Q: Buyer Agent

[elty]

So I was about to drop my 3 cheques for a new house. I was trying to bargain a bit by saying sicne I am not using a buyer agent, they are saving a bit on commission so therefore I should get something back. However that woman told me they don't pay for buyer agent and if I pick one I will be responsible for the service fee? Is she just lying?

[oeketer]

So I was about to drop my 3 cheques for a new house. I was trying to bargain a bit by saying sicne I am not using a buyer agent, they are saving a bit on commission so therefore I should get something back. However that woman told me they don't pay for buyer agent and if I pick one I will be responsible for the service fee? Is she just lying?

I think shes trying to pull a fast one.

[elty]

How much do they usually get? 2.5%?

[oeketer]

How much do they usually get? 2.5%?

2.5-4.5/5% depending on how much the vendor has agreed to pay if its a resale. IF you are buying from the builder than its whatever they have chosen to gave agents if they are working with agents.

[brunes]

How much do they usually get? 2.5%?

The buyer's agent gets 1/2 of the selling agent's commission. If there is no buying agent they get to keep the whole thing. You have every right to negotiate because of this - remember you're not negotiating with the homeowner anymore, but the agent directly. "if I buy this house form you what cut do I get since I do not have a buyer's agent". You should be able to manage at least 1%.

[elty]

Sorry I was not clear enough. I mean I am looking at a new home. I know condo builders use Realtors to promote their condo, but not so sure with new houses.

[oeketer]

Sorry I was not clear enough. I mean I am looking at a new home. I know condo builders use Realtors to promote their condo, but not so sure with new houses.

some builders co-operate with agents, some don't. If they do they usually pay a commission to the buyers agent. If you are not using an agent, they do not have to pay that commission and therefor you should be able to negotiate a discount. Under no circumstances, as far as I know, does the buyer pay the agents commission.

[jerryhung]

I hate how new house/condo builders

- give 2.5% to the agent if we bring an agent to buy
- give nothing to us if we buy ourselves, with NO DISCOUNT (yes, we asked)

Then when we try to negotiate with our agent, we don't even get 1% back (out of 2.5%) because she says there are tax, broker fees, etc...

The deal didn't go through, party because of that
Now I am quite glad it didn't go through.

[grant]

So I was about to drop my 3 cheques for a new house. I was trying to bargain a bit by saying sicne I am not using a buyer agent, they are saving a bit on commission so therefore I should get something back. However that woman told me they don't pay for buyer agent and if I pick one I will be responsible for the service fee? Is she just lying?

She may be telling the truth or maybe no. If the seller has a realtor promoting the property then probably buyers agents are offered a share of the commission.

You weren't clear who you negotiated with. If you are talking directly to the owner, then there isn't a realtor involved, and yes any buyer's agent you bring to the party would probably want you to pay him.

jerryhung, it sounds like you got involved with a sneaky realtor. Next time, shop around and find a realtor who will give you all but a few hundred bucks back. (which is still good money for a few hours work).

[oeketer]

She may be telling the truth or maybe no. If the seller has a realtor promoting the property then probably buyers agents are offered a share of the commission.

You weren't clear who you negotiated with. If you are talking directly to the owner, then there isn't a realtor involved, and yes any buyer's agent you bring to the party would probably want you to pay him.

jerryhung, it sounds like you got involved with a sneaky realtor. Next time, shop around and find a realtor who will give you all but a few hundred bucks back. (which is still good money for a few hours work).

a colleague of mine at work took his friend who is a realtor with him when he purchased his condo from the builder. The builder paid the realtor a commission, and then he split it with my co-worker.

[elty]

I wonder if I can sign the initial agreement, then find a realtor to represent us during the initial 7 days? I want to secure the unit but not by paying few thousands extra.

[sunnybono]

I think shes trying to pull a fast one.

It depends. Most builders agents tell the buyers agent upfront that they will get a flat fee of $1000 of which will go to the broker first then the agent!!!!

sk

[dealzuser]

So I was about to drop my 3 cheques for a new house. I was trying to bargain a bit by saying sicne I am not using a buyer agent, they are saving a bit on commission so therefore I should get something back. However that woman told me they don't pay for buyer agent and if I pick one I will be responsible for the service fee? Is she just lying?

2.5-4.5/5% depending on how much the vendor has agreed to pay if its a resale. IF you are buying from the builder than its whatever they have chosen to gave agents if they are working with agents.

From what I've, most builders hire real estate companies to sell their properties. My buying agent said she would rebate me part of the commission she would receive. My guess is that if you didn't use a buying agent, the selling agent would have made the whole commission.

BTW, this thread reminds me of this article (below) I read about using buying agents. They are just like any service, they are "tools" you use.

http://www.cavespot.com/forum/viewtopic.php?t=389