Thoughts on Buyer's Brokers?

Has anyone used a buyer's broker when buying their home? Was it really necessary or would you not do it again?

DH and I met with someone yesterday, but in all honesty I do not think I want to go through them. We've done so much research already, i wonder how useful they will be. DH wanted to get a better idea of negotiation and % off asking price as first offer, counter offers, etc. (because unlike seller's agents, you hire these people to be on YOUR side) and I agree, but the fact that you only go through them makes me a bit weary.

Plus, with this particular company, it sounds like we'd be paying towards her commission 9 times out of 10. The market is so good now for brokers, they really don't have to share their commission with anyone. So if we find a house we love and the seller's agent refuses to share with the BB, we have to fork over the $$$. With a FSBO, the fee is 4.5% That could easily be $15-20,000!!!

So what do you think - not worth it in today's market?

my thoughts are:

1. hopefully the seller's agent will not be so stingy...

2. without a buyers agent you don't have to do as much leg work on your own...

3. they might get wind of houses before they are put in the paper...


ETA:
4. the seller's agent wants the best price for the seller...they don't care about you

Yes, they probably would get info on new listings sooner than we would, but the same would happen if we networked (as we are now) with a few different realtors. It's funny how some houses they all mention, and a few are exclusives than only one knows....so it's good to get in with several.

It does get a bit hectic at work fielding calls from 4 realtors about houses every day, but at the same time I'm glad we have them all working for us!

I agree with the seller's agent wanting the best price for the seller, but they also care about their commission - the higher the sale price the higher their commission. However, if a buyer's broker came into the picture, the SA would have to split their overall share with the BA, which many don't want to do. Then, if that's the case, we'd need to fork over the BA's fee, or the balance of what they weren't able to negotiate.
Okay, my brain hurts now

keep in mind that as a broker for you in this situation they dont get as much as a commission on SOME homes

like a usually is 2%

and as a buyers broker is like 1-1.5 %
or they have to neg. there commission

so in the end they might still limit the amount of time spend with you and effort

for a 2%-2.5% ive seen 3%
a sellers broker
if they dont make their buyers happy they are not making the sellers happy
they will work alittle harder for that

THIS IS JUST MY OPINION
I AM NOT STARTING A DEBATE

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Posted by yabbobay

gina...can the SA ever not give part of the commission to the BA? under what circumstances does that occur?

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when an agent/broker lists a home
they usually collect 6% from the seller

the listing agent will then set their own % that they which to give to a SA or a BA

they usually give 2% to the SA who sold the home if it a more expensive home maybe 2.5% - 3%
I have also seen 1.5% given

but as BA its usually says neg.
meaning they will get VERY little what ever the 2 agents agree on

I usually put that or 1.5%

A BA is not common so I have never worked with really and I have never heard of not giving a commission.

I would want to give that agent who sold the listed home I have listed a commission for their work.

I would not show a home and sell it----
the listing collects lets say gets 10,000 and gives me nothing that not fair to anyone in ANY feild of work

agents dont usually offer it to buyers b/c they dont get as much. the time they put into it a buyer they will probably not get money due the amount of hours invested in showing homes etc.

if this is hard to understand let me know




I AM NOT STARTING A DEBATE
THIS IS MY EDUCATED THOUGHT OF IT


Basically what I am saying is I would treat the buyers the same.

Teri had stated she has to pay the agent 15-20000 at closing not sure if that includes tilte fees lawyer fees etc. ....

if it does then if you work with a SA you will pay that too and most likely get the same attention if not more.

if you need to pay 15-20000 plus closing costs
thats too much

so is my agent a BA? we told her the area that we liked and some condos that are up for sale...and she is showing us them...


I'm so confused!!

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Posted by yabbobay

so is my agent a BA? we told her the area that we liked and some condos that are up for sale...and she is showing us them...


I'm so confused!!

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what do you mean

I want to help you

you are in CA right ?

DH and I searched around the internet...and one site had the MLS for our area...and we made an appointment...


should we have called the sellers agent?

yes most likely you have the RE office and spoke to the agent who has listed the condo

a buyers broker just is a notifaction of the relationship between the buyer and the broker

you have not gotten to that point yet

every state is different

but most likly this agent/broker will go over that when you met him or her

let me know if you need more help

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Posted by yabbobay

DH and I searched around the internet...and one site had the MLS for our area...and we made an appointment...


should we have called the sellers agent?

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did you call the re office or the seller?

Thanks Casg - oh and by answering my questions your helping me, not starting a debate!

I had mentioned the $15K-20K that we'd have to front, if we found a house with a SA that would not budge on sharing their fee with the BA.

I'm not sure how often that actually happens, but I can see SA's being resistant to working with BA for this reason.

If it happened that the SA did not share, we'd have to pay the whole fee to the BA which could be 3%-4.5%

Erica - my guess is that woman you called is a SA....regardless of whether it's their house to show or they're bringing you to the house and working with the other SA, splitting the commission. Just understand that if this is the case, any conversation you have with him/her on $$ they are obligated to go back to teh seller and communicate this. That's why having a BB can be handy

I don't know about CA but when we looked here most of the SAs immediately had us sign a form that stated that they worked for the seller and were obligated to honor their best interests. I got the impression that such notification was mandatory, but I'm not a professional.

In other words, whoever you're dealing with should make it clear either way.

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Posted by Jenn P

I don't know about CA but when we looked here most of the SAs immediately had us sign a form that stated that they worked for the seller and were obligated to honor their best interests. I got the impression that such notification was mandatory, but I'm not a professional.

In other words, whoever you're dealing with should make it clear either way.

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yes, many RE agents do, but not all. We've seen countless houses throughout the years by who knows how many REAs, and we've only signed the form maybe 5-6 times. It's definitely not consistent, but they should make it very clear who they work for.

well I am pretty sure that this woman is not a SA...every place we look at she leaves a card with the stack of 20 there already...

should we go a different way?

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Posted by Jenn P

I don't know about CA but when we looked here most of the SAs immediately had us sign a form that stated that they worked for the seller and were obligated to honor their best interests. I got the impression that such notification was mandatory, but I'm not a professional.

In other words, whoever you're dealing with should make it clear either way.

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it is a law to present this form

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Posted by yabbobay

well I am pretty sure that this woman is not a SA...every place we look at she leaves a card with the stack of 20 there already...

should we go a different way?

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in NY all agents/brokers are SA's and BA's which you as the BUYER prefers them to be.

When an agent/broker goes into ANY home or business to show it to a buyer or even to just preview it is only right to disclose who they are and where they are from

just a police office walks to your window or your door and flashes their badge.

We just went through this and our agent told us we had to sign a disclosure making (her) the agent either a seller's agent or a buyer's agent. How she explained it to us:

1) Seller's agent - is working to get the best price for the seller, therefore if you happen to mention that you can go as high $400,000, but place a bid for $375,000 - the seller's agent can disclose to the seller that you may go higher if they counter offer.

2) Buyer's agent - they work for the buyer. The agent has to disclose anything they know about the property, and can not disclose your 'top offer'

She told us that for her - there is no difference - she didn't mention commissions - and she told there is no reason for her not to be buyers agent - she said the only downside can be that seller's sometimes rather deal with a sellers agent (but rarely it makes a difference)...but it was our choice -

We went with the buyers agent.

I know that's not very technical - please let me know if I've been told anything incorrect

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Posted by Oct04Bride

We just went through this and our agent told us we had to sign a disclosure making (her) the agent either a seller's agent or a buyer's agent. How she explained it to us:

1) Seller's agent - is working to get the best price for the seller, therefore if you happen to mention that you can go as high $400,000, but place a bid for $375,000 - the seller's agent can disclose to the seller that you may go higher if they counter offer.

2) Buyer's agent - they work for the buyer. The agent has to disclose anything they know about the property, and can not disclose your 'top offer'

She told us that for her - there is no difference - she didn't mention commissions - and she told there is no reason for her not to be buyers agent - she said the only downside can be that seller's sometimes rather deal with a sellers agent (but rarely it makes a difference)...but it was our choice -

We went with the buyers agent.

I know that's not very technical - please let me know if I've been told anything incorrect

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Have you found/bought a house yet? if so, are you responsible for paying any commission to her?