Home Buying in Florence>Question Details

Katskeeter, Home Buyer in 41095

What is the best way to negotiate to buy a home outright with cash, should I go with a buyer agent or the listing agent to get most likely best price?

Asked by Katskeeter, 41095 Fri Apr 1, 2011

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OK, I'll play devils advocate and take the other side just to answer the question with more non traditional tones. Sometimes dealing in a cash situation with the listing agent can be fruitful in obtaining a very good deal. How you ask. Your a cash buyer which gets agents attention-big time. A dual agent, which the agent will be, is going to get both sides (all) the commission and sometimes they will negotiate a lesser commission with the seller to make the offer work out. It happens. This can translate into a lower bottom line price that the sellers need to get their bottom amount and thus saving the buyer some extra money that might not have been available with 2 agents. It happens.
2 votes Thank Flag Link Fri Apr 1, 2011
Cash certainly is buying power in any market however when it comes to real estate, buyer's are fortunate to be able to turn to a Realtor in order to increase that buying power ten-fold.

A buyer’s agent not only represents the buyer, but they assist in finding the perfect property, in the perfect area. They review policies, disclosures, and trends; select the perfect neighborhood, school; have connections to top notch inspectors (beyond the standard), or attorneys if need be; assist with info in relation to mortgage insurance, warranty, repairs; and they will also be able to assist you with awareness regarding any first-time or any other type of buyer programs or discounts a buyer might be eligible for.

There is a lot of controversy surrounding dual agency mainly due to those that think it's "about the money" and that they can "save a 3% commission" by using the seller's agent and not bother with a buyer's agent at all; however that’s simply not the case as the listing agreement predetermines the commission. (If the seller's agent sells the house, that commission is collected by the selling agent at 100%; however if a buyer's agent sells the house, it is then split between the buyer's agent and the seller's agent.) Some also believe it's an unjust situation if the Realtor happens to be a friend; just as some say dual agency isn't fair in that how can an agent fairly and efficiently represent both parties--and fairly disclose, disclose, disclose.

Realtors really are experienced and very knowledgeable in many areas; they know people in the business, they keep up on trends and laws and they know neighborhoods. They provide on asking home criteria; property and financial history; historical facts; structural info; and can assist with proper instruction pre- and post-sale permit issues—and, Realtors can get information buyers simply do not have access to, such as accurate CMA’s (comparative market analysis) for proper negotiations. Realtors can inform buyers of price adjustments on the home (from the time it lists to the time the offer is made); they can explain co-relation between tax assessed value and market value; they can introduce the buyer to reliable lenders; and they can evaluate remodels or repairs to the home.

And, Realtors have specialties and niches if you’re looking for a specific type of home (such as an investment vs. a regular purchase); and they have outstanding negotiating techniques that become crucial when it comes time to making an offer--it really does come down to the offer and how it is written. They know the laws and regulations inside and out—or should. And, they can refer reliable, top notch real estate attorneys, or whatever service need you may have—as their network data base is as incredible as they are.

It really is amazing how much a buyer’s agent does for a buyer—and there are so many things to consider—it really is all about the customer service and professionalism. Let them do the work for you—let them make it painless and as worry-free as possible. It really is like an added protection.

A buyer has absolutely nothing to lose by being represented by a Realtor—and everything to gain.

The only other thing I would recommend is to check to be sure the agent is a Realtor and in good standing with their local real estate board (easily found online); the ones who are generally do keep up on the laws and regulations. National Association of Realtors is a great place to look a Realtor up as well to see if they are in good standing.

http://www.realtor.org/rofindrealtor.nsf/pages/FS_FREALTOR?O…

I know it doesn’t make the process any easier—buyers and sellers will always have homework—but having a good Realtor will alleviate some of the pressure and actually make it more enjoyable.

As I believe the majority of the Realtors here would agree—I would definitely recommend recruiting a Realtor to represent you on a home purchase.

I wish you the best of luck. Have an absolutely wonderful weekend.

Pamela Costa
DRE 01757412
Buyers Realty
408-627-1166

A smile speaks every language ~ Have you had your smile today?
1 vote Thank Flag Link Sat Apr 2, 2011
Buyers agent for sure. Remember that a listing agent always represents the seller. More to the point, The listing agent can not help you with any negotiations of price and cannot share any of the sellers confidential circumstances of why he is selling. The buyers agent may be able to bring some facts to you that would give you a better sense of how the negotiations should be handled. Having cash is of course your best leverage position and you want to use that to your best advantage. Buyers agent is the key to your success. Thanks for the question. Other buyers will now benefit from your Trulia adventure.
1 vote Thank Flag Link Sat Apr 2, 2011
Get a real estate attorney and THEN negotiate a contract with a buyer's agent. Do this before you do anything else. Determine how much you want to pay that buyer broker and negotiate with him or her. Most people assume that buyer broker's work for free. They don't. They share the commission and any bonuses offered by the seller.

So here's what you do. Get the proposed buyer representation contract from the buyer broker you want to hire. Make sure they are from a smaller company so that you have less chance of running into a dual agency situation. Do not agree to dual agency. Instead, make the broker agree to withdraw from the file if a dual agency arises and allow you to hire another broker.

Next, NEGOTIATE the compensation that is going to be paid to your buyer broker. Most of them simply take whatever the seller broker is offering. Sometimes its 2.5%, sometimes its 4% with a $5000 bonus. If you want your agent to give you objective advice negotiate a fee and then make sure that any extra that is collected through the MLS or otherwise is credited to you (make sure rebates are legal in your state). Not only will you get untainted advice, but you will likely save thousands of dollars - especially if you negotiate a flat fee or something that is lower than what is being offered through the MLS.

Look through the buyer broker contract very carefully with your attorney and look for any added junk fees hidden in the boilerplate. For example, you may find an Administrative Fee or some sort of added commission payable to the broker. This can be anywhere from $100 on up to $400. Strike this from the contract and if your broker doesn't agree, find another one.

Ask your broker how much time he thinks it will take to find you a house and negotiate the deal (with the help of an attorney). If the broker says 40 hours, than do a calculation to figure out how much of an hourly rate your broker will be collecting and make sure it is in line with your expectations.

I'm the executive director of Consumer Advocates in American Real Estate a non-profit charity dedicated to empowering real estate consumers.
Web Reference: http://www.caare.org
1 vote Thank Flag Link Sat Apr 2, 2011
Cash buyer is attractive to seller not wanting to deal with a lot of finacing contingencies. Listing agent represents seller and Buyers agent represents you. I also agree with Tim that if full disclosure is given for dual representation their maybe more wiggle room in the negotiations. Specializing in Boone County. Best wishes with your home search.

Dee Begley, Managing Broker
EXIT Realty Tri State
7920 Dream St
Florence, KY 41042
859.466.3870
dbegley@triexit.com
1 vote Thank Flag Link Fri Apr 1, 2011
A GOOD Buyer's Agent will always get you the Best Price!!

........And I just happen to work the Florence, KY area.

Gene Whittle
859-360-5011
genewhittle@gmail.com
1 vote Thank Flag Link Fri Apr 1, 2011
If you are an experienced buyer then by all means working direct with the listing agents does have its benefits. If you are not expereinced you may want a buyers agent, but make sure teh agent is well experience din cash offers, not all are. You need to know ho to right the contract in a way the seller will like, accept and it protects you. The biggest issue is do not include any contingincies and close within 30 days.

Please see my blog for more tips ad andvice on making offers.
1 vote Thank Flag Link Fri Apr 1, 2011
If you intend on engaging in aggressive negotiations, our recommendation is to avoid getting into the process with the listing agent as your advocate. Since they already have a commitment and relationship with the owner it would be fair to assume you will meet with resistance from this approach.

Buyers are always well advised to seek their own representation to avoid the possibility of a conflict of interest when using the listing agent to support their interests.

Best wishes,

Bill
1 vote Thank Flag Link Fri Apr 1, 2011
Buyer's agent works for you. Listing agent/seller's agent works for the seller. Their job is to get the most for their client - the seller. A buyer's agent can assist and guide you on the best strategy for negoatiating the best price. Alot depends on the motivation of the seller. Do they have to sell/want to sell? Why are they selling? How much do they owe on the property? What are the comps in the area. In real estate, cash is king - you take away the uncertainty in a deal. It's worth a lot. Good luck!

Ralph Windschuh
Associate Broker
Certified Buyer Representative
Senior Real Estate Specialist
Century 21 Princeton Properties
631-467-0009
rwindschuh@c21princetonproperties.com
http://www.c21princetonproperties.com/ralphwindschuh
1 vote Thank Flag Link Fri Apr 1, 2011
How I always explain it to buyers is the example of a husband and wife who are getting a divorce and only 1 party hires an attorney and the other party uses the same attorney. The attorney will have the best interest in the one that hired him/her. They of'course have ethics to think about, however, I always tell buyers that you should have a buyers agent on your side to negotiate for you!! Whether you are buying an existing house or building a house and whether or not you are paying cash or getting a loan, either way, it is always smart to have someone on your side!!
0 votes Thank Flag Link Sat May 12, 2012
Some buyers whether it be with all cash, or financing think that they will always get a better deal if they use the Listing agent for the transaction. This may not be necessarily true. Until negotiations start on any Real Estate transaction, the listing agent may not know what the bottom line his/her seller will take to make the deal happen. There could be a lot of factors in determining what price a seller will take to sale the property, time on the market, number of offers, only one offer, close to the list price, or an offer at list price.
If the buyer is loyal to an agent that is trustworthy and that provides great service to that client, than the buyer is in safe hands for their agent to do their job and get the best possible price for that property for their client.
Some agents are only listing agents and some are only buyers agents, then their are some that do both. In my experience I provide an honest approach to all aspects, when I represent the buyers and the sellers, and when I represent both parties at the same time.
In essence, interview the agent you plan to work with. Ask questions how they conduct their business, what areas they work in, and what kind of information they can give you. You will find out quite fast if they are right for you to work with them, just as how much they will want to work for you. Be honest with that agent, and a good agent will be very honest with you.
0 votes Thank Flag Link Sun Apr 3, 2011
It is fine to work through the listing agent if you are comfortable. In Maryland, the listing agent does represent the Seller and therefore their allegiance is to the Seller by law. Many buyers seem to think that not using a buyers' agent will save the seller's money and therefore they would be willing to sell the house for less. The broker fee is negotiated at the time the house is listed. Therefore the co-operating broker is given whatever is agreed to in the MLS. If you chose not to use a Buyer's agent, then the listing broker should in theory just make more.

If you do not intend to use the listing agent to write the contract and you want to have Buyer representation, it is best to have your Buyers' agent show you the property. It is never a good idea to waste the listing agent's time if you have no intention of using them for the deal. If you ask the listing agent to show you the house, just let them know in advance that you have representation as opposed to doing it after the fact.
0 votes Thank Flag Link Sat Apr 2, 2011
Would you go to court use same attorney as the other party ? Probably not

Recommend have your own buyers rep

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 Sat Apr 2, 2011
Always - use a buyer's agent. Listing agent has contract with seller, Buyer's agent can help you find info on other homes in the market area, and can help you purchase any home. Cash is strong offer, good luck and happy home hunting
0 votes Thank Flag Link Sat Apr 2, 2011
I always suggest using a Buyer's Agent. They will represent your interests & negotiate on your behalf. Cash is King! Good luck!
0 votes Thank Flag Link Sat Apr 2, 2011
I received a second inquiry, however, I answered earlier and would be happy to get you through the purchase. I am an Accredited Buyer's Agent, Union and Ft. Mitchell offices, serving Boone, Kenton, Grant and Gallatin Counties. Please feel free to contact me if you have any further questions.

Bj Schenck
The Agency West
Fort Mitchell, KY 41018
859-466-8147
bjschenck911@aol.com
http://www.bjschenck.com
Web Reference: http://www.bjschenck.com
0 votes Thank Flag Link Sat Apr 2, 2011
Buyer agent!

Remember that the listing agent protects the best interest of seller and only buyer agent can protect yours.
0 votes Thank Flag Link Sat Apr 2, 2011
Buyer's agent.

There's no advantage at all going with the listing agent. And there are plenty of solid reasons to go with a buyer's agent.
0 votes Thank Flag Link Sat Apr 2, 2011
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
You are typically better off with a buyers agent that works for you and not the seller.
0 votes Thank Flag Link Sat Apr 2, 2011
Generally, you are better off with a buyer's agent.

Darlene Bardsley
Broker-Agent
Coldwell Banker Best Sellers
123 W. Second Street
Carson City, NV 89703
(800) 352-4452 Ext. 1111 - Cell (775) 771-1380
Email: jbards1129@att.net
0 votes Thank Flag Link Sat Apr 2, 2011
Like others, I would suggest you find a good buyer agent, who only has your interest in mind.
0 votes Thank Flag Link Sat Apr 2, 2011
Find a FSBO and negotiate directly with the owner of the property - use a real estate attorney to close the deal and complete the paperwork. Eliminating as many "middle" people as possible will yield you a handsome savings. Of course if you are not comfortable without the assitance of a realitor use one but "buying direct" has worked very well for my wife and I over the years.
0 votes Thank Flag Link Sat Apr 2, 2011
Hi, I would alwyas go with your own representation, meaning a buyers agemnt. The sellers agent has the sellers best interest in mind, whether its cash or mortgage it's still the same representation. You may find a listing agent that may be anxious to put the deal together so it will seem like they are representing both parties properly. Once the home inspection rolls arouns or any other issues which call foir re-negotiating can become a problem. In the end it's your choice.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
914.406.9023
0 votes Thank Flag Link Sat Apr 2, 2011
From my perspective (as an investor), having the cash or working with either agent won't necessarily yield one the best deal. One's knowledge, creativity, and flexibility will enable one to get a good deal; the better negotiator will always get a better deal.
0 votes Thank Flag Link Sat Apr 2, 2011
As a lisitng agent my job is to get the highest price in the shortest time for the seller. As a buyer's agent my job is to get the lowest price for the buyer. So if you use the listing agent you have no representation as the listing agent works for the seller not you. Good luck in your search.
0 votes Thank Flag Link Fri Apr 1, 2011
I agree 200% with Scott, Bill and Ralph. You need to have your own representation as the buyer since the listing agent is representing the seller. You will need a buyer's agent who knows the right strategies in dealing with a cash purchase as well. No contingencies and 30 days or less closing is always an incentive for the seller. I wish you luck and would be happy to help in any way I can. No matter who you use, just please obtain someone who has your best interest in mind. Good Luck and let us know how things go for you!

Bj Schenck
Accredited Buyer's Rep
The Agency West Real Estate Firm
859-466-8147
Web Reference: http://www.bjschenck.com
0 votes Thank Flag Link Fri Apr 1, 2011
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