Real Estate Agent Working for both Seller and Buyer?. Please advise
#1
Posted 15 June 2008 - 10:45 AM
#2
Posted 15 June 2008 - 10:50 AM
WORKS WITH. YES!
That's what brokers are for.
That broker should be getting 3% at most IMO. Brokers negotiate with the Seller's Agent to modify the comm. Seller will usually set the overall comm rate. BUYER can pretty much accept or not accept in the closing contract.
I say keep your information and purchasing points partial to yourself or your party.
www.iheartfw.com
#3
Posted 15 June 2008 - 10:54 AM
Thanks
#4
Posted 15 June 2008 - 11:27 AM
YOU CAN work INDEPENDENTLY with the SELLER's agent. The SELLER determines if any agent at all is needed in a transaction. You can always have your own agent or a broker, unless determined otherwise. That agent is in the equation to pretty much GET PAID, so in a sense that agent is primarily working for THE SELLER or THE CONTRACT.
They (Broker or Buyer's agent) can do the work for you, you just tell them what EXACTLY you want in a prospect and of course in the transaction. Then you sign it or nay it.
The preffered is NO AGENT, but in most cases that does not occur. Mainly because SELLER'S prefer to "agent up" on their transaction and have little time to negotiate with any PROSPECTIVE BUYERS. If you happen to know the owner then perhaps you, as a SERIOUS BUYER, could convince that individual or party to otherwise expire the agents services. A good sign (more often than not) that a SELLER NEEDS HELP in moving their product, is when an agent is present. So you may have a discount window (10-15%) available to bargain with, doesn't hurt in proposing that offer to the agent.
Hope that helps.
www.iheartfw.com
#5
Posted 15 June 2008 - 06:23 PM
#6
Posted 15 June 2008 - 07:49 PM
Also, can he legally represent both side?. I was told that I need to sign some paperwork if I have him represent me as my agent. Yes, I'm a newbie when it comes to real estate. I just assume that I would go find myself an agent that will help me find a home, but I saw a condo listing and was able to get a showing with the broker who is helping the seller sell the condo.
Can I just negotiate with him and possibly save myself 3%?
#7
Posted 15 June 2008 - 09:42 PM
When the seller signed the contract with the broker it specifies what the commission will be (typically 6%) and it is paid by the seller so there is nothing for you to negotiate there, 6% is being paid by the seller at closing and either one agent gets the whole 6% or its split between the buyers and sellers agent. If you are a newbie then you need an agent to represent you...it costs you nothing because the seller is paying the commission.
You can have one agent (or broker) represent both the buyer and seller, it's called dual representation but it's not recommended, however if you insist you can sign the paperwork you mentioned. Think of it this way - would you want your wifes attorney representing you in the divorce (even if he said he was going to be fair)? You need someone to represent you, they can take you to other listings, be there to bounce things off of and basically hold your hand. I suggest finding an agent that has experience in downtown condos, they would be able to help you with a realistic offer to make. Your agent brings the offer to the sellers agent and the seller either accepts, denies or counters the offer. The agent makes sure everything goes smoothly, I used to sell my own investment property until recently, trust me, the 5% I paid for the hell they went thru (and saved me from) was well worth it. That being said, there are good and not so good agents out there, make sure you are comfortable with them before you sign a contract. Remember, your agent works for you, the buyers agent works for them but both are paid with the 6% commission and that is paid by the seller.
#8
Posted 15 June 2008 - 09:45 PM
The seller pays the commission, not the buyer. Also, they have already signed paperwork that says what the commission will be 4 or 5 or 6%. I can't see any downside to getting your own agent, they willl share the commission but, you will be much better represented by your own agent rather than the sellers.
Edit Dr Quest and I seem to have been thiking the same thing at the same time.
#9
Posted 15 June 2008 - 10:57 PM
#10
Posted 16 June 2008 - 07:20 AM
Your own agent is the best way to go and costs you nothing, why take the chance that the sellers agent would take pity on you. If they are telling you they will get the price down if you go with them they are already being dishonest, I would run the other way.
This isn't a car deal, you are buying something from a person that only has one for sale. You have to know your price and not be afraid to walk away if it isn't right. It is an emotional process for both sides and you need your own person to represent you, not the other sides.
#11
Posted 16 June 2008 - 09:16 AM
#12
Posted 16 June 2008 - 11:43 AM
#13
Posted 16 June 2008 - 04:19 PM
Bon chance!
www.iheartfw.com
#14
Posted 16 June 2008 - 09:21 PM
Buyer's Corner
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#15
Posted 29 June 2008 - 06:01 PM
Of course, if you want to wheel and deal and negotiate the lowest price... then dual agency is definitely not the route to go. Because a dual agent can't fairly and honestly negotiate that kind of situation.
But there are cases where it works quite well. Often when there are priorities other than money. Which is the case quite often in real estate transactions. For instance, a seller may have a goal to sell immediately for a reasonable price. And the listing agent may have a buyer who has been extremely interested in getting into that neighborhood, and is happy to pay a reasonable price to get a home right away. In that case having one agent overseeing the entire transaction may be preferable to both buyer and seller. Because the goal is not to negotiate the other party to pieces... but to make sure all the i's are dotted and t's are crossed quickly, professionally, and with the least likelihood that the transaction will fall apart. An experienced agent can handle that kind of deal, anticipate problems and head them off, coordinate with all the parties... inspectors, appraisers, loan and title companies, etc., and basically make sure everything is on course. The seller has much less worry about last minute surprises. And anyone who's done more than a handful of real estate transactions understands how often we're met with those last minute surprises that shouldn't have happened if everyone was on the ball.
But in the OP's case... it seems the advice to hire an agent was probably well-founded. Hope it all worked out well!
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