Real Estate

Why can't I get a better deal without a buyers agent?

  • Last Updated:
  • May 21st, 2019 5:41 pm
[OP]
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Dec 10, 2008
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Why can't I get a better deal without a buyers agent?

Assuming I'm an unrepresented buyer, wouldn't the seller's agent push my offer harder than if I was represented?

Option 1: Seller's agent keeps the whole thing for minimal extra work.

Option 2: Seller's agent takes 3.5% instead of 5%. Makes an extra 1% for minimal extra work. Seller's save 1.5%. Both people are happy.

How come "if you buy unrepresented, we'll discount the property by 1.5%" a more common selling tactic?
Let's hug it out
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Aug 2, 2010
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Here 'n There
Because the horse already left the gate on the commission deal made with the seller.
Newbie
May 6, 2019
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Assuming I'm an unrepresented buyer, wouldn't the seller's agent push my offer harder than if I was represented?
Yes, in a black and white world.
BUT
If there are two offers on the table and yours is lowest, no amount of pushing from the seller agent will convince the seller to take yours over the higher one.
Even if there aren't two offers, sellers usually know the market price of their property. Unless you're offering around what's expected, no amount of pushing from the agent will help.
So basically, the seller agent really can't push your offer. The details of your offer will stand out by itself.

From a buyer's POV, I would find a buyer agent I can trust and have him/her do the work.
The commission this agent makes isn't coming from me. The seller is paying that.
You could argue that you're paying indirectly for it in the purchase price, but... from the seller agent's POV, an unrepresented buyer means that the agent has do the paperwork that is usually handled by a buyer agent.
Will the seller agent really discount the commission? It's more likely he'll keep the full amount for himself and count it a lucky day.

Of course, if you're well-versed in real estate, there's nothing wrong with doing all the work yourself, going in unrepresented and negotiating a good price for yourself.
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Mar 27, 2004
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It will only matter if the offers were close. within that 1% savings you speak of.
What matters is the amount the sellers will ultimately get and the conditions.
Full-time Realtor
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Sep 7, 2018
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If the selling contract is signed, but there is no buyer agent to give 2.5% to... Does that commission disappear? How is the selling agent now entitled to it?
Deal Guru
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Mar 23, 2008
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RCGA wrote: Assuming I'm an unrepresented buyer, wouldn't the seller's agent push my offer harder than if I was represented?

Option 1: Seller's agent keeps the whole thing for minimal extra work.

Option 2: Seller's agent takes 3.5% instead of 5%. Makes an extra 1% for minimal extra work. Seller's save 1.5%. Both people are happy.

How come "if you buy unrepresented, we'll discount the property by 1.5%" a more common selling tactic?
Your approach might work for a property that’s been sitting on the market for awhile. But in those cases, you can usually just negotiate without worrying about the 1.5% commission difference anyway.

I’ve said it before, and I’ll say it again. If you’ve done your homework and know what property you want to buy and what price you’re willing to pay (I.e. you’ve done the bulk of your homework already), you might as well find a realtor willing to split their commission with you.

C
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superscoots wrote: If the selling contract is signed, but there is no buyer agent to give 2.5% to... Does that commission disappear? How is the selling agent now entitled to it?
Because
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Feb 15, 2018
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Dude, the seller does not really care where the commission goes. In their contract they are already giving up 5%. How that 5% gets split is non of the sellers business.
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Jan 30, 2006
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canuckstorm wrote: Dude, the seller does not really care where the commission goes. In their contract they are already giving up 5%. How that 5% gets split is non of the sellers business.
Fortunately that's not the case
First - no idiot seller currently pays 5% on sale - standard commission is 3.5%
I bought multiple properties and never used buyers agent
And sold twice to buyers without buyer agent
The sellers contract usually says - 1% to sellers agent and 2.5% to buyers agent - if no buyers agent you can definitely save those 2.5%
Everybody always happy - 2.5% a lot to pay to a parasitic buyer agent
[OP]
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CNeufeld wrote: I’ve said it before, and I’ll say it again. If you’ve done your homework and know what property you want to buy and what price you’re willing to pay (I.e. you’ve done the bulk of your homework already), you might as well find a realtor willing to split their commission with you.
The best I can find is someone willing to do 75/25 on 2.5% commission

So I'm going to essentially paying them $10,000+ to answer an email, open a door and send me a stock offer sheet.
Let's hug it out
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kashirin wrote: Fortunately that's not the case
First - no idiot seller currently pays 5% on sale - standard commission is 3.5%
I bought multiple properties and never used buyers agent
And sold twice to buyers without buyer agent
The sellers contract usually says - 1% to sellers agent and 2.5% to buyers agent - if no buyers agent you can definitely save those 2.5%
Everybody always happy - 2.5% a lot to pay to a parasitic buyer agent
Actually you are wrong. It doesn't 'always' say that and you cannot 'definitely' save that. 2.5%+2.5% is still the majority these days. I should know. I'm an agent and you aren't!
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RCGA wrote: The best I can find is someone willing to do 75/25 on 2.5% commission

So I'm going to essentially paying them $10,000+ to answer an email, open a door and send me a stock offer sheet.
See below & you can join the gravy train too... Then you can make $$$ for 'answering email, opening door & sending offer sheet'. If you don't want to then don't complain.

Actually it's a lot more work than that but I get that you are a bit ignorant of what's involved and the liability incurred, but so be it.
[OP]
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eonibm wrote: See below & you can join the gravy train too... Then you can make $$$ for 'answering email, opening door & sending offer sheet'. If you don't want to then don't complain.

Actually it's a lot more work than that but I get that you are a bit ignorant of what's involved and the liability incurred, but so be it.
What does a buyer's agent do, after the paper is signed? And don't give me fluff.
Let's hug it out
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RCGA wrote: What does a buyer's agent do, after the paper is signed? And don't give me fluff.
Start doing some research on the google and then you'll know. I can't spoon feed everyone.
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Jan 30, 2006
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eonibm wrote: Actually you are wrong. It doesn't 'always' say that and you cannot 'definitely' save that. 2.5%+2.5% is still the majority these days. I should know. I'm an agent and you aren't!
I don't know_anyone_ who paid 5% in the last 20 years - not a single person -
I have no idea what majority you're talking about
not a single agent I talked in the last 10 year ever mentioned 5%
and standard OREA representation contract specifically mentions what buyers agent get
if no buyers agent - no legal or ethical way sellers agent can get those 2.5% to himself
you subtract those 2.5% from the price and then negotiate

of course, parasites like you will say it's not true but it exactly how it works

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