you and to ensure the repairs are done correctly. Follow up prior to closing to ensure repairs were completed. (Do the repairs need to be completed by a licensed contractors.)

At the same time, continue to work with your lender to ensure everything is going through in a timely manner and that the lender will provide settlement agent with the required documents on time. Determine how much money to bring to the table covering all costs.

What do you do if there is a title issue or a survey issue? What if the fence is on the neighbor's property?

What do you do if their is an HOA or code violation?

Follow up to ensure receipt of the HOA / condo documents.

Find out what the timeframes are for getting out tof the contract based on what conditions and contingencies.

Schedule a time to do your final walk through. What if you discover that something was not completed or a new problem arises? What if they took the chandelier that you saw or a mirror in the bathroom, of the hot tub?

What do you do if the seller's closing on the home that they were going to purchase is delayed or falls out completely?

Your agent is more than than a researcher. His value is in the knowledge required of the contractual process of real estate, the coordination and the oversight of the process and essential deadlines, the negotiation to get you the best deal throughout the process not just with the sales price, the contacts for reputable inspectors, contractors, etc. and if any issues come up, the problem solver. He is there to look out for your best interest and your protection in order to get you to a successful closing or to get you out of a bad situation.

Happy Househunting,
Carolyn Liddell
Sun Realty of Fredericksburg
Licensed in the Commonwealth of Virginia
0 votes Thank Flag Link Fri Mar 30, 2012
WOW... I need to change Brokers. We only charge a $295.00 brokerage fee. :) I think Jim Simms is correct, sound like your Realtor may not have explained the Settlement Statement - HUD 1 very well, or something is amiss.
0 votes Thank Flag Link Thu Mar 29, 2012
Buyers never pay a commission and if you haven't selected a home to purchase that commission is not set in stone.
If your realtor is not doing his job tell him. But his commission does not come out of your pocket. I am sorry you're having this issue. As a buyers agent my fiduciary duty is to my buyer and their needs. Make sure yours are being met!!
Good luck
0 votes Thank Flag Link Thu Mar 29, 2012
I did not realize that until now, but I still think that is high considering the services offered. Thanks!
Flag Thu Mar 29, 2012
Now I am baffled, is he charging you that commission or the seller? It sounds strange if he gave you a fee sheet with seller expenses listed.

What’s a life preserver worth? Probably a lot less to a shopper in the store that it is to a drowning man in the middle of the ocean. I bet your employer would like to pay you a lot less, how would it feel?
0 votes Thank Flag Link Thu Mar 29, 2012
Sorry I didn’t realize my question was cut off. I am in the middle of purchasing a home and my realtor sent me a cost estimate sheet and I about had a heart attack. I could not believe the brokerage fee was $11,400, I was baffled. Not to bash realtors but my agent has done nothing to knock my socks off to pay him $11,400!! I have done all my own research, I find homes and ask him to show me the homes. All he really does is show me homes and fill out paperwork. I think he’s a nice guy but not worth that much. I want to do this on my own and feel confident enough about doing it. Do you think it’s too risky and do you think that is mean of me dropping him because of the outrageous fees? I feel like fees should be regulated and capped, there and so many little fees here and there that seem unnecessary.
0 votes Thank Flag Link Thu Mar 29, 2012
The whole process is is very eye-opening... When you say 'new' home, did you buy NEW construction? Either way Congratulations! ~ Ida Bear
0 votes Thank Flag Link Thu Mar 29, 2012
Your question was cut off. Good luck on your new home!!

0 votes Thank Flag Link Thu Mar 29, 2012
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