Already know what to buy. Is it possible to ask the buyer's agent to lower commission?

Asked by Ivy, Tempe, AZ Wed Dec 21, 2011

We already know which house we want to buy so we don't need the agent to show other houses. The asking price is close to 400K. We're looking for a buyer's agent who can help us get the best price. Please email me your contact information if interested. Thanks.

Help the community by answering this question:

+ web reference
Web reference:

Answers

24
Bill Parker, CPA*’s answer
Bill Parker,…, , Scottsdale, AZ
Wed Dec 21, 2011
Hi Ivy:

This isn't directed at you, but I find it amazing how many real estate agents are willing to advise their clients to shop around for the cheapest mortgage lender, but are aghast at the idea of a home buyer wanting to pay less in commission to them..."get what you pay for"; "none of your business (what the commission is)"; "discount qualtity service" "lousy agents (make less)"; and, "If you want a realtor to get you the best price then why would you start by dipping into their paycheck? If someone did that to you would it make you want to work hard for them or would it discourage you?"

How can there be such a dichotomy of feelings on this? I guess it is the old "What is good for the goose, doesn't always feel so good for the gander..."

Find a good, licensed professional in whatever industry you need, and expect to pay them for their professionalism. Or not, and suffer the consequences...

MISSION STATEMENT: To create an unbelievably enjoyable experience for my clients, while guiding them through the most important financial transactions of their personal lives. My clients know me as their Mortgage Lender for Life. I truly appreciate your referrals.

If you think it's expensive to hire a professional to do the job, wait until you hire an amateur.
Red Adair, Oil well firefighter
1 vote
Loren Hoboy, Agent, Phoenix, AZ
Wed Dec 21, 2011
Ivy,
I would like to contact you, but your email is not accessible on this website.
For circumstances where you need Buyer's agent representation to facilitate a transaction, those fees can be negotiable.
If you wish to discuss this further I can be reached at 623-688-0033.

Loren Hoboy
1 vote
Jennie Miller…, Agent, Phoenix, AZ
Sun Jul 15, 2012
Wow! This question has certainly generated a very heated debate. I would be happy to work with you and help you successfully negotiate a purchase contract on the home. I have extensive recommendations from my clients on my trulia profile and would be able to serve you as well as I have served others.
0 votes
John Banker, , Gilbert, AZ
Sat Jul 14, 2012
Research comps online and decide what you want to pay. Get a purchase contract and write the offer yourself. Write in your offer that the 3% normally allocated for the selling agent comes back to you. Do your due diligence. Make sure you include things like an inspection contingency, appraisal contingency, financing contingency, etc.. The internet is making the need for real estate agents in the current form obsolete.
0 votes
Jeffrey Masi…, Agent, Scottsdale, AZ
Wed Dec 28, 2011
Ivy:

We can talk. There are many different strategies to get the best price before asking your own agent to reduce their fee. However, after exploring all options and the seller will not budge on price, everything can be explored.

Jeff Masich
Arizona Homes and Land
JeffMasich@ArizonaHomesLand.com
Web Reference:  http://ArizonaHomesLand.com
0 votes
Barbara Merr…, Agent, Mesa, AZ
Mon Dec 26, 2011
Hi Ivy,

I can help you get the best price for the home you desire in Tempe. Please contact me, Barbara Merrill, Associate Broker with Cacus Mountain Properties, at 480-570-5263. I look forward to hearing from you soon.
Web Reference:  http://www.BarbMerrill.com
0 votes
Susan Lehmku…, Agent, Scottsdale, AZ
Thu Dec 22, 2011
Commissions are negotiable but do you also want to negotiate the service you will receive? Would you negotiate with your surgeon or lawyer? Probably not. Realtors are professionals and have spent considerable time and money learning their trade. Yes, there are agents out there who are not professional and who do a shoddy job and that's why it's important to do your due diligence in order to find a qualified professional to represent you.

Susan Lehmkuhl
Associate Broker
The KUHL Team
your Phoenix Real Estate Source at
Buy and Sell Smart Realty
Direct: 623-256-7270
Email: Susan@PhoenixRealEstateSource.com
0 votes
Spirit Messi…, Agent, Tucson, AZ
Thu Dec 22, 2011
Why would you ask the Buyers agent to lower their commission? FYI, you do not pay it, why would it matter? Most houses listed on MLS are already paying out X%, and there is a lot the agent will do for you than merely find you the house.

Pick an agent, several local agents took the time to answer your post. You can also check out agents based on past client reviews on Zillow.com.

Good luck.
Spirit
0 votes
Brenda & Ron…, Agent, Mesa, AZ
Wed Dec 21, 2011
Ivy,

Buyer's don't pay commission to their agent. The seller pays their agent and that agent has posted in the MLS what "split" they are willing to give to the agent's Broker that brings the buyer.

The largest and most important part is not in driving around and finding the home... it is in having an agent with the experience and knowledge to negotiate for you and to know what issues to protect your interests. If an agent is eager to cut their commissions for you or to pay for something in your behalf it may be because that agent is not very experienced or they may be lacking clients. An agent that has been in the business for years and does a great job will have plenty of referrals to work with. Be careful because you do want an experienced agent!

If you want someone with experience to represent your best interests, please don't hesitate to give us a call.

Best Regards,

Brenda

Ron & Brenda Cunningham / 602-980-3133
**** Recognized in the Phoenix Business Journal as "One of the Top 50 Realtors in the Valley"
0 votes
Pat Hune, Agent, Tempe, AZ
Wed Dec 21, 2011
Ivy:

In addition to all the great answers below here are other reasons why having the buyer's agent reduce their commissions does not make sense. If it is a short sale the bank will decide how much commission to pay. Reducing the buyer's agent's commission has nothing to do with the price. If it is a bank owned property the bank is paying the commission. The bank has already set the price and included the commission when the bank figured out what they wanted to net.

If you want a realtor to get you the best price then why would you start by dipping into their paycheck? If someone did that to you would it make you want to work hard for them or would it discourage you?

At the end of the day even if the realtor took no commission on a $400K transaction the most it might save would be about $10,000. (Remember the realtor still has to pay their broker and most brokers will not let the realtor reduce their commission to the point where the broker would get nothing.) If I am buying a house I would focus on the comps, days on market and the repairs needed on the house rather than the realtors commission to negotiate the best price

Good luck,
Pat
0 votes
My NC Homes…, Agent, Chapel Hill, NC
Wed Dec 21, 2011
You can ask anything you wantt, just remember you're likely to get exactly what you negotiate for. The Seller pays the Buyers broker, and honestly showing houses is the easy part. You want an experiienced agent who can negotiate hard but ultimately sucessfully. They can offer you additional personally vetted resources, such as lawyers, lendrs, inspectors, tradespeople etc.

The agents who will negotiate and agree to cut their commission are the ones who quite honestly are lousty agents and have nothing else to offer.

Good Luck and I do hope you find a great agent and enjoy your new home.
0 votes
Carlos Ramir…, Agent, Mesa, AZ
Wed Dec 21, 2011
Definetely! I am an Accredited Buyer Representative and Certified Negotiation Expert specializing in the east valley and will gladly help you. Just give me a call or send me an email

Carlos J Ramírez MBA, PC
Broker/Realtor, ABR, CNE
602-512-5825 direct
602-749-6327 fax
0 votes
Shawn Ryan R…, Agent, Belleville, NJ
Wed Dec 21, 2011
Seller pays the commission in real estate. Buyer's agent works for the amount being offered by the listing agent.
0 votes
Shanna Rogers, Agent, Murrieta, CA
Wed Dec 21, 2011
Hi Ivy,

All commissions are negotiable. You as the buyer, don't pay the commission to your Realtor. The seller pays your Realtor (and theirs). So, asking your Realtor to lower their commission would not benefit you - it would benefit the seller as their proceeds would be higher.

Your Realtor is worth every penny of the commission they earn. Finding the house is the easiest part of buying. It's all the paperwork and negotiating for you that is where all the work really is.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes
Scott Clayton, Agent, Tempe, AZ
Wed Dec 21, 2011
Ivy,
I'm a rebate realtor and share 50% of the sales commission with buyers. This rebate is credited to you at closing. Information on my website at http://www.cr-az.com

Scott Clayton
Champion Realty
480-216-8668
Web Reference:  http://www.cr-az.com
0 votes
Brad Bergami…, Agent, Prescott, AZ
Wed Dec 21, 2011
Yes if you pay the buyer's agent. If you are willing to pay the Realtor direct you can ask them to take less.

Most buyer's agents get paid by the seller, in the listing agreement. Some agents offer money to you when they close you can find these agents online.
I think you are going to get roasted when you ask most agents. Not sure how much you think you will get from an agent perhaps 1%.. most good real estate agents can save you at least this on the purchase in service alone.
0 votes
Roswell Moore…, Mortgage Broker Or Lender, Scottsdale, AZ
Wed Dec 21, 2011
Hi again, Ivy,

Please contact Loren Hoboy at 623-688-0033 & he'll be happy to assist you.

Feel free to contact me if you have any further questions, I'd be glad to help.

All the best,
Ros

Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct
http://www.ezAZloan.com

We are a Direct Lender, Mortgage Bank where we originate, process, underwrite, fund, AND SERVICE our loans, in-house, with FHA (starting at a 580 score AND still only 3.5% down), FHA Streamline loans (NO minimum credit score, NO appraisal required) Go Green rehab loans, HomePath, Investor Friendly (10 financed properties), VA, USDA, Jumbo, Conventional, plus, we allow Escrow HoldBacks!
0 votes
Sarah Reiter, Agent, Scottsdale, AZ
Wed Dec 21, 2011
Hi Ivy, The commissions are already set in the listing agreement when the Seller lists the home and are not paid by you. Nor are they ever part of a real estate contract because they are not part of the offer/negotiation process. If they were it would have its place in the Arizona contract. You will see no mention of commissions on the Arizona Residential Real Estate Purchase Contract other than that they are paid in full by the Seller not you and the Seller has already factored that into the price. If they feel a need to reduce the Buyer Broker commission to make a little more wiggle room in a sale, that is something between the Seller and the Listing agent and it is listed and disclosed appropriately in the MLS which is binding. Frankly, in the event you did find a Realtor desperate enough to discount their worth they would then contact the listing agent and see if they could restructure commissions which at that point you have now revealed yourself to the Seller as Buyer that is potentially looking to 'nickel and dime' the entire transaction and is a big red flag! if I was the listing agent I would advise my Seller to consider other Buyers over yours for that simple reason. In this market with limited inventory and steep competition I strongly suggest you just find the best Realtor because finding the house itself is the just the start and is hardly the scope of what a Realtor provides in service when you consider what can happen in a transaction. If you want to consider a hard working, ethical, dependable and knowledgeable Realtor to represent you and your best interests I would be happy to send my references. Please email me at sreiter(AT)remax.net. Replace the (AT) with @. Thanks!
0 votes
Roswell Moore…, Mortgage Broker Or Lender, Scottsdale, AZ
Wed Dec 21, 2011
Hi Ivy,

I just answered your question in another area... I wish I'd seen your question here, first. I now have my answer from you.

Do you mind contacting me directly on this?

Thank you & all the best,
Ros

Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct
http://www.ezAZloan.com

We are a Direct Lender, Mortgage Bank where we originate, process, underwrite, fund, AND SERVICE our loans, in-house, with FHA (starting at a 580 score AND still only 3.5% down), FHA Streamline loans (NO minimum credit score, NO appraisal required) Go Green rehab loans, HomePath, Investor Friendly (10 financed properties), VA, USDA, Jumbo, Conventional, plus, we allow Escrow HoldBacks!
NMLS ID 263779 | AZ BK 359295
0 votes
Molly Hay -…, Agent, Columbus, OH
Wed Dec 21, 2011
Keep in mind the seller pays the buyers agent commission. If the realtor reduced the commission it would only benefit the seller. This doesn't make much sense regardless of the price point. If you were to write the offer and the buyers agent put a reduction of commission in the offer this will only give the seller the opportunity to make more money.
0 votes
James Maroe, , Tempe, AZ
Wed Dec 21, 2011
Hello,

You don't need to pay a dime in commission; it is supplied by the seller. In a situation like this, if you were to have a good relationship with your agent, they may be willing to contribute a portion of their commission to your closing costs -- however, you want to be careful that it is with someone who will still give your transaction the attention it deserves so that it goes smoothly.

I am a Realtor in Tempe. You can check out my office/info about me with the web reference below. Please feel free to call or email me and we can chat.

Best of luck,
James Maroe
0 votes
Jean-Leon Ma…, Agent, Tempe, AZ
Wed Dec 21, 2011
As with everything, commissions are negotiable. Be advised, the agents most likely to "discount" their services also provide "discount quality" services. In Arizona, typically the seller is paying any commissions anyway, so it is in you best interest to find the most qualified, capable, full time realtor you can, as they will best be able to negotiate the best deal for you, and avoid the hiccups that occur in these transactions that can cost you both time and money.
0 votes
Ron Thomas, Agent, Fresno, CA
Wed Dec 21, 2011
The Buyer's Agent; YOUR AGENT, does not dictate the commissions, and it would be ridiculous for you to ask for a lower commission so that YOU can get a better price from the Seller.
The Seller and the Listing Agent have negotiated the commissions and it really is none of your business.

If you cannot afford $400 for a house, then you shouldn't be looking at $400,000 houses.

Good luck and may God bless
0 votes
Don Tepper, Agent, Burke, VA
Wed Dec 21, 2011
Sure, you can ask. Commissions are negotiable. But recognize that most of the value you get from an agent isn't as a taxi service. It's in the negotiating, representing you, and making sure the entire process goes smoothly.

I'm pretty sure you'll get some offers from your posting. But be sure to interview them, as you would with any agent, to make sure that you'll be getting the highest-quality service you need.

Hope that helps.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more