Home Buying in 80016>Question Details

Proudusarmyc…, Home Buyer in Arvada, CO

LOOKING TO BUY A HOME, READY TO MAKE A OFFER AND HE SAYS I CANT OFFER OR ASK FOR ANYTHING EXCEPT FOR CLOSING COST.

Asked by Proudusarmychic, Arvada, CO Thu Jun 13, 2013

NOW, I HAVE PURCHASED HOMES BEFORE AND COULD ALWAYS OFFER AND THE OWNER WOULD COUNTER. THE AGENT SAYS THIS IS NOT HOW IT IS DONE IN COLORADO, WITH VA.. I PERSONALLY THING THE AGENT IS TRYING TO MAKE A LARGE COMMISSION OFF OF ME, I JUST NEED TO KNOW IF I AM WRONG ON MY THOUGHTS? HELP

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11
Huh?

As a buyer, the agents aren't making a large commission off of you. They're making a negotiated commission to be paid by the seller. You have no role in the amount of commission to be paid. It's none of your business. Keep your nose out of it.

As for "the agent": Whose agent? Yours or the seller's. Now, the seller's agent represents the seller, not you. While the agent has an obligation to be truthful to you, his overriding obligation is to represent the best interests of his client.

If it's your agent who's advising you, then seriously consider the advice. However, beyond complying with whatever rules the VA has, you can ask for anything you want. Maybe what you're asking for isn't traditional in Colorado; I don't know. But ask away.

But, again, the two basic points are: The commission is negotiated by the seller with his/her agent. Whatever they agreed to is already done and it's none of your business. Second, make sure "the agent" is your agent. If you don't have one, get one.

Hope that helps.
2 votes Thank Flag Link Thu Jun 13, 2013
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Get out your calculator. Assume for argument sake that the realtor is getting 2.5% commission less $100 to help pay for the marketing costs. Calculate the commission on the amount you want to offer and then calculate the commission on what the agent is proposing. I'd bet the difference is actually quite small in the scheme of things. If you still feel confident that you are doing the right thing, then insist that the realtor do as you instruct her/him. Realtors have a fiduciary duty to obey the instructions of their clients, however, they are also obligated to give them good advice. And, when you lose the home because you did NOT follow the advice of your realtor, don't complain. Learn from this experience and, if you lose the home, move on graciously. Who knows maybe you're right, or maybe you'll be a trend setter in Colorado, but be prepared just in case.
2 votes Thank Flag Link Thu Jun 13, 2013
Have read the answers. responding to your portion of the question "...I can't offer or ask for anything except for closing cost" The anything is part of the confusion. Example, asking for closing cost, the pool table, trampoline in the back yard and seller to pay for remaining security system subscription, may not fly with the lender because of lending guidelines. All the other agents are correct about this is a seller's market for most of the neighborhoods here in Denver Metro.

In a seller's market, sometimes the best deal is getting the house at the prevailing prices and prevailing rates. Just recently I worked with a buyer on 4 contracts bidding full price or above before we got a house on a 5th bid.
1 vote Thank Flag Link Thu Jun 13, 2013
And turn off the caps lock, that is annoying.
1 vote Thank Flag Link Thu Jun 13, 2013
I don't sell in Colo but I can't imagine not being able to ask for anything you want. Lenders have restrictions about how much concessions are allowed, but unless you violate that amount I can't see why asking would not be allowed. VA loans do have some rules, but what are you wanting to ask for? To a seller it all comes down to the bottom line and it does not much matter how you get there. It sounds like the agent is worried that you will waste their time writing offers that will be rejected. An experienced agent does not need practice writing low ball bottom feeder offers that make them no commission, new agents will though since they need the experience of wasting their time.
1 vote Thank Flag Link Thu Jun 13, 2013
You can ask for whatever you want, but can you put a deal together by doing so?

Colorado. Prices were up 10% from December to March; who knows how much they've gone up since then. In a seller's market, you don't have the leverage that you did two years ago.

All the best,
0 votes Thank Flag Link Tue Jun 25, 2013
Proudusarmychic,
I just recently sold my house and the buyer was using a VA loan. Whoever "he" is needs to be fired! A VA is different from other loans, but as far as what your payments will be, what you want to offer, down payment, etc. You CAN AND SHOULD always ask.

We used Colleen Mullins, she is FANTASTIC. She is NOT in it for the money, she is in it to help you get a home that you will want to be in for the rest of your life. With our last purchase she actually cut her commission so we could get the house because my husband and I did not have any credit. She is truly a great one.

Thanks, and if you have more questions you should contact her
0 votes Thank Flag Link Tue Jun 25, 2013
Proudusarmychic,

It sounds like you are trying to work with the listing agent. If so that is a big mistake. A Buyer's Agent works for you and will write the offer you want without conferring with the listing agent as to what the seller will or will not do. The listing agent works for and has a fiduciary duty to the seller, not you. Your agent can work this through and negotiate on your behalf. Ultimately, the seller will be paying your Buyer's agent's commission. If it is an MLS listing, that is already settled. I hope this makes sense to you. To work directly with a listing agent is like going to court without an attorney. It just makes sense to have someone on your side who is experienced and looking out for you and has your best interests at heart. Let me know if I can help you further.

Robert McGuire ASR
Broker/Consultant
Your Castle Real Estate
Direct - 303-669-1246
http://about.me/robertmcguire33
0 votes Thank Flag Link Thu Jun 13, 2013
You don't pay the buyers agent, the seller does. It is a seller market and many homes are going in the first two days with multiple offers and above asking price without concessions. It sounds like he is trying to get you into a home. Talk with your agent, listen, ask questions, listen, ask more questions and go buy a home. Remember: He is not buying the home, you are. Good luck!
0 votes Thank Flag Link Thu Jun 13, 2013
It is a total sellers market right now, so the agent may just be trying to help you get the house. But, on the other hand you can offer what ever you like, and the agent should be clear on that. You can ask for anything you like in presenting an offer to the seller. I am not sure why anyone would say you can not do that.
0 votes Thank Flag Link Thu Jun 13, 2013
I agree wholeheartedly with Suzanne. The commission difference isn't all that much. I honestly think your agent is trying to help you achieve your goal - purchasing a home. We are in a different market now. Most areas around the Denver metro area are in a SELLERS market!!! This mean that buyers have less negotiating power. If you want the house, you should make your offer as attractive as possible. I hear your complaint lot lately from buyers. Sometimes it takes a few low offers, and losing out to other higher offers before buyers listen to their agents. With that said, your agent should ultimately listen to you and submit the bit you want. But don't complain when you don't get the house because the seller accepted a higher, better offer! Good luck to you!

Sally Grenier
http://www.searchwithsally.com
0 votes Thank Flag Link Thu Jun 13, 2013
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