JERSEY CITY LIST - Re: Exclusive Buyer Agreement? [Real Estate]

Re: Exclusive Buyer Agreement?

#33

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Quote:

plnj wrote:
..
You are a complete #OOPS# moron and are derailing an informational thread with your ass backwards theories. Not sure why the mods have not removed you yet.

My contribution to this thread was to establish that all commissions are negotiable. The OP now has some data from both redfin.com and the other sites above that they can use as a baseline before signing any agreement. That might save them $5-12k of real money on an average downtown purchase.

It looks like regulation and technology like redfin are already disrupting the NJ real estate business to the benefit of the end consumer. Nothing moronic about that.

Posted on: 2015/12/7 12:32

Re: Exclusive Buyer Agreement?

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Asif wrote:

For a slightly different approach to real estate buying an selling try REDFIN.

http://press.redfin.com/phoenix.zhtml?c=252734&p=irol-about

Might be the winner if you need a full service broker as a buyer or seller - and they cover NJ. The slider on their main page reveals how much you can save:

https://www.redfin.com/

Posted on: 2015/12/6 18:52

Asif

Re: Exclusive Buyer Agreement?

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For a slightly different approach to real estate buying an selling try REDFIN.

http://press.redfin.com/phoenix.zhtml?c=252734&p=irol-about

Posted on: 2015/12/6 14:28

Re: Exclusive Buyer Agreement?

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Quote:

PDubs wrote:
...
The commissions are fees paid by the seller. No one forces a seller to pay x% to sell their home. Sellers should negotiate fees to sell their property. Or just do it themselves. In most cases, sellers want to sell their home as quickly as possible and they'll pay accordingly. Sales tax? The buyer pays nothing to brokers at closing. A tax would be something like mansion tax, which the buyer is responsible for at closing. I'm at a loss that you don't understand this.
...

Walmart may collect sales tax and pay uncle sam, but it's coming out of the buyer's pocket. No different here, though contracts are structured differently. The point isn't about the contracts - it's that the buyer has leverage. As Vindication15 pointed out, nothing to stop the buyer negotiating directly with the seller or seller's broker themselves.

Posted on: 2015/12/6 13:48

iGreg

Re: Exclusive Buyer Agreement?

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Use real estate agents the same way you use toilet paper, once all shitted up flush em down the toilet. Have them show you enough places and when you're ready to make a play - contact the listing agent directly and negotiate the numbers down with the seller who will in turn cut the bitches commission.

Don't sign any bullshit exclusive agreement.

Quote:

PDubs wrote:
Quote:

vindication15 wrote:
Here is a time tested method. Look at the MLS, call up the listing broker and ask whether they prefer you work with them to buy a home that they are selling or whether it would be prudent to bring in an agent yourself.

100% of listing agents will say, "oh no, I can be your agent too" - even our resident realtor who is posting on this forum. Money talks...

What does that even mean? Did you have a point? Of course they want to be your representation, but that doesn't mean you should have them represent you.

I imagine some of you posters are like a guy I spoke with this past week. He said he's been looking for a "deal" downtown for over a year. When I told him if he just paid market price last year he'd be up 20% (actually 100% on the down payment), he was literally speechless. Money does not always talk.

Posted on: 2015/12/6 1:14

Re: Exclusive Buyer Agreement?

#28

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Quote:

vindication15 wrote:
Here is a time tested method. Look at the MLS, call up the listing broker and ask whether they prefer you work with them to buy a home that they are selling or whether it would be prudent to bring in an agent yourself.

100% of listing agents will say, "oh no, I can be your agent too" - even our resident realtor who is posting on this forum. Money talks...

What does that even mean? Did you have a point? Of course they want to be your representation, but that doesn't mean you should have them represent you.

I imagine some of you posters are like a guy I spoke with this past week. He said he's been looking for a "deal" downtown for over a year. When I told him if he just paid market price last year he'd be up 20% (actually 100% on the down payment), he was literally speechless. Money does not always talk.

Posted on: 2015/12/5 23:02

plnj

Re: Exclusive Buyer Agreement?

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Quote:

dtjcview wrote:
Quote:

PDubs wrote:
..
Please. You're playing semantics. It doesn't come out of the buyers pocket. The seller cuts the checks at closing! How is that a shell game? You think a buyer will pay $50k less for not using an agent? The fees are determined by whatever the seller agrees to in the listing agreement. They will pay x% whether or not the buyer uses an agent or not.

...

You are obviously in the game yourself and out to con people with the shell game you are playing.

If 6% of sale price goes to the brokers - who pays? THE MONEY COMES OUT OF THE BUYERS POCKET. PERIOD. Argue all you like about who's obligated to pay - it's no different to a sales tax.

Keep peddling your lies, then explain why you can get rebates of up to 60% in NJ? That's $12k back on $20k buyers agent fees. Realtors are going to be in the cross-hairs of the next round of consumer protection regulations. You guys are sharks raping the consumers - and your day of reckoning is due ;)

http://www.2percentusa.com/p_10929-Bu ... ors______list_from_2.html

http://www.thousandsbackatclosing.com/nj-home-buyer-rebate-faq/

You are a complete #OOPS# moron and are derailing an informational thread with your ass backwards theories. Not sure why the mods have not removed you yet.

Posted on: 2015/12/4 14:35

Re: Exclusive Buyer Agreement?

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Here is a time tested method. Look at the MLS, call up the listing broker and ask whether they prefer you work with them to buy a home that they are selling or whether it would be prudent to bring in an agent yourself.

100% of listing agents will say, "oh no, I can be your agent too" - even our resident realtor who is posting on this forum. Money talks...

Posted on: 2015/12/4 7:33

Re: Exclusive Buyer Agreement?

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Quote:

PDubs wrote:
Quote:

vindication15 wrote:
Quote:

chungang wrote:
As an investor in properties throughout the US, I would ALWAYS recommend you get a buyer's agent and here is why:

The Seller's Agent ONLY represents the Seller. If he/she deals directly with a buyer without an agent, he/she is now a DUAL AGENT and must disclose to the buyer he/she is a Dual Agent. What does it mean as a dual agent? This means that he/she cannot advise on negotiating ANYTHING for the buyer. Ultimately the sellers agent duty is only to the SELLER, but he/she must treat the buyer fairly and still disclose information REQUIRED BY LAW.

If you have a buyer's agent, you now have someone who can help negotiate for you. If they hear from other agents that the seller is distressed, is willing to take a lower price, or any other information that can affect the price, THEY CAN share it with you to help negotiate. Again, the seller's agent can only share information he/she is REQUIRED to disclose by law. Plus, a buyer's agent will know what a property SHOULD be priced at according to the market, not based on some arbitrary price that most sellers force agents to list at.

As far as commissions go, you have NO ABILITY to negotiate a lower commission from the sale of the home as a buyer. Actually, neither a sellers agent or a buyers agent can kick you back any money from a transaction because it would be a violation of Federal and State Law. The listing contract is between the seller and the seller's agent and can only be modified by mutual consent. Only if you hold a real estate license from any state can you ask for a referral fee. I hold one in another state for just that reason.

My recommendation is definitely GET A BUYERS AGENT. You DON'T have to sign an exclusive unless you're very comfortable with the agent and they're working really hard to find you the right place. Just remember that agents are only paid on commission, so all that time they spend taking you around to properties, doing research, etc. is UNPAID unless you contract through them.

A smart agent will ask as soon as possible if you are working with another agent. That way each of you don't waste each other's time.

thanks REALTOR. Guess who realtors - buying and selling - represent most often and have a loyalty to more so than anyone else? THEMSELVES. Guess what the goal of a realtor is - to sell homes. Not to sell the home of your dreams. Guess what happens when the deal closes and you are not happy with the home you bought? The realtor still gets to keep his or her commission.

A realtor is a glorified door opener and chauffeur. Can you name one type of information that as a home buyer - you don't have access to that realtors do?

Price comps - Available
Listings - Available
Neighborhood crime stats - Available
Restaurants in the area - Available
Building & home history - Available

Now if you want a person to pressure you to buy a home so they can make 3% as a buyer's agent then go right ahead. But getting all the info you need is readily available. PLUS, your realtor is not required to give you all the above info that I mentioned. You can ask and your realtor can pick and choose that info. AGAIN, a realtor's main goal is to sell homes and whether you like it or dislike it afterwards, the realtor still gets paid.

This is why being an informed buyer using the sellers agent works. I'll give a concrete example.

Home is listed for 100,000. Seller's agent gets 3% commission when split or full 6% if they represent the seller and buyer.

If they represent you (buyer) and sell the home at 95k, they get 5700. OR you can bring in a realtor and they sell at 100k and they get 3k.

The realtor selling the home earns more money convincing the homeowner to sell at 95k than at 100k. You (the buyer) benefits.

Simple math. Done.
]

I'm a realtor. I don't see why someone would go direct to the listing agent. Although dual agency is common, how can one person have the best interest of two parties in mind? It's inherently a conflict.

Your logic is flawed and many people assume that this is the way it works. A listing agent isn't going to "sell" a lower offer; although they're not supposed to, they may tell you where the offer needs to be in order to win the bid. At the end of the day, you're going to pay fair market for the property. What does happen sometimes is that the listing agent will take a lower percentage if they represent both parties. Thats almost always a 1% discount to the seller.

Working with a *good* buyers agent definitely has it's benefits. I work in a large office downtown and I have access to many listings before they hit the market. Since it's become such a sellers market, more and more deals are getting done off market. Additionally, most properties that hit the market have multiple offers within days; there are many ways to make an offer more attractive - it's not just purchase price that a seller is looking for (although that is obviously at the top of the list). A good agent will help you navigate that process.

It's not like YOU are paying the agent as a buyer, so why not take advantage of their dedication and market knowledge?

Interesting you used the word flawed and not incorrect. Everything I've said is absolutely true. Realtors get paid on selling homes, not selling at market price, not selling an ideal home, not selling the dream home.

If a realtor convinces a seller to sell below market price, does the realtor still get the commission? The answer is yes and you know this.

An uninformed seller (one that trusts the realtor) really doesn't know what fair market price is. What we are comparing is a 0% commission (not selling a home) to a full (many times 6%) or half of a commission (3%).

You have a direct feed to the mind of sellers before they decide to sell their home and list on the MLS (which again is public). Similar to how stock brokers have industry knowledge about when a stock will rise in price and go down in price? You must be a millionaire. The "process" of buying a home is not brain surgery. You do not need a buying agent to buy a home. It's like needing an agent to buy a car.

I do agree that selling is rather complicated and time consuming (made this way by the realtor lobby) so this is where having a selling agent makes sense (as long as you make the decisions, not the realtor).

" there are many ways to make an offer more attractive"
Here is a comprehensive list of ways to make yourself more attractive to a seller (given to all of you commission free!):

1) Have good credit (higher = better)
2) Offer larger down payment
3) Offer more cash
4) Don't be an a*hole during the home inspection by asking the seller to repaint walls
5) Get out of attorney review
6) Sign contract prepared to you by sellers agent

You need a buyer's agent if
1) You need a chauffeur and no one that is a family/friend is available

2) You have trouble using GOOGLE

Posted on: 2015/12/4 7:27

Re: Exclusive Buyer Agreement?

#24

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Quote:

dtjcview wrote:
Quote:

PDubs wrote:
..
Please. You're playing semantics. It doesn't come out of the buyers pocket. The seller cuts the checks at closing! How is that a shell game? You think a buyer will pay $50k less for not using an agent? The fees are determined by whatever the seller agrees to in the listing agreement. They will pay x% whether or not the buyer uses an agent or not.

...

You are obviously in the game yourself and out to con people with the shell game you are playing.

If 6% of sale price goes to the brokers - who pays? THE MONEY COMES OUT OF THE BUYERS POCKET. PERIOD. Argue all you like about who's obligated to pay - it's no different to a sales tax.

Keep peddling your lies, then explain why you can get rebates of up to 60% in NJ? That's $12k back on $20k buyers agent fees. Realtors are going to be in the cross-hairs of the next round of consumer protection regulations. You guys are sharks raping the consumers - and your day of reckoning is due ;)

http://www.2percentusa.com/p_10929-Bu ... ors______list_from_2.html

http://www.thousandsbackatclosing.com/nj-home-buyer-rebate-faq/

The commissions are fees paid by the seller. No one forces a seller to pay x% to sell their home. Sellers should negotiate fees to sell their property. Or just do it themselves. In most cases, sellers want to sell their home as quickly as possible and they'll pay accordingly. Sales tax? The buyer pays nothing to brokers at closing. A tax would be something like mansion tax, which the buyer is responsible for at closing. I'm at a loss that you don't understand this.

Buyers rebate? How did Foxtons work out? Ever hear "you get what you pay for"? Even on their site is says the rebate offers reduced service. Verbatim: "The buyer will be performing some functions typically handled by real estate agents as well as their own due diligence". So you're basically picking up a second job. Enjoy.

You think a buyers agent has it easy? Do you know how many people I'll show properties to and they'll never buy anything? There is no easy money working in real estate. If it was easy, 70% of agents wouldn't quit within a year.

Posted on: 2015/12/4 6:50

Re: Exclusive Buyer Agreement?

#23

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Quote:

PDubs wrote:
..
Please. You're playing semantics. It doesn't come out of the buyers pocket. The seller cuts the checks at closing! How is that a shell game? You think a buyer will pay $50k less for not using an agent? The fees are determined by whatever the seller agrees to in the listing agreement. They will pay x% whether or not the buyer uses an agent or not.

...

You are obviously in the game yourself and out to con people with the shell game you are playing.

If 6% of sale price goes to the brokers - who pays? THE MONEY COMES OUT OF THE BUYERS POCKET. PERIOD. Argue all you like about who's obligated to pay - it's no different to a sales tax.

Keep peddling your lies, then explain why you can get rebates of up to 60% in NJ? That's $12k back on $20k buyers agent fees. Realtors are going to be in the cross-hairs of the next round of consumer protection regulations. You guys are sharks raping the consumers - and your day of reckoning is due ;)

http://www.2percentusa.com/p_10929-Bu ... ors______list_from_2.html

http://www.thousandsbackatclosing.com/nj-home-buyer-rebate-faq/

Posted on: 2015/12/4 5:32

Edited by dtjcview on 2015/12/4 5:49:13

Re: Exclusive Buyer Agreement?

#22

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Quote:

dtjcview wrote:
Let me put this in perspective for potential buyers,

On a $1m property - 6% is $60,000 dollars. That $60k comes out of the buyers pocket. Realtors claim the sellers pay - but that's simply a shell game.

As a buyer - you are quite simply getting raped by agents.

Do it yourself as Vindication15 proposed- or negotiate a better price.

Please. You're playing semantics. It doesn't come out of the buyers pocket. The seller cuts the checks at closing! How is that a shell game? You think a buyer will pay $50k less for not using an agent? The fees are determined by whatever the seller agrees to in the listing agreement. They will pay x% whether or not the buyer uses an agent or not.

Blame the seller for doing a poor job in negotiating the listing fees or not doing FSBO, because in this market you really don't need a broker to sell a condo. Most sellers do, because they don't have the time or the inclination to tackle that by themselves. They will get more for their property if it's marketed with a broker and the only thing a seller cares about is their net profit.

That said, even if you do FSBO, you'd be crazy not to pay out a buyers brokers commission because that's where the buyers will come from. It's simple supply and demand. You will get less for your property if you don't cooperate with buyer's brokers.

Feel free to not use a buyers agent. Most of the buyers I work with are coming from Brooklyn and NYC - a knowledgeable agent saves them TIME, which it seems is the one thing people don't have enough of (money definitely isn't the problem).

Posted on: 2015/12/4 4:08

Re: Exclusive Buyer Agreement?

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Let me put this in perspective for potential buyers,

On a $1m property - 6% is $60,000 dollars. For that $60k - RE brokers do little more than they do for a $100k/$6k commission property. RE Brokers claim the sellers pay - but that's simply a shell game. As a buyer - you are quite simply getting raped by these RE brokers/agents. AS A BUYER - YOU PAY.

Do it yourself as Vindication15 proposed- or negotiate a better price.

Posted on: 2015/12/4 3:24

Re: Exclusive Buyer Agreement?

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Quote:

PDubs wrote:
Quote:

vindication15 wrote:
Quote:

chungang wrote:
As an investor in properties throughout the US, I would ALWAYS recommend you get a buyer's agent and here is why:

The Seller's Agent ONLY represents the Seller. If he/she deals directly with a buyer without an agent, he/she is now a DUAL AGENT and must disclose to the buyer he/she is a Dual Agent. What does it mean as a dual agent? This means that he/she cannot advise on negotiating ANYTHING for the buyer. Ultimately the sellers agent duty is only to the SELLER, but he/she must treat the buyer fairly and still disclose information REQUIRED BY LAW.

If you have a buyer's agent, you now have someone who can help negotiate for you. If they hear from other agents that the seller is distressed, is willing to take a lower price, or any other information that can affect the price, THEY CAN share it with you to help negotiate. Again, the seller's agent can only share information he/she is REQUIRED to disclose by law. Plus, a buyer's agent will know what a property SHOULD be priced at according to the market, not based on some arbitrary price that most sellers force agents to list at.

As far as commissions go, you have NO ABILITY to negotiate a lower commission from the sale of the home as a buyer. Actually, neither a sellers agent or a buyers agent can kick you back any money from a transaction because it would be a violation of Federal and State Law. The listing contract is between the seller and the seller's agent and can only be modified by mutual consent. Only if you hold a real estate license from any state can you ask for a referral fee. I hold one in another state for just that reason.

My recommendation is definitely GET A BUYERS AGENT. You DON'T have to sign an exclusive unless you're very comfortable with the agent and they're working really hard to find you the right place. Just remember that agents are only paid on commission, so all that time they spend taking you around to properties, doing research, etc. is UNPAID unless you contract through them.

A smart agent will ask as soon as possible if you are working with another agent. That way each of you don't waste each other's time.

thanks REALTOR. Guess who realtors - buying and selling - represent most often and have a loyalty to more so than anyone else? THEMSELVES. Guess what the goal of a realtor is - to sell homes. Not to sell the home of your dreams. Guess what happens when the deal closes and you are not happy with the home you bought? The realtor still gets to keep his or her commission.

A realtor is a glorified door opener and chauffeur. Can you name one type of information that as a home buyer - you don't have access to that realtors do?

Price comps - Available
Listings - Available
Neighborhood crime stats - Available
Restaurants in the area - Available
Building & home history - Available

Now if you want a person to pressure you to buy a home so they can make 3% as a buyer's agent then go right ahead. But getting all the info you need is readily available. PLUS, your realtor is not required to give you all the above info that I mentioned. You can ask and your realtor can pick and choose that info. AGAIN, a realtor's main goal is to sell homes and whether you like it or dislike it afterwards, the realtor still gets paid.

This is why being an informed buyer using the sellers agent works. I'll give a concrete example.

Home is listed for 100,000. Seller's agent gets 3% commission when split or full 6% if they represent the seller and buyer.

If they represent you (buyer) and sell the home at 95k, they get 5700. OR you can bring in a realtor and they sell at 100k and they get 3k.

The realtor selling the home earns more money convincing the homeowner to sell at 95k than at 100k. You (the buyer) benefits.

Simple math. Done.
]

I'm a realtor. I don't see why someone would go direct to the listing agent. Although dual agency is common, how can one person have the best interest of two parties in mind? It's inherently a conflict.

Your logic is flawed and many people assume that this is the way it works. A listing agent isn't going to "sell" a lower offer; although they're not supposed to, they may tell you where the offer needs to be in order to win the bid. At the end of the day, you're going to pay fair market for the property. What does happen sometimes is that the listing agent will take a lower percentage if they represent both parties. Thats almost always a 1% discount to the seller.

Working with a *good* buyers agent definitely has it's benefits. I work in a large office downtown and I have access to many listings before they hit the market. Since it's become such a sellers market, more and more deals are getting done off market. Additionally, most properties that hit the market have multiple offers within days; there are many ways to make an offer more attractive - it's not just purchase price that a seller is looking for (although that is obviously at the top of the list). A good agent will help you navigate that process.

It's not like YOU are paying the agent as a buyer, so why not take advantage of their dedication and market knowledge?

6% is an outrageous amount to pay on any transaction. And buyer pays that. Stop being a tool in claiming otherwise.

Posted on: 2015/12/4 3:14

Re: Exclusive Buyer Agreement?

#19

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Quote:

vindication15 wrote:
Quote:

chungang wrote:
As an investor in properties throughout the US, I would ALWAYS recommend you get a buyer's agent and here is why:

The Seller's Agent ONLY represents the Seller. If he/she deals directly with a buyer without an agent, he/she is now a DUAL AGENT and must disclose to the buyer he/she is a Dual Agent. What does it mean as a dual agent? This means that he/she cannot advise on negotiating ANYTHING for the buyer. Ultimately the sellers agent duty is only to the SELLER, but he/she must treat the buyer fairly and still disclose information REQUIRED BY LAW.

If you have a buyer's agent, you now have someone who can help negotiate for you. If they hear from other agents that the seller is distressed, is willing to take a lower price, or any other information that can affect the price, THEY CAN share it with you to help negotiate. Again, the seller's agent can only share information he/she is REQUIRED to disclose by law. Plus, a buyer's agent will know what a property SHOULD be priced at according to the market, not based on some arbitrary price that most sellers force agents to list at.

As far as commissions go, you have NO ABILITY to negotiate a lower commission from the sale of the home as a buyer. Actually, neither a sellers agent or a buyers agent can kick you back any money from a transaction because it would be a violation of Federal and State Law. The listing contract is between the seller and the seller's agent and can only be modified by mutual consent. Only if you hold a real estate license from any state can you ask for a referral fee. I hold one in another state for just that reason.

My recommendation is definitely GET A BUYERS AGENT. You DON'T have to sign an exclusive unless you're very comfortable with the agent and they're working really hard to find you the right place. Just remember that agents are only paid on commission, so all that time they spend taking you around to properties, doing research, etc. is UNPAID unless you contract through them.

A smart agent will ask as soon as possible if you are working with another agent. That way each of you don't waste each other's time.

thanks REALTOR. Guess who realtors - buying and selling - represent most often and have a loyalty to more so than anyone else? THEMSELVES. Guess what the goal of a realtor is - to sell homes. Not to sell the home of your dreams. Guess what happens when the deal closes and you are not happy with the home you bought? The realtor still gets to keep his or her commission.

A realtor is a glorified door opener and chauffeur. Can you name one type of information that as a home buyer - you don't have access to that realtors do?

Price comps - Available
Listings - Available
Neighborhood crime stats - Available
Restaurants in the area - Available
Building & home history - Available

Now if you want a person to pressure you to buy a home so they can make 3% as a buyer's agent then go right ahead. But getting all the info you need is readily available. PLUS, your realtor is not required to give you all the above info that I mentioned. You can ask and your realtor can pick and choose that info. AGAIN, a realtor's main goal is to sell homes and whether you like it or dislike it afterwards, the realtor still gets paid.

This is why being an informed buyer using the sellers agent works. I'll give a concrete example.

Home is listed for 100,000. Seller's agent gets 3% commission when split or full 6% if they represent the seller and buyer.

If they represent you (buyer) and sell the home at 95k, they get 5700. OR you can bring in a realtor and they sell at 100k and they get 3k.

The realtor selling the home earns more money convincing the homeowner to sell at 95k than at 100k. You (the buyer) benefits.

Simple math. Done.

]

I'm a realtor. I don't see why someone would go direct to the listing agent. Although dual agency is common, how can one person have the best interest of two parties in mind? It's inherently a conflict.

Your logic is flawed and many people assume that this is the way it works. A listing agent isn't going to "sell" a lower offer; although they're not supposed to, they may tell you where the offer needs to be in order to win the bid. At the end of the day, you're going to pay fair market for the property. What does happen sometimes is that the listing agent will take a lower percentage if they represent both parties. Thats almost always a 1% discount to the seller.

Working with a *good* buyers agent definitely has it's benefits. I work in a large office downtown and I have access to many listings before they hit the market. Since it's become such a sellers market, more and more deals are getting done off market. Additionally, most properties that hit the market have multiple offers within days; there are many ways to make an offer more attractive - it's not just purchase price that a seller is looking for (although that is obviously at the top of the list). A good agent will help you navigate that process.

It's not like YOU are paying the agent as a buyer, so why not take advantage of their dedication and market knowledge?

Posted on: 2015/12/4 2:52

Re: Exclusive Buyer Agreement?

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chungang wrote:
As an investor in properties throughout the US, I would ALWAYS recommend you get a buyer's agent and here is why:

The Seller's Agent ONLY represents the Seller. If he/she deals directly with a buyer without an agent, he/she is now a DUAL AGENT and must disclose to the buyer he/she is a Dual Agent. What does it mean as a dual agent? This means that he/she cannot advise on negotiating ANYTHING for the buyer. Ultimately the sellers agent duty is only to the SELLER, but he/she must treat the buyer fairly and still disclose information REQUIRED BY LAW.

If you have a buyer's agent, you now have someone who can help negotiate for you. If they hear from other agents that the seller is distressed, is willing to take a lower price, or any other information that can affect the price, THEY CAN share it with you to help negotiate. Again, the seller's agent can only share information he/she is REQUIRED to disclose by law. Plus, a buyer's agent will know what a property SHOULD be priced at according to the market, not based on some arbitrary price that most sellers force agents to list at.

As far as commissions go, you have NO ABILITY to negotiate a lower commission from the sale of the home as a buyer. Actually, neither a sellers agent or a buyers agent can kick you back any money from a transaction because it would be a violation of Federal and State Law. The listing contract is between the seller and the seller's agent and can only be modified by mutual consent. Only if you hold a real estate license from any state can you ask for a referral fee. I hold one in another state for just that reason.

My recommendation is definitely GET A BUYERS AGENT. You DON'T have to sign an exclusive unless you're very comfortable with the agent and they're working really hard to find you the right place. Just remember that agents are only paid on commission, so all that time they spend taking you around to properties, doing research, etc. is UNPAID unless you contract through them.

A smart agent will ask as soon as possible if you are working with another agent. That way each of you don't waste each other's time.

thanks REALTOR. Guess who realtors - buying and selling - represent most often and have a loyalty to more so than anyone else? THEMSELVES. Guess what the goal of a realtor is - to sell homes. Not to sell the home of your dreams. Guess what happens when the deal closes and you are not happy with the home you bought? The realtor still gets to keep his or her commission.

A realtor is a glorified door opener and chauffeur. Can you name one type of information that as a home buyer - you don't have access to that realtors do?

Price comps - Available
Listings - Available
Neighborhood crime stats - Available
Restaurants in the area - Available
Building & home history - Available

Now if you want a person to pressure you to buy a home so they can make 3% as a buyer's agent then go right ahead. But getting all the info you need is readily available. PLUS, your realtor is not required to give you all the above info that I mentioned. You can ask and your realtor can pick and choose that info. AGAIN, a realtor's main goal is to sell homes and whether you like it or dislike it afterwards, the realtor still gets paid.

This is why being an informed buyer using the sellers agent works. I'll give a concrete example.

Home is listed for 100,000. Seller's agent gets 3% commission when split or full 6% if they represent the seller and buyer.

If they represent you (buyer) and sell the home at 95k, they get 5700. OR you can bring in a realtor and they sell at 100k and they get 3k.

The realtor selling the home earns more money convincing the homeowner to sell at 95k than at 100k. You (the buyer) benefits.

Simple math. Done.

Posted on: 2015/12/3 22:14

Re: Exclusive Buyer Agreement?

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Quote:

chungang wrote:
DTJCVIEW,
You cannot negotiate the commission rate because it is between the seller and the seller's agent. What you are talking about is a rebate from the buyers agent, which can be offered in 40 states of which NJ is one. In a hot market, no experienced agent would offer such a rebate because of all the work that is required to find and qualify a buyer. This rebate can be used towards the purchase price of the home.

But the fact remains you cannot change the commission that the seller and seller's agent have set.

The buyer's contract is with the buyer's agent. This thread is about employing an agent for a buyer. It doesn't really matter what the seller and their agent have agreed - it just gives you an idea of the money on the table. As a buyer you can negotiate whatever deal you like with your agent, irrespective of what the seller has agreed with their agent.

Whether they agree to act as your agent is a different question. Usual rules still apply like
- if you don't ask, you don't get
- shop around.

Posted on: 2015/12/3 21:21

chungang

Re: Exclusive Buyer Agreement?

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DTJCVIEW,

I stand corrected.

You cannot negotiate the commission rate because it is between the seller and the seller's agent. What you are talking about is a rebate from the buyers agent, which can be offered in 40 states of which NJ is one. In 10 states it is not allowed.

But, in a hot market, no experienced agent would offer such a rebate because of all the work that is required to find and qualify a buyer. This rebate can be used towards the purchase price of the home.

But the fact remains you cannot change the commission that the seller and seller's agent have set by contract since the buyer is not a party to the contract.

Posted on: 2015/12/3 21:07

Re: Exclusive Buyer Agreement?

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Quote:

jc201jc wrote:
thanks for the replies. what is a typical % commission rate that should be included in the contract? how do i know if i am getting a good deal or not? i don't want to be left on the hook owing the realtor a ton of $$$ if their percentage fee is too high.

You won't actually owe the the broker money directly (unless perhaps it's a for sale by owner). It effectively comes out of the sales price. Not sure what it's locally these days, but 3% used to be the norm.

It's worth reading the link I posted earlier - it will give you a few ideas on what to ask for in the contract (flat fee, %discount, etc). Me - I'd aim for 2% of your price range, or 3% of average sales price in the area - whichever is lower.

http://www.caare.org/NegotiatingWithBuyerAgents

Posted on: 2015/12/3 20:56

jc201jc

Re: Exclusive Buyer Agreement?

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thanks for the replies. what is a typical % commission rate that should be included in the contract? how do i know if i am getting a good deal or not? i don't want to be left on the hook owing the realtor a ton of $$$ if their percentage fee is too high.

Posted on: 2015/12/3 20:23

Re: Exclusive Buyer Agreement?

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Quote:

chungang wrote:
...

As far as commissions go, you have NO ABILITY to negotiate a lower commission from the sale of the home as a buyer. Actually, neither a sellers agent or a buyers agent can kick you back any money from a transaction because it would be a violation of Federal and State Law. The listing contract is between the seller and the seller's agent and can only be modified by mutual consent. Only if you hold a real estate license from any state can you ask for a referral fee. I hold one in another state for just that reason.

...

ALL commissions are negotiable. Think it falls under Federal Anti-Trust Laws. Why do you think a buyer can't negotiate the rate? Source please.

http://www.caare.org/NegotiatingWithBuyerAgents

Posted on: 2015/12/3 20:22

chungang

Re: Exclusive Buyer Agreement?

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As an investor in properties throughout the US, I would ALWAYS recommend you get a buyer's agent and here is why:

The Seller's Agent ONLY represents the Seller. If he/she deals directly with a buyer without an agent, he/she is now a DUAL AGENT and must disclose to the buyer he/she is a Dual Agent. What does it mean as a dual agent? This means that he/she cannot advise on negotiating ANYTHING for the buyer. Ultimately the sellers agent duty is only to the SELLER, but he/she must treat the buyer fairly and still disclose information REQUIRED BY LAW.

If you have a buyer's agent, you now have someone who can help negotiate for you. If they hear from other agents that the seller is distressed, is willing to take a lower price, or any other information that can affect the price, THEY CAN share it with you to help negotiate. Again, the seller's agent can only share information he/she is REQUIRED to disclose by law. Plus, a buyer's agent will know what a property SHOULD be priced at according to the market, not based on some arbitrary price that most sellers force agents to list at.

As far as commissions go, you have NO ABILITY to negotiate a lower commission from the sale of the home as a buyer. Actually, neither a sellers agent or a buyers agent can kick you back any money from a transaction because it would be a violation of Federal and State Law. The listing contract is between the seller and the seller's agent and can only be modified by mutual consent. Only if you hold a real estate license from any state can you ask for a referral fee. I hold one in another state for just that reason.

My recommendation is definitely GET A BUYERS AGENT. You DON'T have to sign an exclusive unless you're very comfortable with the agent and they're working really hard to find you the right place. Just remember that agents are only paid on commission, so all that time they spend taking you around to properties, doing research, etc. is UNPAID unless you contract through them.

A smart agent will ask as soon as possible if you are working with another agent. That way each of you don't waste each other's time.

Posted on: 2015/12/3 19:43

Re: Exclusive Buyer Agreement?

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My advice: Negotiate with the seller's agent directly. Have them be your realtor as well. The full 6% commission will motivate them to get you the best price possible so the sale closes. You will have more room to negotiate.

A buyer's realtor, at the end of the day, doesn't have your best interests in mind. They want to close the deal which may conflict with what they tell you about the house, neighborhood, etc.

The fact is, google can do what most realtors do. Gaining access to houses/buildings can be done via the seller's agent.

Posted on: 2015/12/3 19:10

marullos88

Re: Exclusive Buyer Agreement?

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No one made me sign an exclusive contract last year when I was looking at houses, and I'm glad because the first agent sucked.

Posted on: 2015/12/3 17:50

jctexan

Re: Exclusive Buyer Agreement?

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The owner of the house to be sold negotiates a percentage of the sale price of the house to be paid to the listing agent as their compensation. If a buyer (represented by another agent) makes an offer, the buyer's agent receives a portion of the listing agents commission (usually half). Since you do not have any negotiating power in the deal between the seller and his listing agent, you're not paying it; in the same way you are not paying the Starbucks employee when you buy a coffee. Sure your business is what allows the employer to pay the employee, but the agreement on salary is the decision and negotiation of the employer. The seller pays it out of his/her proceeds from the house; just like the Starbucks employer pays the employee out of the profits of the business. This is a silly hair-splitting argument.

The reason I would not sign a buyer's agreement is that you would be liable to pay the buyers agent a commission (above the list price of the house) if that buyer's agent showed you a FSBO house in a non-exclusive agreement, or even if you found it on your own if you signed an exclusive buyer's agreement. That is not in your best interest, and not a good deal.

Posted on: 2015/12/3 17:41

jcneighbor

Re: Exclusive Buyer Agreement?

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Quote:

plnj wrote:
It is actually pretty standard. You can tell them you only want a 30 day agreement if you would like. This agreement is to protect the agent from showing you a dozen houses and then you go to your pal that is a part time agent for side cash and buy a house the first agent showed you through said pal. I honestly don't know an agent that doesn't have a customer sign it.

We bought 3 houses Downtown between 1986 and 1999, and it sure wasn't standard practice back then. There are a bunch of folks on here who are active investors in rental properties so maybe they'll chime in on this point.

Negotiating for 30 days puts a light under their butts if you're really and truly ready to pull the trigger and buy. But you can also limit it "to houses/properties that they are the first to show to you" (and you will put each and every new showing in writing). I've used multiple agents in the past - not to waste anyone's time, but to see the full spectrum of what was available. And different agencies DID show me different houses, so there seemed to be some question about certain agencies not exactly sticking to the MLS rules...

I can see both the For and Against arguments for this. This link was written by a realtor but it gives a semi-balanced discussion on the issue:

http://blog.franklyrealty.com/2015/09 ... gency-contracts-dont.html

Good luck with your purchase!

Posted on: 2015/12/3 16:38

Re: Exclusive Buyer Agreement?

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Quote:

plnj wrote:
Quote:

dtjcview wrote:
Quote:

jctexan wrote:
Buyers don't pay commissions to agents. Sellers do.

...

And who pays the seller? The buyers realtor and sellers realtor split the commission. If you have no broker the seller's broker typically keeps the lot. With your own broker - you have an opportunity to claw some of that commission back.

The seller pays both the buyers and sellers agent.

With who's money? Ultimately it comes from the proceeds of the sale - which is paid for by guess who - the buyer.

Posted on: 2015/12/3 16:30

plnj

Re: Exclusive Buyer Agreement?

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Quote:

dtjcview wrote:
Quote:

jctexan wrote:
Buyers don't pay commissions to agents. Sellers do.

...

And who pays the seller? The buyers realtor and sellers realtor split the commission. If you have no broker the seller's broker typically keeps the lot. With your own broker - you have an opportunity to claw some of that commission back.

The seller pays both the buyers and sellers agent.

Posted on: 2015/12/3 16:01

plnj

Re: Exclusive Buyer Agreement?

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It is actually pretty standard. You can tell them you only want a 30 day agreement if you would like. This agreement is to protect the agent from showing you a dozen houses and then you go to your pal that is a part time agent for side cash and buy a house the first agent showed you through said pal. I honestly don't know an agent that doesn't have a customer sign it.

Posted on: 2015/12/3 16:00