Honoring a contract has nothing to do with self righteousness or fear of being made unecessary. If the seller negotiates with me that if I bring the buyer also, I get a percent less, that's fine by me. Many sellers tell me they HOPE I get the entire 6% because I've been working so hard. Unless people enjoy having their own pocket picked, I fail to see why they want mine picked. When a buyer makes an offer, it is up to the buyer and the seller to negotiate a price. I have already negotiated my fee with the seller. It is not up to me to make up the difference between what the buyer can pay and the selling price, no more than it is up to the buyer to pay more for the house because the seller "has to get" whatever to cover their mortgage.
Sorry to be so late to the forum but I have been working with both buyers and sellers ensuring that they receive the full complement of services associated with me being among the top one percent of realtors in Chicago. I mention this self-aggrandizing statistic to intimate that I have worked extraordinarily hard the past 8 years to be among the elite of my field.
Here's the deal, if you come to my listing without an agent all you ensure for yourself is that I will perform ministerial acts for you but that you will not benefit from the full range of expertise that a qualified real estate professional will provide to you.
Specific to your question how much money will you save? In a word - none. When I list a property my client, the seller, agrees to pay to me and my brokerage a commission predicated on the successful transacting of the property. We in turn have the option to provide from this commission an amount to any member of our cooperative service, the MLS, who should happen to bring forth a buyer and we execute a contract. We don't predicate a savings should a buyer like you happen along and want to transact without professional counsel.
Your question is not an unreasonable one and I only am able to speak from my experience that I don't cut commission because a buyer is unrepresented. The same question came up last night from a buyer who want to disacknowledge his realtor to gain a better deal for a luxury condo I am selling. When I explained to him how the brokerage process works and that he would not benefit with a "better" price without a realtor he re-acknowledged his realtor and her role in the transaction.
Finally, I am sure you are a very nice person and you have discerned a goodly amount in your search alone for a new home. However to me you as an unrepresented buyer represent even more work from my already tremendously full schedule because you do not have a realtor representing you. Aside from the listing contract, a binding legal agreement that stipulates the commission rate (which precedes your arrival), I don't perceive as sensible the prospect of "giving" you money for what promises to be a more arduous transaction process for me and my team.
Best of luck hunting alone.
The Real Estate Lounge Chicago
Also, if you are not going in with an agent then usually the Listing agent takes the entire commission. There are no cuts or discounts so YOU are not saving a dime.
I would advise you talk to a few agents in your area and select the one that you feel most comfortable with and get the home you want.
If you are here asking Realtors for advice, then you need to realize that you really do need a Realtor on your side. We negoitate deals all the time and civilians don't. Get an agent that you can work with. They will make sure everything is done by the book and that your rights and interests are preserved.
Looking for homes online is fine, but offers and contracts are complex and should be left to people who deal with them everyday. I realize you may not like my answer, but you need a pro that can walk you through this complicated process.
In Texas all commissions are paid for by the Seller so having representation costs you ZERO! Would you go to court without a lawyer? Probably not. This is the same type of situation. Get someone to fight for YOU, don't let that listing agent walk all over you.
Also I don't know that I would necessarily list my home with them, afterall what have they done for you? Will he give you a discount to list your home for sale? How effectively will they market my home?
I would find someone that specializes in the neighborhood. Drive around and look at the for sale signs by your house and call them and ask lots of questions. With any luck you will find a reputable agent that can help you sell your home for the right price. Or ask your friends and family for a referral. They may know a good agent that can help you. If they don't call me and I can give you a referral to a good Chicago agent. Just make sure to let me know what neighborhood we are talking about.
Betina Foreman, Realtor Austin Texas
As far as being made unecessary by these websites......Bring it On! Trulia does an excellent job allowing us to converse and pass along free advice but taking away from what I can do to help sell/buy....not a chance. If I really thought Trulia or Zillow was a threat to my profession I wouldn't be on here helping make the website better. And Zillow's "Zestimates???" Just more proof that us Realtors are necessary for the time being.
Good Luck with the offer. At the end of the day we all want you to get the place and hope everything works out for you.
Don't believe anyone who tells you "no one is saving anything"--the bottom line is that if you had an agent, that agent would be getting at least $12,000 for their services--this money DOES go somewhere when it isn't spent, and chances are, the selling agent pockets it.
If you've already found the house you want, I'd consider buying it through buysiderealty.com . That website gives you back a refund of 2% of the sales price if it receives 2.5% as your "agent."
Question 2, is a stand alone matter/transaction (and/or I could be making an incorrect assumption) from your attempt to purchase the subject property. If the listing agent involved is in a position to offer variable commissions on her/his listings or commonly gives multiple transaction clients reduced commissions, then you might see an advantage by listing with that agent.
Trish, by stating that ' I do not have an agent and will not be bringing one on." you basically shut the door on anyone of us approaching you with more then very general advice. You are establishing a "Customer" relationship (not that this type of forum can do more then that) but you are asking "Client" questions. Believe me, I am 100% ok with duel agency and see many advantages to it for both parties.
Question 3, if you want Realtor advice, you need to retain one (either the listing agent, one of the fine folks on this string or ask a friend for a referral.) Think of it this way - what if I give you all the info you were looking for over this blog based on your questions and even somethingâ€™s you more then likely are unaware of, and later today I have a "client" who also becomes interested in the same property. See the issue I just caused myself and how I failed my real â€œclient".
The only way to get trusted advice is to create a relationship in which â€œtrustâ€ is a key component.
Commissions are negotiable between seller and agent... But there are varying levels of service that different realtors provide -- I would pick my agent based on how well they are going to market my house to bring the buyers in, not how much $ I can save on commission.
What do you have to negotiate with? First, any negotiating skills you may have? Second, hopefully, a knowledge of the comps. I'm not sure how you plan on getting them without an agent. You can try Zillow, but I--and a lot of others here--will caution you that Zillow isn't particularly accurate.
As for using the seller's agent to sell your property: That's fine if you think the seller's agent is competent, knowledgeable, and professional. And if there's a good relationship between the two of you. And perhaps the seller's agent would reduce his/her commission if you were involved in two transactions. But that's in the future. There's nothing you can do about whatever commission the agent and the seller have agreed to on this transaction.
You're asking for "any advice on how to negotiate all this," but it sounds as if you've already decided on your negotiating strategy: Go in without anyone representing you and assume that this will somehow appeal to the seller's agent. That's not the course I'd recommend.
One quick tip: Remember--the seller's agent is only an agent representing the seller. If you're trying to negotiate the price of the house down, whether or not you're using your own agent, the person you must negotiate with and appeal to is the seller. Find out what the seller's needs and motivations are. Put yourself in the seller's shoes. Offer a solution that works not only for you, but also the seller. It could be price...it could be terms...it probably is both. But in any case, shift your negotiating focus from the agent to the seller.
The only one loosing anything is you the Buyer if your state recognizes Buyer Agency., You are giving up your right to have someone in your corner negotiating in your best interest.
If you have to sell your home to perform on the new home. You have no negotiating power. Especially in the current market.
The listing agent may give you a break on your listing but that will not affect the commission the Seller already agreed upon on the home you want.
You will get a better price break by getting your own agent and asking them to take a lower commission on listing your home if you allow them to represent you on the purchase of the new home. If the sale is contingent upon your home selling, It is better to have it listed with someone before you try to negotiate purchasing another home.
Besides choosing the right agent to sell your home requires a lot of homework on your part. You will want someone familiar with your area and who offers superb marketing skills. This will save you more money in the end.
The listing agent enters into an agreement with the seller to sell the home for a 5% commission. If a buyer brings his agent along, the seller pays the 5% commission to the listing agent, who then pays half of that to the buyer's agent . If the buyer does not bring an agent along, the listing agent still gets the entire 5%. The contract has already been signed by the seller that they'll pay 5% to the listing agent.
In rare cases, the listing agent may agree to reduce their 5% commission to, say, 4% or so when they are taking on both sides of the deal. But this is NOT always the case and in fact many brokers have a policy that will not allow this to be done. Keep in mind that when the listing agent is handling both the seller and buyer side of the deal, they are doing twice the work! Therefore they usually require twice the compensation.
Good luck but I do always recommend that you use a buyer's agent when purchasing - it doesn't cost you anything out of pocket. What you THINK you may be saving (assuming the listing agent reduces their commission) is easily recouped by a using a buyer's agent who is a strong negotiator and can get you an even lower price.
It seems that most of us agents agree that your plan will more than likely not save you anything and may cost you more in the end.
I can offer this advice. It seems that your state allows an agent representing a principal in the transaciton to give the principal a commision rebate. If you want to be assured to get some savings solicit an agent to give you half of the commission they earn from this sale as a client rebate. You may get one of the 100% concept realtors to do this for you and still get Buyer Representation. RE/MAX, Centry 21, Keller Williams agents keep a larger portion of the commission and share less with their Brokers. If they earn 3% you will get approximately 1.5%
None. The commission is negotiated between the agent and the seller. The negotiations for the sale are between you and the seller. The seller knows up front the listing agent may bring the buyer and knows if they do, they will pay the commission entirely to the listing agent.
I also was thinking of using the sellers agent to sell my propert as a negotiation too. What kind of commision rates do I have to negotiate with here.
All commissions are negotiable. Here is where you can negotiate. Perhaps they will give you a percent off to list your home with them. Be prepared to pay the entire commission to your listing agent, however, if they bring a buyer unless you negotiate less up front. Personally, if I already negotiate a lower commission to list I'm not going to give up more if I have both sides.
There are no set fees or "standard" commission amounts. Make a proposal and see if it accepted.
I have offered discounts to repeat clients of 1% to 1 1/2% (from a 6% listing) for a repeat sale.