We are making an offer and need advice ASAP....

Ok here's the dilema...what would you do in this situation. DH and I went to an open house on Sat and totally feel in love with the house. It has been reduced before and has been on the market for a few months...when we were at the open house the list agent showed us around and was very helpful (which they all are when they want to make a sale)..we must have spent about 40 minutes with him...he was about our age (late twenties) and new we were interested. Anyway, we have been working with an agent (my aunts friend) who is extremely honest and not the type who is out for herself well atleast not with us...but like I sad she is a good friend of my aunts...So here is where the dilema comes in...We were thinking of making our offer through her since we know she will be honest.....but does that look bad that we are not doing it through the list agent who has already called me two times to follow up? What do you guys think? What would you do?

Re: We are making an offer and need advice ASAP....

Was the young broker, the one who showed you the house representing you (as in showing you this and other houses) or representing the seller and showing you the house?

Re: We are making an offer and need advice ASAP....

Just so you know and this dosnt really answer your question. Legally no one represents or works for the buyer you are more or less on your own. The listing agent works for the seller and ur aunts friend may help you out with a lot of stuff and be very honest with you but techinally she is working for the seller also. Why I dont know but this is what I was told.

I would make an offer threw your aunts friend so that you have someone looking out for your best interest. That is my advice
I am actually looking myself and using my cousin b/c I know she is going to do the right thing by us.

Good Luck

Re: We are making an offer and need advice ASAP....

Jo Ann -- respectfully, the reason that I asked the question of Dani is that I believe, from our experience (although I am not an atty) that what you said is not accurate. The seller has a broker if that broker is showing the house, then he deserves a share of the commission. However, the buyer too has a right to be represented by a broker. Customarily most people do not know this and wind up using just the one broker who is not going to push you to using a separate broker because they do not want to split commission. But a buyer's broker represents the buyer and negotiates on their behalf. It is rarely in the best interest of the buyer to rely on the sellers agent yet that is what many folks do. Anyway, I was thinking, since it sounds like the fellow was the seller's broker, why not bring in your aunt's friend as your buyer's broker. She will split the commission and will actually do some work to earn what she gets.

Message edited 9/13/2004 9:36:55 PM.

Re: We are making an offer and need advice ASAP....

---

Posted by DebMaher

Was the young broker, the one who showed you the house representing you (as in showing you this and other houses) or representing the seller and showing you the house?

---

Re: We are making an offer and need advice ASAP....

Then as per my earlier post, you have a very easy solution. Have your aunt's friend call this young man, clearly identifying herself as your (the buyer's) broker to make the offer. Typically there is some negotiating over the commission -- do they do an equal split or what? Then everyone here wins. Your aunt's friend really then can "look out for you" just as you want her to. GOOD LUCK TO YOU!

Re: We are making an offer and need advice ASAP....

---

Posted by DebMaher

Then as per my earlier post, you have a very easy solution. Have your aunt's friend call this young man, clearly identifying herself as your (the buyer's) broker to make the offer. Typically there is some negotiating over the commission -- do they do an equal split or what? Then everyone here wins. Your aunt's friend really then can "look out for you" just as you want her to. GOOD LUCK TO YOU!

---

Re: We are making an offer and need advice ASAP....

this could "potentially" be a sticky situation. upon meeting the listing agent, you should have notified him that you ere working w/ someone. even though it was an open house, he has the right to collect all the commission due to the fact that you did not advise him that you were working w/ someone.

perhaps i did not read your posts correctly and you did in fact tell him, but if you didn't, he might be annoyed upon hearing that you are worling w/ someone.

Re: We are making an offer and need advice ASAP....

I found that even your broker would still be representing the seller. Thats how its is in NY, unless you specifically hire a "buyers broker".

Real estate agents that showed us around and showed us listings other than their own, were still considered to be working for the seller, and we still had to sign a document saying they disclosed that.

I had one such agent offer to be "a buyers agent" but there was a fee involved.

If you feel more comfortable going through your aunt's friend then do so. The only disadvantage to that may be that if the listing agent has other potential buyers, he may work harder to make a deal with them since he won't have to split the commission AND he's got direct contact to the seller (you already know the advantages of going with your aunt's friend - I'm just pointing out the other side as well)

Re: We are making an offer and need advice ASAP....

---

Posted by skew

this could "potentially" be a sticky situation. upon meeting the listing agent, you should have notified him that you ere working w/ someone. even though it was an open house, he has the right to collect all the commission due to the fact that you did not advise him that you were working w/ someone.

perhaps i did not read your posts correctly and you did in fact tell him, but if you didn't, he might be annoyed upon hearing that you are worling w/ someone.

---

Re: We are making an offer and need advice ASAP....

Again, I can only speak of what has been our experience, but it is my understanding that a buyer's broker can be introduced at any time. The reality is, your aunt's friend will make the offer without telling the seller's agent who you are (that is customary) -- he will likely try to create drama to yield (a real or imagined) couteroffer -- if he is doing his job right, he will get on the phone with everyone who saw the house and is interested. Nothing gets things moving on a stalled house sale like an offer. He is obligated under RE code to advise you if there is another offer - but sometimes they fake it to up the offer. Here it is invaluable having someone advise you. He will not know that you are the peopl ebhind this broker and will have to choose to deal with her if he wants your offer. Not up to him.

Re: We are making an offer and need advice ASAP....

how would he not know who they were? On all the offers we put in, we had to sign a binder to give to the listing agent - which had our name and address on it. Kinda gives it away at that point.

We could submit the offer verbally but they wanted the binder right away before they'd consider it a serious offer.

Also, if he doesn't know its YOU, he'll be calling YOU to tell you about an offer and you'll either have to confess then or lie. He may stall on the offer from your aunts friend, thinking he'll get an offer from you.

Either way, it'll seem awkward if you're not upfront about it.

Message edited 9/13/2004 9:53:08 PM.

Re: We are making an offer and need advice ASAP....

yes, if an offer is made in writing, the listing agent obviosuly has access to that and will see who is making the offer. also, he is NOT obligated to notify the potential buyer that another offer has made unless the potential buyer placed the first bid.

Re: We are making an offer and need advice ASAP....

Ok now you guys are making me nervous again....I really had no idea that I needed to mention that we were working with another agent....this is all new to us...We just thought we'd go to some open houses...and if we found something we liked we'd just call my aunts friend and make the offer through him....Do you think I should call him back and say we are still looking around but if we do decide to make an offer it will be though so and so....I didn't think we would have to owe anyone an explanation.....i don't know maybe its just better to go through him and cut out the middle man....Now I'm confused....Geez buying a house is tough!

Re: We are making an offer and need advice ASAP....

i would call your agent and ask for her advise. in the future, always mention to the listing agent that you are working w/ someone. it is common courtesy to let them know upfront. i know you were not aware of this, but for obvious reasons you should always notifty the selling agent.

Re: We are making an offer and need advice ASAP....

---

Posted by Dani00518
....Geez buying a house is tough!

---

Message edited 9/13/2004 9:58:49 PM.

Re: We are making an offer and need advice ASAP....

Usually, the buyer's broker telephones first to suss out the situation and say, " Hi, I am representing a couple who is interested in the house...what is the status?" Then the seller's broker says "let them make their offer" ... they will , and their names will be on it, but at that point, the buyer's broker has identified him or herself. Again, I am NOT an atty but this is how we did it and several of our friend who have used buyer's brokers. While the seller's broker might object, the reality is, if there are no other offers on the table, half of 6% is better than nothing. Of course he is going to push the point, it is money and that always motivated people to do certain things.

Plus, as Lisa T said, if he does call you, that is another time to reinforce, well, our offer is coming through person X.

I guess to me there is nothing more up front than having the buyer's broker call and say "Hi, I represent these folks and they are thinking of making an offer."

Re: We are making an offer and need advice ASAP....

Skew, I agree with what you posted, however, our experience (again, not RE expert) has been that the seller's agent is always motivated to mention the offer to all parties who have expressed interest so as to get the offer as high as possible.

Re: We are making an offer and need advice ASAP....

i could be wrong, but if you are working w/ a buyers broker, you have to identify that upfront. i know that you can choose how you want your agent to represent you (buyers or sellers) for each individual property. however, as the buyers broker, YOU will have to pay commision to the agent.

Re: We are making an offer and need advice ASAP....

But, and this will be my last post in a row because my avatar pic is starting to annoy even me :), skew makes a great point -- give your aunt's friend a call and seek her consel. If she is looking out for you, she will give you good advice.

Message edited 9/13/2004 9:59:34 PM.

Re: We are making an offer and need advice ASAP....

All brokers (seller and buyer) are typically paid a percentage of the sales price (read--from what you pay.)

Re: We are making an offer and need advice ASAP....

well do you think I am lessining my chances of getting the house if we go through my aunts friend?

Re: We are making an offer and need advice ASAP....

---

Posted by DebMaher

Skew, I agree with what you posted, however, our experience (again, not RE expert) has been that the seller's agent is always motivated to mention the offer to all parties who have expressed interest so as to get the offer as high as possible.

---

Re: We are making an offer and need advice ASAP....

---

Posted by Dani00518

well do you think I am lessining my chances of getting the house if we go through my aunts friend?

---

Message edited 9/13/2004 10:06:48 PM.

Re: We are making an offer and need advice ASAP....

Well no, because you will usually be given the chance to counteroffer. It depends on how hot the market is and how many serious other buyers there are. These are things your broker should be able to help with. If not, then even if it is a friend, they are not really doing anything to earn the $$$$