More Leverage with No RE Agent?
Friends, I am pondering whether having a BUYER’S real-estate agent is really necessary in the information age. #1 – You can essentially find all the listings on the internet. #2 – If the seller/seller’s agent did not have to pay the 3% commission to the buyer’s agent, would that give you more leverage in a…
Friends,
I am pondering whether having a BUYER’S real-estate agent is really necessary in the information age.
#1 – You can essentially find all the listings on the internet.
#2 – If the seller/seller’s agent did not have to pay the 3% commission to the buyer’s agent, would that give you more leverage in a negotiation?
Please let me know.
Thanks
Have been looking for a coop for over a year without a “buyers’ broker”. To date, I feel that not having a broker has given us more freedom and less hassle. We often have more information about an apartment than the seller’s broker after doing research on line. We have found that real estate brokers are adamant about holding on to the entire commission. The buyer is asked to up the bid, the seller to lower the price. A realtor will protect the commission at all cost. If buyers are successful at diminishing a sale price by cutting in to the commission, than we will be cutting out half their business. And it is their business that takes precedence over everything.
the way to save the money is to pick up a realtor’s license and represent yourself. test is not much harder than a driver’s license test. or at any rate, realtors drive by their rules like taxi drivers drive by theirs, if you catch my (lane) drift.
1) For the most part – yes.
2) For the most part – no, because broker agreements typically have the commission split built into their contracts. And since the listing broker has legal and fiduciary responsibility to submit ALL offers to the seller, it would be not only unethical but illegal for the listing agent to withhold an offer to avoid a commission split out of self-interest. Therefore since the seller will most likely pay the same commission whether the deal is co-broked or not, there is generally no leverage or advantage for a direct deal over a co-broke. Negotiating with a buyers agent (techically referred to as a “Selling Agent”) can be actually be attractive to many sellers/sellers agents, since good buyers agents act as facilitators and move deals forward (bidding strategies, co-op packages, guidance, advice and encouragement).
As a broker the answer to your questions:
1) For the most part – yes.
2) For the most part – no.