Contrary to what some people feel, statistics do prove out that a person working with a real estate agent will get a better deal on both the purchase of a home and the sale of their own home. The system certainly isn't a closed one. If you have the kinowledge, the desire and the time to represent your self then by all means do so. It is a service like many others. I am very good with cars so I will fix my car myself. This doesn't mean I would universlly speak badly of mechanics who charge a fee for their service. I have helped people purchase homes who have decided to list their own home and try to sell it themselves. Very few are successful as it costs a great deal to market a home today. Check out the price of one newspaper ad. My company puts a home on eight major internet websites. This costs a lot of money, but this is also where 87% of buyers are looking for homes. Where do we get the money to do all the marketing? From the commissions we earn and I do mean earn. If anyone thinks this is an easy job and we all get rich then I suggest they get their license and try it out. The turnover in real estate is extremenly high. Why? Because you work all hours of the day and night, always at the beck and call of your clients, Saturdays and Sundays, holidays, showing dozens of homes to clients who can't make a decision, or decide not to buy etc. Who pays for all of my time and gas money when this happens. I do!!!
Also, don't think that if you deal with a seller and don't use an agent, that out of the goodness of their hearts they are going to drastically reduce the price on the home. It doesn't happen. If anything, statistics show that you will most likely spend more than if you used an agent.
The questions asked is when is my commission in play? In my case it isn't. I charge for a service I render and I have fixed costs that I have to pay to do so. It is my business and this is my decision. You have the right to either find someone who will do it for less or do it yourself. I must do a good job because I have a long list of satisfied customers who refer new clients to me. This is how I determine the worth of my services. Don't expect me to work for free and I will pay you for whatever services you can render. This is the way it works. There isn't any reason to get angry and abusive about it. By the way, I wouldn't expect any agent to negotiate a god price and deal on a home for me if they can't even negotiate their own commissions.
There have been quite a bit of back and forth on this topic. Wow. Lori Rossi seems to have written a very good response to your question. Simply put, if you don't see the value in your Realtor, don't use them. Follow Asher's advise and do it yourself. I don't know what has happened to him but he must have had a bad experience. That's a shame. However, if the Real Estate profession didn't offer a viable service, it certainly would have been "out of business" long ago. Find a Realtor you trust and use them. But don't call me, my services and fees have already been established by ME. I don't work for free, I can't work for free. I have to put food on my table and gas in my tank.
When is your salary "in play", Asher? When do you kick your salary in?
The selling agent cannot effectively represent your best interests based on Ohio Agency Law. It's the responsibility of both of these agents to explain to you what types of agency relationships are and what they entail. You can also choose to represent yourself, in which case, the selling agent's commission agreement is with the seller alone and that percentage of the commission may vary. I strongly urge you to enlist the assistant of an agent you trust to work on your behalf. Without professional assistance, too many issues can fall through the cracks that may wind up to haunt you.
Finally, a smart, honest agent works hard and should be compensated. Think about it. Would you reduce your paycheck if someone asked? Good luck!
I'm weary of reading post after posts full of personal attacks from you without reading an anwer to my question: When do you forego a portion of your salary?
Your ridiculous attitude about your "salary" are exactly what give real estate agents such a bad name. You provide a service for a negotiated fee. You obviously don't understand the meaning of the word "negotiated." Do you really believe you have a right to 6% of every real estate transaction? Your hubris is remarkable!
You did not answer my question: WHEN do you defer your salary? WHEN? when do you kick in part of you salary?
I understand that you are under a misimpression that my salary is 6% of a transaction. It is not. Your thickheadedness is remarkable. You are also are wrong about who sets my salary. My salary is determined by the seller and the listing agent. Only a real dolt would not think that someone has no right to a salary.
Based on my experience, you should stick with one Realtor that is in your best interests. Having a "buyer's agent" is the best way to go. The listing agent would be a dual agent on just that property that they have listed. When an agent shows you a home, that is the home you would work with them. So if the Listing agent showed you the first home and that is the home you would like to put an offer in, then you would have to honor that and use the listing Realtor. Also, not all agents are Realtors. Some are just Real Estate Agents. Realtors have to subcribe to a higher standard of ethics. Make sure whoever you are working with is a Realtor. You have to make the final decision of who you feel comfortable and trust. The seller pays the commission for the buyer's agent most cases. I wish you all the best in finding the home of your dreams!
Sheri Mapes the "Cincy House Expert"
As far as commission... well, here's the thing. Check with whatever brokerage you use to make sure that the brokers work out the commission. Being that you initially saw the home with the sellers agent, there might be (I am in a different area, and definitions vary) reason for that sellers agent to argue they are the procuring cause, and therefore not required to pay your buyers agent fee as would normally be done. Not knowing specifics about "back on the market" this could be different, too, if it is a new listing agent or new listing with the same agency.
If you are in a buyer agency agreement (again, this varies by contract and locale) your agent may be entitled to a commission, whether he writes the offer or not. In other words, you might be stuck paying from your pocket either way. Since you haven't written the offer yet, there is time to negotiate this. Make sure the brokers have it worked out, tell them you are not expecting to pay anything from your pocket, and get it in writing BEFORE you make your offer that the broker is not expecting you to pay out of your pocket. If you don't do this, then it is possible that, after settlement, you could potentially be facing a claim (maybe even a lawsuit) against you for commissions owed, and then it is up to a judge to decide - better for you to negotiate it now.
As for you getting a split of the commission - at this point, if you are successful in provoking the agents to work out the commission split among themselves, I think you should leave it at at that.
My opinion, my STRONG opinion, is that a buyers agent brings tremendous value to the buyer. Sellers hate it when buyers have their own agent, but most buyers are smart enough to know they need someone representing them, so sellers concede that is the industry standard, and go with the flow because they want to sell. Again, in my STRONG opinion, that buyers agent needs to demonstrate their value to you. There are good agents and bad ones and everything in between. Make sure you have a good one. Especially if the property is a short sale or an REO.