Home Buying in Hammond>Question Details

Lsu2hot2hand…, Home Buyer in Hammond, LA

Hire buyer agent for flat fee.

Asked by Lsu2hot2handle, Hammond, LA Wed Dec 28, 2011

I am looking to hire an agent to purchase an fsbo home in the Hammond area. We should have a preapproval from our lender in the next 48 hours. We also have an inspector on stand by. The asking price is $170,000. Need an agent to do negotiations and closing. We would like to pay a flat fee of $3000. Is this reasonable, or insulting and we should just go with an attorney? Thanks!

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Answers

8
I would like to assist you with your situation.

Glenn V. Butler
Gardner Realtors
(985) 215-4697
1 vote Thank Flag Link Thu Dec 29, 2011
You need to realize that when an agent works a FSBO, he/she winds up doing twice the work because the seller(s) ususally does not know all of the in's and out's of the process. I'd check first to see if the seller will pay the commission or at leat split it.
0 votes Thank Flag Link Thu Feb 16, 2012
Yes, I like your premises, but I think you need to understand Mack's point (he responded first).
0 votes Thank Flag Link Thu Dec 29, 2011
If that is paid upfront regardless if the deal closes or not it is a good offer, good luck,
0 votes Thank Flag Link Thu Dec 29, 2011
LSU,
This is a far better approach than going in without representation. You have one respondent already. Give Glen a call.
0 votes Thank Flag Link Thu Dec 29, 2011
I like your approach and I think you are using the magic number. Its sounds like you have already toured the home and are ready willing and able to purchase. I think many agents would be interested in this sort of transaction, but may make a portion of the commission (10%) nonrefundable if the transaction does not occur since this appears to be a one-time shot. It is still very Important that you choose the agent to represent you wisely, all agents are not created equal some are excellent at their occupation and others are not. Put some time into choosing an agent, interview at least 3 Realtors, seek out those which are full time and turn at least 15 transactions per year. It’s not always about price when it comes to the negotiation there are other items of value, concerns and of course the ability to hold a deal together when the boat hits a few waves in the ocean of life. Find a well-rounded full time agent. Good Luck to you, I wish I was working in your area. Scott
0 votes Thank Flag Link Thu Dec 29, 2011
Are you only wanting to pay $3000 because the seller is refusing to or cannot pay commissions? If that is the case, on a one-time basis, you may find an agent who would be willing to write the contract and take you to closing. Since the agent will not have to drive you around looking for houses and the closing should be pretty quick, this may not be out of the realm of possibility. Be aware that by using an attorney instead of an agent means that you will have a lot of interaction with the seller which you may not want to have. The attorney will not be with you during visits to the house for presentation of the offer, negotiations, and inspections, etc.. An attorney only writes the offer and conducts the closing. The rest you are on your own.
0 votes Thank Flag Link Thu Dec 29, 2011
If you are willing to pay the agent $3000 regardless of whether you go through with the sale, I think you've got a good position.

The problem the "hired gun" approach is that the agent knows they have only one shot to earn a fee, which means that they're more invested in this deal going together than you are. If you start out working with an agent, they're more likely to figure, hey - if I can't get a good enough deal on this house for my client, I'll do it on the next one. In this instance, there's no next one.

All the best,
0 votes Thank Flag Link Wed Dec 28, 2011
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