Home Buying in London>Question Details

Steve123, Home Buyer in London, CA

Who pays my real estate agent if I purchase a house privately?

Asked by Steve123, London, CA Wed Jun 6, 2012

A friend of mine is about to sell his house and doesn't want to pay any agent fees. I signed a buyer-seller agreement with my agent a few weeks back. Since I'm not using my agent and she didn't find the property, am I obligated to pay her commision? Did I mess up by signing the buyer seller agreement? Can I put an offer in on the house without using my agent since she didnt find the house. The house hasn't been listed on MLS yet either.

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If you signed a contract, you signed a contract! Reread the terms very carefully. You are legally obliged to honor those terms. The answer to your questions truly lie in the written details.

People frequently think the only things agents do are show houses. You need someone to write up the contact, negotiate with the seller, make sure inspections, disclousres and lending are all in place...Your agent heads up that team.

One last note, buying a home from a friend is tricky business. I would absolutely want either an agent or an attorney managing this so it becomes less 'personal.' Negotiating terms, repairs, etc is better done through your intermediary than you alone with your friend.
1 vote Thank Flag Link Wed Jun 6, 2012
Before you do anything is crucial that you read the buyer's agreement that you signed with the real estate agent. Buying a house without a real estate agent is not a good idea, even if you are buying from a friend. A real estate agent can advice you and perform many vital functions in the real estate transaction that can be the result of a great savings.

Best of Luck,

Maria Cipollone

Century 21 Tenace

Cell: 954 240-5521

http://www.Flahomespecialist.com
0 votes Thank Flag Link Thu Dec 20, 2012
If the deal is between you and your friend, then you don't need to worry about the agent fees. But before that you have go through the buyer-seller agreement you had made with your agent and see if there is anything mentioned like that in your agreement.

A deal with your friend may be smooth and hassle free. But you should be careful in carrying out the respective formalities and all the legal procedures should be taken properly. In this a buying agent, solicitor or lawyer may be helpful. Carrying out the legal procedures in the right way can help you live peacefully in the new house and keep your friendship evergreen.
Web Reference: http://www.propsavvy.com
0 votes Thank Flag Link Thu Dec 20, 2012
Hi Steve,
If you signed any contract with real estate agent, reread the terms very carefully. You are legally obliged to honor those terms. People frequently think that only things agents will do are showing houses. You need someone to write up the contact, negotiate with the seller, make sure inspections, disclosures and lending are all in place...Your agent heads up that team.

One last note, buying a home from a friend is tricky business. I would absolutely want either an agent or an attorney managing this so it becomes less 'personal.' Negotiating terms, repairs, etc is better done through your intermediary than you alone with your friend. You can search for some reputable and expert firm for making investment, for detailed information of real estate agents rules and policy you can search on Plaza estate website.

http://www.plazaestates.co.uk
0 votes Thank Flag Link Fri Sep 21, 2012
Hi Steve123,

In CA, if you signed a Buyer Representation Agreement (C.A.R. Form BRE), you could be liable for paying commission to your agent's Broker who will then pay your agent. You need to read the contract carefully to see what you agreed to pay and for what time period the contract is. (When does it expire, is it for specific property addresses of any property you purchase, etc?). Depending on what you agreed to in the contract, your agent could be due commission whether they showed you the property or not. If you are liable for paying them, you may as well use their expertise. You state they don't have much experience but hopefully their Broker does and their Broker has the responsibility of 'overseeing' everything in the transaction. If you don't want to pay them, maybe you can get the seller to pay them - it would still be less commission the seller would be paying since they won't be paying a Realtor on their side of the transaction.

Hope this helps.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Wed Jun 6, 2012
We are dealing with a real estate agent who is very new in the business, under 5 homes sold. They do not have tons of experience and to be honest I feel like I have done more work than she has. We are using this agent because she is also a friend of ours. ( I know we shouldn't have done this now ). We have no intentions of trying to sneak around behind her back and not pay her for her services so far, she has taken us through 4 houses. The person selling the house is a colleague and we are not "close friends." He just mentioned to me that he was going to sell his house and that if he could avoid paying real estate fees then I could afford the house much easier. If i buy his house and still use my agent, who pays her? Does this come out of my pocket since the seller doesnt want to pay any real estate fees?
0 votes Thank Flag Link Wed Jun 6, 2012
Cindy hit the nail on the head:
Do you think there was ever a person who got screwed by a friend?
You have no one to protect your interests;
If someone had to choose between thousands of dollars, and a friendship,
which do you think will win?
0 votes Thank Flag Link Wed Jun 6, 2012
nobody will pay, but neither will you have her expertise guiding you through the transaction
0 votes Thank Flag Link Wed Jun 6, 2012
If there are no commissions being paid then you don't need to worry about the agent agreement. I personally don't like those and never ask a buyer to sign one. If you buy from your friend you don't need to worry about the other agent. Like Cindy says, buying from a friend can be trouble and a good way to end a friendship. Be sure to have a lawyer involved to deal with the contracts and keep you in the right direction.
0 votes Thank Flag Link Wed Jun 6, 2012
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