Has anyone ever bought a house without a Real Estate Agent?

[BWillie]

I'm looking to buy a house, but I'd like to not use a real estate agent this time if I can help it. I should be able to finagle a better deal (offer less) without a selling agents commissions cutting into the previous homeowner's bottom line.

Just wanting to know how hard this is, and what I have to look out for. What obstacles there are. Mainly wouldn't know how to draft an offer, and what to do to get out of it if needed. I'm going to hire my own inspectors etc, could always draft something with an attorney but that kind of destroys the point in the first place of doing it on my own.

[Hog's Gone Fishin]

You do realize real estate agents work for the seller ,right. If someone is doing a for sale by owner they're wanting a higher price trying to keep the agents commission. They are trying to do a potential buyer a favor.

[BWillie]

Originally Posted by Hog Farmer

You do realize real estate agents work for the seller ,right. If someone is doing a for sale by owner they're wanting a higher price trying to keep the agents commission. They are trying to do a potential buyer a favor.

I understand it as yes the listing agent gets a commission, and the selling agent gets a commission. I've been trying to work directly with the agents listing the homes, instead of having an agent to try to find me a home where they will have a additional commission.

That's how it has worked when I bought my other houses.

[Ming the Merciless]

Originally Posted by Hog Farmer

You do realize real estate agents work for the seller ,right.

In most transactions the buyer and seller have their own agents...

and they split the commission which is paid for by the seller.

Originally Posted by Hog Farmer

They are trying to do a potential buyer a favor.

not necessarily

They (the seller) could be trying to keep the 'commission' (or a part of it) for themselves

Most people are greedy and try to keep at least some of it for themselves......or maybe split the savings, if theyre smart...

But very rarely do they 'give it all away...'


Most commissions are 3% to the buyers agent and 3 % to the seller so for example if there was a house that sold for $300,000 the total commission would be $18,000 which would come fropm the SELLER's proceeds. The house wouldn't go up in price to 318k

so the REAL questions are:

whats the REAL value of the house? Am I getting a better deal without an agent? (SOmetimes agents help the BUYER negotiate a lower price and help with getting financing and inspections etc...)

ALso an agent should help you understand all of the process so that you really know youre getting what you think you are etc...

[seclark]

I did a long time ago...we were just starting out, and knew a couple where he'd lost his local job and was working in kc and was only coming home on weekends.

had a lawyer make up a what I believe was called a wrap around deed of trust. basically, we made a monthly payment to an account for them and then it was transferred to their mortgage account.

after about 3 years we were able to move everything over to our name, allowing the original owners to free themselves from the place we took from them and get their names off of it.

this has been about 28 years ago, so I might not have this completely right, but it did work for us and the owner.

they did have the house listed w/an agent, so we waited until their contract was up with them to make our move.

not sure if this helps, but...
sec

[Ming the Merciless]

Originally Posted by BWillie

I understand it as yes the listing agent gets a commission, and the selling agent gets a commission. I've been trying to work directly with the agents listing the homes, instead of having an agent to try to find me a home where they will have a additional commission.

That's how it has worked when I bought my other houses.

If youre trying to save money:

Spoiler!

Well this might be a good idea but youre not saving as much as you think you are, probably.

Look at the contract....and make sure youre saving anything at all. The contract should specify the selling agent's commission.

I highly doubt youre saving 50% on commission.

Usually commission is about 6%. Ive seen them lower it to 5 % before, which is about a 17% savings.

Ive never seen any of them lower it from 6% to 3%.....if you have someone willing to do that, thats a really good deal IMO.

Anyhow, check and make SURE what % the commission is, and if its something like only a 17% discount you might want to rethink not having your own agent...

Unless 17% of the commission is that big of a deal to you.

Your own agent might be able to negotiate a better price on the house anyway.....so I dunno man. I would have my own agent under normal circumstances, unless I was very familiar with the property.

If youre just trying to motivate the seller and have them go with your offer:

Spoiler!

If youre just doing this to try and MOTIVATE the listing agent to pick your offer...well..thats a GREAT idea!
especially if its a tough market and you want the property really badly. I was thinking you were trying to save money but upon re-reading I think youre just doing it as an incentive to have them pick your offer over all others, which I believe is VERY VERY smart...and will work....because on their end it is DOUBLING their commission and on your end it doesnt affect the price much.

The only way you could get 'hurt' is if there was room to haggle and you didn't haggle as much as you could have because your agent is the same as theirs...but if you know what youre doing and youre sure of the value of the property, I would not hesitate to use this idea in a tough market.

[xbarretx]

as was said earlier, from the buyers side you having an agent or not will not affect the price you pay. the listing agent already has a contract with the seller and thus knows what his/her %(cut) will be. When buying or selling I always use an agent because im not contract expert and feel that if im shelling out 350K+ on something...then I want to not get screwed or at least have a reliable set of eyes watching my back. Thus I do not sweat the commission because I paid the commission when I just sold my house...and someone else paid it when I bought.

It really depends on what market your in. houses in the KC area at 300 or less are going like hotcakes. listed my house out in Gardner, and it was under contract in just a few hours and I got full asking.

Lastly, just make sure you have applicable inspections done and that you know your rights. I have seen sellers not wanting to work without an agent because it can be too much hassle to deal with someone who doesn't know enough about real estate. to many moving parts. make sure to look at the sellers disclosure because if theres a problem or something major on the property then it should be listed on there. I bet the listing agent wont (may not) offer that info of on there own accord.

Speaking of which....I need to update my profile because I busted out of Gardner! wooooo!

[Trivers]

Originally Posted by xbarretx

as was said earlier, from the buyers side you having an agent or not will not affect the price you pay. the listing agent already has a contract with the seller and thus knows what his/her %(cut) will be. When buying or selling I always use an agent because im not contract expert and feel that if im shelling out 350K+ on something...then I want to not get screwed or at least have a reliable set of eyes watching my back. Thus I do not sweat the commission because I paid the commission when I just sold my house...and someone else paid it when I bought.

It really depends on what market your in. houses in the KC area at 300 or less are going like hotcakes. listed my house out in Gardner, and it was under contract in just a few hours and I got full asking.

Lastly, just make sure you have applicable inspections done and that you know your rights. I have seen sellers not wanting to work without an agent because it can be too much hassle to deal with someone who doesn't know enough about real estate. to many moving parts. make sure to look at the sellers disclosure because if theres a problem or something major on the property then it should be listed on there. I bet the listing agent wont (may not) offer that info of on there own accord.

Speaking of which....I need to update my profile because I busted out of Gardner! wooooo!

Words of wisdom from both xbarretx and pawnmover. The buyer agent costs you nothing; but gives you the piece of mind as they are there to protect YOU.. However, for some reason, if the seller does not pay the commission, some contracts state that then YOU are responsible for payment. If the buyer agent contract contains that, walk away and find another agent.

[Iowanian]

Your reasoning makes no sense unless you are buying a for sale by owner.

I have been on the other side and had a home for sale by owner and have potential buyers show up to look with realtors. In those cases I stop the realtor at the door and explain clearly that they do not represent me and I will not pay any fees to them.

I got screwed out of 3% on a deal like that on one of the first houses I sold. I was naive. I spoke to the buyer, priced it, he agreed and looked. Came back again with a realtor " because he felt guilty because the person had been showing him homes and he wanted them involved on his side". I didn't pay close enough attention, signed a paper and at closing had to pay that B 3%. I was furious because I gave the guy the bare bones, no realtor fees price. I didn't want to kill the deal because I was moving across the state and let it go. Never again.

[Bewbies]

Agents are free for buyers. Would you go to court without an attorney to save a few bucks?

[aturnis]

Bought one without, and am currently selling one without.

Pretty painless. The site I used to list basically takes the place of the agent and offers the services and expertise needed to get things done.

Buying was much easier though.

The problem with selling is, everyone assumes I'm trying to keep the realtors commission, so they want to haggle. Like, "I want the house for nothing, even though this is by far the best house I've seen in the price range" offers.

The house is turn key, and in a low price range with high end finishes all new siding/windows, mechanical etc. Basically the only thing that isn't brand new is the electrical and plumbing in the walls.

Listing myself allowed me to keep it priced attractively. Wish people would realize that.

[xbarretx]

Originally Posted by Iowanian

Your reasoning makes no sense unless you are buying a for sale by owner.

I have been on the other side and had a home for sale by owner and have potential buyers show up to look with realtors. In those cases I stop the realtor at the door and explain clearly that they do not represent me and I will not pay any fees to them.

I got screwed out of 3% on a deal like that on one of the first houses I sold. I was naive. I spoke to the buyer, priced it, he agreed and looked. Came back again with a realtor " because he felt guilty because the person had been showing him homes and he wanted them involved on his side". I didn't pay close enough attention, signed a paper and at closing had to pay that B 3%. I was furious because I gave the guy the bare bones, no realtor fees price. I didn't want to kill the deal because I was moving across the state and let it go. Never again.

well, unless you had your own open house....I imagine the realtor/buyer did not simply "show up" at your house. usually if a Realtor has a client wanting to buy a FSBO....they (the Realtor) contact the Owner/responsible party and work out the commission ahead of time. the flip side would be the Realtor (buyers agent) has it in the representation agreement with the buyer that in the event of a FSBO, or a low value property , that the Realtor will get X amount of commission and if the commission is below said amount then the buyer is responsible for the difference. otherwise, the agent is working pro bono. everything's negotiable

[xbarretx]

Originally Posted by aturnis

Bought one without, and am currently selling one without.

Pretty painless. The site I used to list basically takes the place of the agent and offers the services and expertise needed to get things done.

Buying was much easier though.

The problem with selling is, everyone assumes I'm trying to keep the realtors commission, so they want to haggle. Like, "I want the house for nothing, even though this is by far the best house I've seen in the price range" offers.

The house is turn key, and in a low price range with high end finishes all new siding/windows, mechanical etc. Basically the only thing that isn't brand new is the electrical and plumbing in the walls.

Listing myself allowed me to keep it priced attractively. Wish people would realize that.

it all depends on the market analysis. if you have someone who knows Real Estate... then they can figure that out on there own...or if they have Representation...they would know that info and be able to advise the client appropriately. if you have someone without representation then of course they think that... because people don't say.. Hey world im selling this on my own so I can give you a better deal....they say " hey im selling this myself so I can pocket the commission"

[Deberg_1990]

The more you think about it, the more it feels like an agent doesnt do much for you? At least not as much as they make off of you...

[aturnis]

Eh. We got comps from the listing website, listed where we thought was fair. Have had realtors calling trying to get us to list with them for more, b/c "...", of course. Only, once realtors are paid, we end up with the same money as FSBO, only the buyer gets a raw deal.

Forget that. I'd rather choose someone I think is deserving of the deal they're getting. Lots of people who could use a win out there.