Aside from being a good negotiator, you need someone that has experience in luxury residential communities. Non price negotiation factors like allowing seller to live rent free for one month while transitioning their home goods. Terms and convenience and seller not feeling like he is getting worked over, nickel and dimed is the best strategy. I'm not giving away any more "free" advise. That house could sell fast and you end up in a multiple offer scenario, no kidding!
In short, a non guaranteed $5,000 cap on a probable $25-35K gross commission is not in the cards. I would be willing to buy you a new top of the line washer and dryer $3,000 pair as a closing gift, but not a $30k check.
Also. A agent that's used to doing million dollar deals is also used to making tens of thousands of dollars per deal, so I'm not sure your numbers are going to make them drool in anticipation.
Best of luck,
Question for SRqmd, so you going to sell your current house FSBO? Buy and sell discount often applies to save the seller money if the same agent gets the buy side as well as the listing side.
Correction, a dual agent's first loyalty is not to a seller, read a dual agency clause in the standard MRED 5.0 contract. Both buyer and seller have reduced representation and that might be what this buyer has in mind if he thinks he can save money. Buyer is not party to the listing agreement and has no standing to tell the listing agent to lower his commission to the seller to make a deal work.
Mack, I agree this idea could make sense if the $2,000 negotiation fee was paid in advance regardless of outcome. and the $3k balance provided at closing. Agents are paid a success fee and if this is a one off that goes no where that agent gets nothing. It seems the buyer wants a really good negotiator in order to put forth an agressive offer price and a "good negotiator" can get a deal together perhaps 20% under asking price. To which I would say, why doesn't the seller lower the price to that level and generate a feeding frenzy?
Get a ministerial showing,from the listing agent, sign a no agency waiver and go it alone with the help of an attorney .
I'm an independent Broker-Owner, and I answer only to the law, my clients, and myself. Please include me in your consideration.
One question to you: If this is listed in the MLS, and the sellers have agreed to pay the buyer's agent a fee, why are you going about the negotiating in this method? Are they, perhaps, listed at an unrealistic price? Many sellers in Barrington are still thinking that their home is worth what it was worth in 2007. Sorry to be the bearer of bad news, but that just isn't so. Hope you call us,, but whatever you decide, good luck to you!
First, to answer a few questions that have been posed:
@John: I am not planning on selling my current home in the near future (this will not create a financing issue). I also appreciate your many thoughtful points made in your posts.
@Lela: I don't think "scrimp" would be an accurate definition of what I am trying to do. I think it would be likely that the agent/broker representing me would likely be compensated at a rate of a few hundred dollars per hour. Sure, there are no guarantees in life, but I am willing to pay for good/great service.
@HollyandWayne: yes, this home is currently in MLS
From this discussion and talking to a realtor friend of mine (who does not know this area), it seems that I am leaning in the direction of talking to a few agents to see if they would be open to a creative structure. I fully value the knowledge and expertise of a professional real estate agent - that's why I am heading down this route rather than going it on my own. I know there can be unforeseen things, but I do believe I am in a fairly unique set of circumstances where I would like the help of an expert and am willing to pay for it. I am a free market believer and believe that people deserve to be paid for services. My main starting point in this is that I likely need much less services than the usual circumstances and have a very high chance of getting this deal done if I get the right help. And given the price range ($1M+) it seems like there is plenty of value to be had for an agent outside the traditional model. I've already got a reasonable set of recently closed and still open comps.
So I will call around to a few places to see if anyone has the interest. I definitely do NOT just want the lowest cost service. I realize the agent can save me on the final price, lead through the mechanics of closing the transaction, etc. If you have expertise in the Barrington area and would be open to this type of transaction please let me know and I will reach out to you.
Thanks again to all posters - this has been extremely educational for me.
Independent Broker Owner
RE Marketing Consultants
Our license is as a salesperson and/or a broker, not as a consultant. Certainly, we consult, but is an adjunct to our primary service, which is to broker real estate. I think that holding ourselves out as a consultant would require a very specialized agreement, and our managing broker would of course be responsible for our actions as such.
But I think a buyer brokerage agreement, where the up-front fee is (x), the fee on closing is (y), and the remainder from the co-brokerage is rebated to the buyer, fits pretty neatly into what we're already doing.
I don't want this to be a secret, but whenever I have a seller that's confronted with a lowball offer, and they're feeling discouraged, I remind them that we can lower the asking price to EVERYBODY, to see if somebody is willing to pay more.
And I don't know if $2000 is the "number" or not, but I think we are going to see more and more buyer brokerage agreements that have a front load to them - I'll show you houses and write your deals for, say, two thousand up front, and then you can keep a piece at the back end or so. I'm not saying it will sweep the nation, but it might stop being remarkable.
In theory, a dual agent represents both, but it is human nature to look out for the one you have the relationship with. The law states that you have to be truthful with both parties and not violate their confidentiality--not necessarily be impartial. I'm sure many agents can and do represent both parties well, but this is not always the case. I would not want my agent to represent both parties, but that's just me.
I think this is a pretty good format for a buyer who, for whatever reason, didn't go out homesearching with an agent from the beginning, found a house they want to buy, and wants their own representation. The numbers can vary, but it's basically a good idea.
I've always felt that bringing in a "hired gun" to negotiate a one-off deal was awkward - the agent's not fully invested in you as a client, they don't want to take chances on your losing your dream house, and they're pretty sure that if this deal falls apart, they won't ever get paid, because you're not likely to use them to pursue the next property!
Also: Dual agency is not a good idea. The listing agent's first loyalty is toward the seller.
Most managing brokers would not go along with your proposal and it is not up to the agent to accept reduced commission on behalf of the brokerage.
The Marie Souza Team - Top Selling in Cape Cod
Phone: 508-790-2000 Fax: 508-790-4005
The last two months you work on a project that was really easy, and your boss comes in and says since it was so easy, he wants to pay you half your normal pay. Another analogy. Go to the doctor and say skip the consultation, go right to the surgery I want to save the expense of you Asking me a bunch of questions, I will tell you what I want cut out. Sounds pretty obnoxious doesn't it?
I bet you have a friend or family member in real estate within your ethnic community. Ask them what they think, get your cousin in Lemont or brother in law in Bolingbrook to do this as a favor through their brokerage. Out of area agents, inappropriate to coddle this type of request. I am with Phil how much will you pay each of us for advise? thumbs up to Phil.
I guess you could shop around. Of course I'm curious as well as to what house it is, location, etc.
Feel free to contact or call me if you would like to discuss things further.