Question removed

Asked by Patrick Beringer, Seattle, WA Sun Jan 25, 2009

This question was removed by Trulia moderators.

Answers

13
Rob Graham, Agent, Seattle, WA
Mon Jan 26, 2009
Patrick,

The seller is offering the buying agent an agreed upon fee as just payment for bringing an offer, representing the buyers side of the transaction, overseeing transactional details, acting as a go between for the buyer, and seeing that concerns on the buyers side are addresed in a timely and effective manner. Any agent knows what a disaster most transactions become if the buyer is not represented. That is why a seller is willing to pay to have a buyer well represented.

I agree with you though, the buyer should never have to pay the commission. The seller should, and any agent worth their weight in salt should be able to see to that.

No buyer should ever have to pay the commission.

Rob Graham
0 votes
Bill Eckler, Agent, Venice, FL
Mon Jan 26, 2009
Patrick,

Your post sounds like it's coming from the perspective of a rookie or someone posing as an agent.
0 votes
Bryan R. Lov…, , Lynnwood, WA
Sun Jan 25, 2009
Patrick Beringer (without a profile) I have a few questions to ask.
- First off, why is it you are so determined to argue about what someone else gets paid? Really, why?

- Second, are you buying a home right now? Have you found one you like?

- Third, if you are so convinced a real estate agent isn't worth what they get paid, is there a reason you are even wanting to use one?

- Forth, Are you or have you ever been a real estate agent?

- Fifth, did you just buy a home and do you feel you got ripped off?

- Last (only because I am really curious) what do you think a real estate agent should get paid in your scenario?

I belive there is more to the story then we are being told. I just want to understand why you are so agrivated with this issue.
0 votes
Patrick Beri…, Agent, Seattle, WA
Sun Jan 25, 2009
Again--Do NOT take the bait--This question was written by a guy named Harry Long, who created a fake profile of me back in October/November and was removed from Trulia at that time.
0 votes
Patrick Beri…, Agent, Seattle, WA
Sun Jan 25, 2009
Someone has created a fake profile with my name.

Clearly this question was written by someone with no understanding of real estate, as it doesn't make sense. Don't answer it--Instead, report it to Trulia.

Thanks
0 votes
Brittany Sim…, , Columbus, OH
Sun Jan 25, 2009
I am confused by your question Patrick-isnt the same agent that writes the offer doing the research, CMA's and showings?

The seller pays both commissions in a transaction. The seller agrees to pay typically a 5-6% commission which is then split between the two agents at closing. 3% to the buyer agent and 3% to the sellers agent. If you chose to not use an agent, the sellers agent will simply make twice the commission. This is an agreement made prior to the home being listed and is a contract between the seller and their agent. The sellers agent then advertises a 3% fee on the MLS to buyer agents who bring a ready, willing and able buyer to the table.
0 votes
Steve McDona…, Agent, Seattle, WA
Sun Jan 25, 2009
Patrick,
First, let's get one detail straight. The buyer does not pay their agent a commission when it comes to property listed on the NWMLS. The commission is paid by the seller to their agent who then agrees to share a percentage of that fee with a selling (buyer's) agent. The only circumstance where a buyer might need to compensate their agent is in the case of a FBOS (for sale by owner) or when a property is being sold privately between consenting parties but a realtor (vs a lawyer) is used to handle the contracts. Neither of those situations would be listed property. Still I understand your reasoning. And I guess it does seem like an imbalance if you have engaged a realtor simply to write-up an offer. If you believe 'one size fits all' when it comes to real estate transactions and the related forms and terms then I suggest you skip engaging your own advocate and just work with the listing agent keeping in mind that the agent is working in the best interest of their client, the seller. But I have to question whether it is ever that simple. Agents are more than individuals who can fill out forms. They will most likely be sharing years of experience to advise you about the contingencies (addendums) and terms that best suit your circumstances. It's is really hard to measure the worth of an agent (listing or selling) until things go wrong. I know that sounds like 'fear factor' selling but it's true. And in many ways few transactions ever occur without some sort of glitch or issue that can escalate into a dissolved contract or worse. Further more, the value of an agent doesn't stop when 'mutual agreement' is reached. There are plenty of events like inspection and appraisal that can present challenges needing professional guidance right up until the actual closing. It's always funny that we have no problem seeking the advice of a lawyer or doctor when necessary but buying the single largest monetary asset for most of us brings out the 'Scrooge' in some. That's not to say realtors necessarily belong to the same category as lawyers and doctors but I can certainly put you in touch with numerous clients who will tell you just how beneficial it was to have a good agent. Finally, since all commission payments are negotiable you might want to seek an agent that could do the job for less. But why would you? You're not covering the fee. Just remember, you get what you pay for.
Steve
0 votes
David Chambe…, , Saint Petersburg, FL
Sun Jan 25, 2009
Don't, write up the offer yourself. You don't have to do anything.
0 votes
Coni Otto, Agent, Burtonsville, MD
Sun Jan 25, 2009
Patrick,

I worked with a buyer for 2 years and we just closed a transaction in January 09, need I say more...
Web Reference:  http://www.coniotto.com
0 votes
Diane Rae Jo…, Agent, Seattle, WA
Sun Jan 25, 2009
Patrick,

A key point that is often overlooked when discussing commission is the management of the purchase and sale contract. In negotiations and throughout the process, there are many pitfalls for the unwary and uneducated. Clients can lose rights and/or wind up in default (thereby losing their earnest money and being exposed to further legal action) in many places through the contract cycle. If they do not have a knowledgeable guide and representative, they are at serious risk. The purchase and sale agreement is a legal contract to pursue a process within agreed-upon guideline. Not conforming to contract requirements carries stiff penalties. How much would someone pay a lawyer for 80 or more hours of work to a successful contract conclusion? The last lawyer I dealt with charges $300/hr.

In addition, there are negotiations throughout the process. Coming to mutual acceptance alone can be a challenge. But, that's just the beginning. Keeping the contract together and creating a win-win for both sides does not happen automatically. It takes skill, intelligence and education to make all of the moving parts work.

There is nothing rote about a residential real estate transaction. Every party is unique, so each transaction is unique. Success requires mastery of a myriad of concepts, then the flexibility and creativity to put some or all of those concepts, to relevant use in a different way for every single transaction. A good agent will absolutely, positively save or make his/her client money, preserve the client's assets and keep them out of legal hot water. How much is that worth?

Best wishes,
Diane
Web Reference:  http://www.DianeRaeJones.com
0 votes
J R, , New York, NY
Sun Jan 25, 2009
How does your hypothetical homeowner know if the agent only wrote the offer versus driving their buyer all over God's creation? I can tell you that very few transactions involve meeting a buyer and having them make an offer RIGHT THERE plus doesn't involve a whole lot of back and forth and holding together. Especially nowadays.
0 votes
Julie Hall, Agent, Kirkland, WA
Sun Jan 25, 2009
Patrick,
Both this listing agent and the selling agent work really hard and deserve every penny paid, whatever the listing agent and the seller decide prior to signing the listing agreement.

A buyer's agent does not "only" write up an offer:
1. I do a market analysis is done prior to writing an offer to help the buyer decide whether the asking price is fair.
2. Bringing a approved, ready & able & willing buyer takes a LOT of work, so getting to the point of deciding which home to write an offer on has already had a ton of "homework" before house hunting even begins.
3. Negotiating and understanding the contracts -- this is a large part of what we are paid for and should not be taken lightly; an agent will be able to help you protect your earnest money and stay within the contracts deadlines in order to protect a buyer from a breach of the contract. There are several points of negotiation during a transaction...
4. Home inspections - negotiating home inspections and helping a buyer understand what they are buying with the help of a home inspector will help them potentially avoid a ton of costly repairs. Make sure the house has good bones or doesn't have a failing septic system or roof!!
5. There are many other points that justify why a buyers agent gets paid their commission (it's free to buyers...never go without representation buying a home); a lot happens between mutual acceptance and closing! A lot....right Realtors? :)
6. What is all of this paperwork? There is a lot of paperwork to navigate and your agent can help you understand what it all means and how the contract timelines affect your review of paperwork.

So, I am not sure if you're a real estate pro or a buyer looking to purchase, but the use of a buyers agent helps all parties. The exclusive representation on each side of the transaction is necessary for all parties and is beneficial to all.
Web Reference:  http://www.JulieAHall.com
0 votes
Bryan R. Lov…, , Lynnwood, WA
Sun Jan 25, 2009
You ask a good question, one that I feel deserves a good response too. I can certainly understand why you would wonder why. An buyers agent often times does spend hours upon hours working with some buyers. Then there are others that the agent maybe shows them one home and they buy it. I had one time I even wrote the offer up for a client without even showing the home. Obviously not spending 3 days or 3 weeks or 3 months (or even in some cases 3 years) helping them find a home.

To answer your question however, as real estate agents, we do not get paid by the hour first off. We get paid only when a transaction closes. So for those easy closings that occasionaly come along, keep in mind the hours and hours we may have spent working a transaction that never closed. The one we never got paid for. Sometimes I agree, it would be nice to get paid for the "time" we spend with a client. But then some people may pay more like 10% vs. 3% or whatever the agent ends up getting paid.

Now another point, usually an agent only gets paid what the listing pays an agent. In other words usually a Buyers agent is payed by the seller for bringing a buyer into their home. Bottom line, the buyer usually does not pay the agent, it comes from the proceeds of the SELLER.

I hope this helps answer your question.
Web Reference:  http://www.homelantern.com
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more