Home Buying in 77386>Question Details

Holly24, Renter in 77365

Would a listing agent give us 3% if we use them?

Asked by Holly24, 77365 Wed Apr 13, 2011

If we go directly to the listing agent, would they give us the 3% they wouldve given our real estate agent if we had one? Is this possible?

Help the community by answering this question:

Answers

17
Commissions are already agreed in the listing contract. As a buyer, you do not pay for any commission. You need to be represented by your own agent. If you contact the listing agent, you will not get any representation. By law, the listing agent must tell the seller anything you tell them. They work for the seller not for you. Most likely, the contract will state the the seller pays 6% to the realtors. If you do not have a realtor, the listing agent gets all 6% and you do not get any representation. Think of it this way...If you were going to court, would you let the other attorney represent you? Your confusion is exactly why you need a Realtor representing you. Your Realtor will be able to walk you through the entire process. I would love to help you find a home. Please give me a call. Julie Young 281-734-4846
3 votes Thank Flag Link Wed Apr 13, 2011
Holly,
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%.
Linda Fath
2 votes Thank Flag Link Wed Apr 13, 2011
You know, this question pops up all the time. You have this idea that you can short circuit the process. But, let us consider a couple of things. The Seller has hired the Listing Agent to sell their home for a fee (5%,6%,7%, etc.).

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?
2 votes Thank Flag Link Wed Apr 13, 2011
Probably not for 3% as that is the same they would make if yo were being represented by another agent. So they would have twice the work and liability for the same money. You should use your own buyer's agent so you can have the same representation on your side. There is a lot of things that go into a purchase and if you make a mistake it can cost you a lot of money. Make sure your best interests are being protected and use your own buyers agent.

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.

Don Groff
REALTOR | Mortgage Broker | Consultant
Buy - Sell - Lease - Invest
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
listings@dongroff.com
1 vote Thank Flag Link Wed Apr 13, 2011
Holly some will some wont. If you locate the homes thru the efforts of a Realtor (they show you the home innitially) that agent may have a claim for the work they have done. Personally I have no problem with dual disclosed agency when done properly but there are increased risks and concerns. In general, agents are compensated by the sellers but not always. You may save more than the 3% you are trying to get by simply using a great agent who can negotiate well for you. Using just listing agents to buy homes certainly puts your interests at odds with theirs. (especially if they are also representing other buyers who arent looking to take half their commission) The listing agent wants you to only buy their listing which may or may not be the best deal for you.
Good luck.
1 vote Thank Flag Link Wed Apr 13, 2011
Holly,
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.
1 vote Thank Flag Link Wed Apr 13, 2011
Listing Agent won't but buyer agent might give your 2% or more depending on the type of transaction. Many realtor give back commission these to help out buyers in this tough economic times. Some realtor don't encourage it because they think its bad practice but it all depends on every agent's perspective. But don't hesitate to ask your buyer agent. Make smart decision by working with SMART realtor.
0 votes Thank Flag Link Fri Aug 12, 2011
Why would they do this?
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.
0 votes Thank Flag Link Wed Apr 13, 2011
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
You need to be licensed as a Realtor, not even an attorney can get any part of the commission if he is not a Licensed Realtor. Some Realtors do help you with some percentage of their commision as "selling agent contribution to buyer's closing cost"... but remember is a percentage of the commission they are getting, not a percentage of the purchase price of the home!!!
0 votes Thank Flag Link Wed Apr 13, 2011
I'm not sure if that's legal in Texas, so that would be one consideration. Many states do not allow commissions to be paid to anyone other than a licensed Agency, or Agent.

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.
0 votes Thank Flag Link Wed Apr 13, 2011
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
Will you get the 3% in the form of cash from them? No. Can you use it as a negotiating tool? Perhaps. You would be much better off to have a professional Realtor negotiate a transaction on your behalf. There is so much more to buying an home than negotiating dollar amounts, and only a trained and licensed agent can help you with that. You are WAY more likely to get a better deal on your new home with a Realtor's help, regardless of the commissions!
0 votes Thank Flag Link Wed Apr 13, 2011
If you don't have an agent on your side, you could definitely get a better price on the home.
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!
0 votes Thank Flag Link Wed Apr 13, 2011
This answer can or should only be answered by that listing agent as every agent has their own business model they follow. Literally it would be like asking me if I know the listing agents favorite color and for me to tell 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.
0 votes Thank Flag Link Wed Apr 13, 2011
Understand what you are thinking and your Listing Agent wil be happy to serve you in that capacity as well. The Seller is paying the commission on your purchase. Since again, commissions are negotiable make the best deal you can. Does sound like you wish to Sell high and buy low and not a perfect world. Great service comes with a fair price
0 votes Thank Flag Link Wed Apr 13, 2011
Each Realtor has their own business plan ALSO work within the restrictions of their broker.

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
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Wed Apr 13, 2011
I'm not sure if I understand the first answer. I forgot to mention we are first time home buyers, and are looking to buy.
0 votes Thank Flag Link Wed Apr 13, 2011
Commissions are negotiable, however you generally will get what you pay for(cut rate commissions = less internet sites, pictures, service, some offer no negotiations, Agents and appointments direct with you). My advice pay for the professional and the 5 or 6% will pay off with a higher SOLD price by a professional REALTOR®
0 votes Thank Flag Link Wed Apr 13, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer