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April 28, 2009
FSBO / buyer's broker
I'm a prospective first-time buyer and after months of going to open houses I have found a FSBO condo I'm interested in. I do not have a buyer's broker though I have discussed with one agent the possibility of signing on with him. My questions: 1) do I dare try to complete a transaction without a broker on either side? Bear in mind I know very little about the process, though I'm willing to put in some time. 2) If I do use a broker, is his commission 3%? 3) Who usually pays that commission? My understanding is that it is the seller's responsibility but the seller might refuse to pay it as part of the negotiation process.
Any insight much appreciated.
Comments
The broker only helps you find the place (or sell the place). Once you've found what you want, a broker is hardly worth the expense. You do need a lawyer, though.
Posted by: serpentor at April 28, 2009 2:18 PM
Don't worry about a broker, get a good RE attorney and you'll be all set.
Besides, a broker commission is typically 6% (3 to the agency 3 to the broker, and if the seller is doing FSBO they are doing it to avoid the broker fee so if you got a broker involved I'd imagine the broker fee would be your responsibility.
Forget the broker, get a good lawyer.
Posted by: christopher at April 28, 2009 2:58 PM
seller pays the broker's fee. He wants to get rid of the place therefor he pays.
Yes, the lawyer is your next step, call few of them in the neighberhood and pick the cheapest that specializes in condos. Your fee should be more than 1500 for the lawyer and closing should exceed 5000
Posted by: karo25 at April 28, 2009 3:07 PM
Consider yourself lucky. All either one of you need is a lawyer.
Posted by: mopar at April 28, 2009 3:18 PM
LAWYER at this point.
Posted by: Adam Dahill at April 28, 2009 3:21 PM
If it is FSBO, the owner does not want to pay a broker fee at all. Some owners are open to a broker fee if approached by a broker with an interested client (it would usually be 2.5% if seller agrees, like a cobroke). A broker would call an owner first and make sure they are willing to pay the fee. As to everyone's advice about getting a lawyer, a lawyer does not negotiate for you. A lawyer usually comes in after you have an accepted offer. However, you could hire a lawyer to negotiate for you by paying an hourly rate rather than the usual flat fee for a real estate closing. You could always try it on your own and then you will definately find out if you need assistance with the process. Good luck!
Posted by: broker at April 28, 2009 3:32 PM
Its a FSBO because the seller doesn't have to pay any commissions. All you need is a lawyer to review the contract and close. make sure you get a real estate lawyer, not just any old lawyer.
Posted by: daveinbedstuy at April 28, 2009 4:00 PM
You don't need a broker. I sold an apartment without using a broker. The buyer simply negotiated directly with us. There were no misunderstandings, no drama of any sort. Both parties have remained on good terms more than a year after the closing. All you need is an attorney.
Posted by: dt at April 28, 2009 6:04 PM
Amen to all of the above. The broker will do you no good at this point and will cost you way more than they're worth.
Posted by: bunkerlabs at April 28, 2009 7:46 PM
Cut out the middleman! They are all parasites.
Posted by: hannible at April 29, 2009 5:57 AM
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