A buyers agent?

Wow...it seems so advantageous in some respects (inside info on other bids and house value) - however, if the homeowner real estate fails to pay the agent - then you're responsible for doing so.

I know there are some negatives associated with getting a BB ... just wondering if anyone used one and how it went for you?

I'm using an exclusive buyer's agent - and I strongly recommend it.

It is listed in the home purchase contract who pays who; so as long as your home purchase contract is written properly, there is no dispute on how they are paid.

Edited to clarify.

Not necessarily. Usually there is already a stipulation in the listing that indicates a split in commission between they buyer & the seller.

Also, the & still comes out of the price of the home in most cases.


Gonnacatch...my buyer broker actually works the neighborhood you have been looking in. (he just helped me in Suffolk b/c I know him)

If you want his info, you can FM me.

We went through a lot of what you went through with bidding on multiple houses, and it was always to our disadvantage b/c in the end, if the house we were bidding on was not listed by our agent (before we had a buyer's broker) he could not further negotiate b/c he had to act in the interest of the seller, even though he 'worked' for us.

Once we signed on with our broker, we became privvy to a lot more information abotu the house and the deal itself, as our broker was now legally working in our interest.

ALSO, the home we are awaiting a signed contract on was a for sale by owner, which he brokered for us and it would not have been possible to have the representation if he were just an agent and not our broker.

Good Luck

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Posted by skew

i am confused, isn't a TRUE buyer's agent paid by the buyer?

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As said above, the commission is split between selling agent and buying agent.

Guess what - you pay the sellers agent too, like it or not. They up the price of the house by the amount for both the sellers agent and the buyers agent.

They dont say 'Hey my house is worth 400,000, and then I'm going to give my agent 2% so I will get 392,000' They raise the house price to 408,000 to cover all the agents. (Fake numbers, of course)

All that happens is that you give check to seller that covers everything, and they cut a separate check to their RE agent - guess where they are getting the money from? The check you just handed them...

The major problem with a buyer's agent is what happens if you bid on a house and somebody else bids the same amount.

If you are bidding against somebody that is using the seller's agent as a dual agent... guess who is going to win the bid on that house.

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Posted by DjPiLL

The major problem with a buyer's agent is what happens if you bid on a house and somebody else bids the same amount.

If you are bidding against somebody that is using the seller's agent as a dual agent... guess who is going to win the bid on that house.

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Yes, that is a risk you take when using a buyers agent. In my eyes, it's worth the risk. I may lose out on one particular house, but at least I know I won't be fleeced by a sellers agent on the next one!

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Posted by HearzBellz

Not necessarily. Usually there is already a stipulation in the listing that indicates a split in commission between they buyer & the seller.

Also, the & still comes out of the price of the home in most cases.


Gonnacatch...my buyer broker actually works the neighborhood you have been looking in. (he just helped me in Suffolk b/c I know him)

If you want his info, you can FM me.

We went through a lot of what you went through with bidding on multiple houses, and it was always to our disadvantage b/c in the end, if the house we were bidding on was not listed by our agent (before we had a buyer's broker) he could not further negotiate b/c he had to act in the interest of the seller, even though he 'worked' for us.

Once we signed on with our broker, we became privvy to a lot more information abotu the house and the deal itself, as our broker was now legally working in our interest.

ALSO, the home we are awaiting a signed contract on was a for sale by owner, which he brokered for us and it would not have been possible to have the representation if he were just an agent and not our broker.

Good Luck

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That's interesting...did you find a For Sale By Owner house yourself w/o the agent?
Because let's say you go to a FSBO home - bid on it - and win the bid - you have to pay your buyers agents even though you found the house yourself?

I guess in some ways, it's good because you know what other people are bidding and the agent can tell you that, representing you.

As a sellers agent, they can't do that and you might end up overbidding?

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Posted by BlazeSyth

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Posted by DjPiLL

The major problem with a buyer's agent is what happens if you bid on a house and somebody else bids the same amount.

If you are bidding against somebody that is using the seller's agent as a dual agent... guess who is going to win the bid on that house.

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Yes, that is a risk you take when using a buyers agent. In my eyes, it's worth the risk. I may lose out on one particular house, but at least I know I won't be fleeced by a sellers agent on the next one!

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What makes you think you will be any less fleeced with a buyer's agent? Come on.

They are both out to make money... and IMO will let little things slide in order to complete the sale.

And using an exclusive buyer's agent will make your bids look weaker to sellers agents that want full commission.

The only reason I can see to use a buyer's agent is if you agree to have some of that 3% or whatever the buyer's agent gets... kicked back and credited to you. Then its worth it.

Otherwise... unless you like working with one particular person... i really don't think its worth it.

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Posted by DjPiLL

What makes you think you will be any less fleeced with a buyer's agent? Come on.

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A salesperson is a salesperson. I dont trust any of them (insert flames here)

I dont trust the guy from PcRichards, the local insurance agent, car salesperson, anybody. I dont trust my buyers agent 100% either. I just feel that the buyers agent will have my best interest in mind 25% of the time; when a sellers agent will have my best interest in mind 10% of the time. I'd rather have 25% than 10% since this is my first time thru this process and need the general guidance, and would rather having other people making phone calls and following up on the process.

A purchase this large (or any purchase) needs to be researched thoroughly by yourself - that is when you know that you can feel comfortable.

I find it amazing about how people will just sign on the dotted line, pay for unexplained fees, and write checks handing them out without asking questions, etc. But hey - if thats what they want to do; thats their money!


JMO..

I am sorry.... but I just don't agree with having a buyer's agent. For all of you that feel comfortable having one... well thats fine.

All I want out of a RE agent is to have a very QUICK and SMOOTH closing (and in that order). Thats all I want.

Adding a second agent into the picture just adds one more party to the equation for things to get 'lost in conversation'.

A dual acting agent will get you the quickest closing 99% of the time over having two separate agents, simply cause everything has to proxy through them.


And I don't have to worry about anybody having my back 25% of the time, or 10% of the time. Frankly I don't want them to have my back at all. Just make sure the sale goes through. Thats my only request.

Everything else that I may get 'fleeced on'... like a bad house or something like that... well thats what inspections are for. Tough wording in a contract? Thats what your lawyer is for!

I will take the necessary to protect myself. I will not leave this duty up to a bogus, crooked, RE agent.

although not labeled one per say, i guess in a sense we DID use a buyers agent. we worked w/ a close friend of the family and she showed us several listings. we did not sign any paperwork that she was working on our behalf but in actuality, she was.

we saw homes that she had listed, as well as ones listed by her agency and then others listed by other agencies. as it turns out, i am the one that found the house that we are in contract for. there are dual listing agents and then our agent. it is not costing us anymore than the agreed upon price but all agents are going to spilt the commission.

as someone else mentioned, the BUYER does pay the agent, whether they are a buyers or a sellers. commision is a % price.

from my understanding (i could be wrong), a TRUE buyer's agent is paid by the buyer and the $$ paid is separate from the purchased price. not sure if it is a flat rate or a %.

DJ -

i am confused. are you advising that one deals directly w/ the listing agent and cut out the middleman? problem is, house hunting is VERY time consuming and an overwhleming process for many.

perhaps i am not fully understanding the definitition of a buyers agent but i would say that a good % of those house hunting are working w/ their own agent/s.


we should post a poll. not exactly sure had to name/word the poll but it would be interesting to view the results.

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Posted by skew

DJ -

i am confused. are you advising that one deals directly w/ the listing agent and cut out the middleman? problem is, house hunting is VERY time consuming and an overwhleming process for many.

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True you make a good point. Its not like if some broker comes up to me and says 'hey i have a GREAT property for you... let me show it'... its not like I am going to say NO. And if I do like the place... i'll proxy a bid through the agent.

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perhaps i am not fully understanding the definitition of a buyers agent but i would say that a good % of those house hunting are working w/ their own agent/s.

we should post a poll. not exactly sure had to name/word the poll but it would be interesting to view the results.

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I am sure a lot of people are using them. More than not. I tend to do things a little differently in life... so I wouldn't be surprised if I was in the minority.

I am just saying... that there a lot of people that will do their own research... see a property advertised... then immediately call their agent up to have their agent call the listing agent for a showing.

Thats a middleman at work. I would just call the listing agent directly and see it myself on my own.

Thats the difference and that particular scenario cuts out the middleman (for that showing).

Granted there is no right way to do things with this... everyone has their own preference.

My preference is... when I make an offer on a house... my goal is to make it stronger than your offer.

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Posted by DjPiLL


I am just saying... that there a lot of people that will do their own research... see a property advertised... then immediately call their agent up to have their agent call the listing agent for a showing.

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and that is EXACTLY what we did. we were in a sticky siutation as our agent is a VERY close family friend. we had been working w/ her for 6 months and even though i did the property, i couldn't (in good conscious) cut her out. even though it all worked out in the end, perhaps next time we will handle things differently.

i KNOW that the seller had been working w/ her agent for over a year and then found a property on her own. the agent was so aggrevated w/ the whole situation that listed the sellers house, she just wanted a quick sale w/o having to deal w/ all the legwork.

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Posted by DjPiLL

I am sure a lot of people are using them. More than not. I tend to do things a little differently in life... so I wouldn't be surprised if I was in the minority.

I am just saying... that there a lot of people that will do their own research... see a property advertised... then immediately call their agent up to have their agent call the listing agent for a showing.

Thats a middleman at work. I would just call the listing agent directly and see it myself on my own.

Thats the difference and that particular scenario cuts out the middleman (for that showing).

Granted there is no right way to do things with this... everyone has their own preference.

My preference is... when I make an offer on a house... my goal is to make it stronger than your offer.

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I was actually thinking about your response to this myself. If Skew hadn't asked you about this, I would have.

Anyway- You're not alone. We are doing this too. We have gotten to the point that we know our area well enough and do the research ourselves. I only want a realtor contacting me if they have an exclusive in my price range.

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Posted by thiadora

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Posted by DjPiLL

I am sure a lot of people are using them. More than not. I tend to do things a little differently in life... so I wouldn't be surprised if I was in the minority.

I am just saying... that there a lot of people that will do their own research... see a property advertised... then immediately call their agent up to have their agent call the listing agent for a showing.

Thats a middleman at work. I would just call the listing agent directly and see it myself on my own.

Thats the difference and that particular scenario cuts out the middleman (for that showing).

Granted there is no right way to do things with this... everyone has their own preference.

My preference is... when I make an offer on a house... my goal is to make it stronger than your offer.

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I was actually thinking about your response to this myself. If Skew hadn't asked you about this, I would have.

Anyway- You're not alone. We are doing this too. We have gotten to the point that we know our area well enough and do the research ourselves. I only want a realtor contacting me if they have an exclusive in my price range.

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i totally understand and agree w/ DJ's reasoning. however, being that we were not experienced w/ the whole house hunting/buying process we felt more at ease working w/ our agent. next time, we most likely will not use our own agent.