A buyer's agent can help you in many ways, such as negotiating a lower price for the home, obtaining a seller's contribution to your closing costs, and bringing important matters to your attention in regards to defects in the home whereby you can request a financial allowance to repair them. This advice may save you even more financially than the 3% cash back in your question. No, the agent should not give you the 3% as that could be a violation of Texas law (I'm not a lawyer, so I'm saying "could"). Please consider using a buyer's agent so that your best interests are met and see how she or he can save you even more than 3%.
How do you think the Seller will feel if they have to pay commission to the Listing Agent, so he/she can give it to you? If the Listing Agent decides to discount, it will most likely go in the Sellers pocket.
In order to handle the transaction themselves, the Listing Agent has to do a lot more work. i know you think that all a Buyers Agent does is show homes, but showing homes is just the beginning of a long multi-step process to a successful close. Why would they work harder for less money?
Since the LA currently works for the Seller and has established a relationship and a marketing plan, the LA now has to inform the Seller that he will no longer represent them, but will become a limited agent helping neither the Buyer or Seller. Again how does the Listing Agent benefit if they are taking reduced commission?
Lastly, I have seen this scenario played out over and again. An inexperienced Buyer signs a bunch of documents they do not understand and gets taken advantage of.
I predict you will be back on this forum with questions Like; Can they do this? Is this legal? What should I do now?
I know it's easy to think if we can get a discount on the commission we are coming out a head but i you do not have somebody telling you what you need to know to make an educated offer you are flying blind. The sellers agent is not going to show you comparable homes that may help you realize you should make a lower offer. Honestly although it is legal in Texas to represent both parties it is impossible to do so in a way where both parties receive the best possible service.
When a client wants to make an offer on one of my listings I will get another agent involved to negotiate on the buyers behalf. My sellers thank me for that because we have had deeply personal conversations about their house and what they will sell it for. How can I represent a buyer without hurting my seller with the information I have? It's not possible and I would never do that to either of my clients because to me it is a breach of trust.
Good luck to you.
REALTOR | Mortgage Broker | Consultant
Buy - Sell - Lease - Invest
Keller Williams Realty | 360 Lending Group
I think what you are asking is if you do not have your own agent and you use the listing agent to buy the house, since they will make the entire 6% commission, would any agent consider giving you the 3% that would usually be paid to the buyer's agent.
I do not know of any agents that would give you the entire 3%. Some might be willing to give you a small % towards your closing cost. However, if the shoe where on the other foot and you where the seller paying the 6%, you would probably feel like you should be the one getting a discount from the realtor not the buyer.
All that being said, as a buyer you want you own agent. The listing agent is working for and being paid by the seller. You want someone that is working for you and looking out for your best interest. You need to know that you can tell your agent anything you want to about your situation, financial or otherwise, without fear of it being used against you in negotiations.
Why would you do this?
You would be at a disadvantage.
The professional agent only representing the seller.
The seller has already decided to pay the listing agent X% so there is really no reason to do this.
Even here in Illinois, where we are allowed to pay a portion of our commission to any principle in the transaction (which includes the buyer and the seller), it's unlikely that the agent would pay you the full percentage intended to attract a buyer's agent.
Depending on how it is written up, usually the sellers says" I'll pay 6% to you agent, and if another agent brings the buyers, you give half of that to them. " So in theory, they will get more, if you don't have an agent.
You are welcome to talk to them about that. In the case that they won't get the full amount, and they only get 3% you should be able to get some reduction on the home. Just remember the agent is representing the seller, not you. You will have to make sure you do your due diligence and get them to complete all disclosures about the property. All doable- I did it before I became an agent. Get an inspection etc. you just need to mkae sure you know what you are doing. Good luck to you!
And "they", the listing agent would not be "giving" it to the Realtor or Agent that would have been representing you, the Sellers would be as they are the ones that pay for it. Ask the agent, most have a situation if they bring the buyers & it most likely ends with them getting paid. So in other words it will end up costing the sellers the same either way or you will be in what is known as Duel Agency. Which is an entire separate question and discussion.
However many agents can't due to e & o insurance for both sides of the transaction
The work can be = daunting do both sides of listing / buyer agent may not be worth time vested for the agent VS. where they can locate another buyer for another property same amount of work and get paid.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors