Buyer's agent fees

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ok, looking for house that’s upper bracket in a buyer’s market.
Buyer’s agent claimed 2.5% is nonnegotiable and would most likely be paid by seller.
I’d rather not pay the commission, especially since we’re experienced buyers. I’d be fine with a flat fee.
Or do I just contact the listing agent?

You can contact the listing agent to submit an offer. As discussed on this thread they need to take it to their client, ethics requires them to do so, but some have had issues with this. But if you contact them about seeing the house they probably won't take time out of their day to show it to you, and so if you don't have an agent you will need to wait for an open house to see it. If there is one. If there isn't, it'll likely sell within days and you'll miss out.

Or you can find another buyer's agent who is willing to negotiate a flat fee. They are out there. They probably aren't terribly experienced if they have to time to bother with buyers who are wanting to negotiate down their pay, but they exist.

I know the bolded is what people are told, but it's still so funny. Sure I want you to pay me tens of thousands of dollars, but take time out of my day to SHOW the house to a potential buyer? Madness, who would do such a thing.

Do you realize that homes in this area are going under contract with 2 to 3 days of listing? Do you think every listing agent has the time to take calls from unrepresented randos and meet them at the property and walk them through it? I will assure you they don't. Not when there are plenty of buyer's agents making appointments and showing the property and putting offers in.

If it's that quick and requires that little legwork, sounds like a 1% listing agent fee is appropriate in a hot market with high sales levels.

+1

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ok, looking for house that’s upper bracket in a buyer’s market.
Buyer’s agent claimed 2.5% is nonnegotiable and would most likely be paid by seller.
I’d rather not pay the commission, especially since we’re experienced buyers. I’d be fine with a flat fee.
Or do I just contact the listing agent?

You can contact the listing agent to submit an offer. As discussed on this thread they need to take it to their client, ethics requires them to do so, but some have had issues with this. But if you contact them about seeing the house they probably won't take time out of their day to show it to you, and so if you don't have an agent you will need to wait for an open house to see it. If there is one. If there isn't, it'll likely sell within days and you'll miss out.

Or you can find another buyer's agent who is willing to negotiate a flat fee. They are out there. They probably aren't terribly experienced if they have to time to bother with buyers who are wanting to negotiate down their pay, but they exist.

I know the bolded is what people are told, but it's still so funny. Sure I want you to pay me tens of thousands of dollars, but take time out of my day to SHOW the house to a potential buyer? Madness, who would do such a thing.

Do you realize that homes in this area are going under contract with 2 to 3 days of listing? Do you think every listing agent has the time to take calls from unrepresented randos and meet them at the property and walk them through it? I will assure you they don't. Not when there are plenty of buyer's agents making appointments and showing the property and putting offers in.

That is the job. The job is to determine if the “rando” has the financial means to make a competitive offer, and to show financially qualified buyers the thing the seller is selling.

[Anonymous]

No, agents don't have the authority to ask for PoF or anything else to show the property. Do that and you will get sued again.

[Anonymous]

Anonymous wrote:No, agents don't have the authority to ask for PoF or anything else to show the property. Do that and you will get sued again.

Sued for violating...what, exactly?

[Anonymous]

Anonymous wrote:No, agents don't have the authority to ask for PoF or anything else to show the property. Do that and you will get sued again.

Listing agents only have the authority vested in them by the seller to do what is asked of them. Thus the word "agent." If the seller asks for proof of funds from a buyer, the buyer can either comply or decide not to do what the seller requests. What would open the agent to a suit would be not doing what the sellers asks.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ok, looking for house that’s upper bracket in a buyer’s market.
Buyer’s agent claimed 2.5% is nonnegotiable and would most likely be paid by seller.
I’d rather not pay the commission, especially since we’re experienced buyers. I’d be fine with a flat fee.
Or do I just contact the listing agent?

You can contact the listing agent to submit an offer. As discussed on this thread they need to take it to their client, ethics requires them to do so, but some have had issues with this. But if you contact them about seeing the house they probably won't take time out of their day to show it to you, and so if you don't have an agent you will need to wait for an open house to see it. If there is one. If there isn't, it'll likely sell within days and you'll miss out.

Or you can find another buyer's agent who is willing to negotiate a flat fee. They are out there. They probably aren't terribly experienced if they have to time to bother with buyers who are wanting to negotiate down their pay, but they exist.

I know the bolded is what people are told, but it's still so funny. Sure I want you to pay me tens of thousands of dollars, but take time out of my day to SHOW the house to a potential buyer? Madness, who would do such a thing.

Do you realize that homes in this area are going under contract with 2 to 3 days of listing? Do you think every listing agent has the time to take calls from unrepresented randos and meet them at the property and walk them through it? I will assure you they don't. Not when there are plenty of buyer's agents making appointments and showing the property and putting offers in.

That is the job. The job is to determine if the “rando” has the financial means to make a competitive offer, and to show financially qualified buyers the thing the seller is selling.

Has no idea what realtors do on a day-to-day basis ^^. That is not "the job."

[Anonymous]

Anonymous wrote:Agents don't have the authority to ask for PoF or anything else to show the property. Do that and you will get sued again

Sued for what?

Anonymous wrote:Has no idea what realtors do on a day-to-day basis ^^. That is not "the job."

So, the job is not "to show financially qualified buyers the thing the seller is selling." Gotcha.

If it's not a real estate agents job to show my listing to buyers with proof of financing, then who then should I hire to perform that job?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Agents don't have the authority to ask for PoF or anything else to show the property. Do that and you will get sued again

Sued for what?

Anonymous wrote:Has no idea what realtors do on a day-to-day basis ^^. That is not "the job."

So, the job is not "to show financially qualified buyers the thing the seller is selling." Gotcha.

If it's not a real estate agents job to show my listing to buyers with proof of financing, then who then should I hire to perform that job?

Let’s say I’m a buyer who’s paying cash, but I’m not comfortable to show my bank statements to every single listing agent before a showing to share with the seller? Is that the risk the agent or seller have to take?
Obviously easier to have a buyers agent, also if I want to see a bunch of houses to get a feel for the market.

[Anonymous]

Anonymous wrote:Let’s say I’m a buyer who’s paying cash, but I’m not comfortable to show my bank statements to every single listing agent before a showing to share with the seller? Is that the risk the agent or seller have to take?
Obviously easier to have a buyers agent, also if I want to see a bunch of houses to get a feel for the market.

Yes. If the seller requires proof of finances, you not being comfortable with this requirement will disqualify you from making an offer.

If you are not comfortable showing proof of finances to agents, then don't. You can pay a buyer agent, or attorney, or a similar professional acting on your behalf, to alleviate your discomfort.

[Anonymous]

1% fee is becoming norm these days. You can get an idea of this when people have to shell out from their pockets.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Agents don't have the authority to ask for PoF or anything else to show the property. Do that and you will get sued again

Sued for what?

Anonymous wrote:Has no idea what realtors do on a day-to-day basis ^^. That is not "the job."

So, the job is not "to show financially qualified buyers the thing the seller is selling." Gotcha.

If it's not a real estate agents job to show my listing to buyers with proof of financing, then who then should I hire to perform that job?

You don't hire anyone to "do that job." Your listing agent will either set up an open house, put a lockbox out for buyer's agents and monitor the software that the buyer agents use to make appointments to go show it using the keys in the lockbox, or both. So part of the job of the agent is to make sure potential buyers see the property, yes, but they aren't showing it themselves outside of being there during the open house (and they probably aren't even there for that -- they usually have underlings for that, I have seen very few actual listing agents at the open houses lately, and I've probably attended 30 of them over the past few months). If you are a buyer and don't have an agent and you call a listing agent to see a listed property they will either a) refer you to a buyer's agent, or b) make you sign a buyer's agent agreement with them. They will only meet you to walk through a property they are selling without one of those two things if it has been sitting on the market forever and they are desperate to sell it. Even then, I think most will require you to get a buyer's agent and use the lockbox.

Seller's agents do a LOT of work to sell a house; walking people who don't have a buyer's agent through the property is not usually part of it.

Most people know this. I don't think you have bought or sold a house in a long time (or perhaps ever).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Agents don't have the authority to ask for PoF or anything else to show the property. Do that and you will get sued again

Sued for what?

Anonymous wrote:Has no idea what realtors do on a day-to-day basis ^^. That is not "the job."

So, the job is not "to show financially qualified buyers the thing the seller is selling." Gotcha.

If it's not a real estate agents job to show my listing to buyers with proof of financing, then who then should I hire to perform that job?

You don't hire anyone to "do that job." Your listing agent will either set up an open house, put a lockbox out for buyer's agents and monitor the software that the buyer agents use to make appointments to go show it using the keys in the lockbox, or both. So part of the job of the agent is to make sure potential buyers see the property, yes, but they aren't showing it themselves outside of being there during the open house (and they probably aren't even there for that -- they usually have underlings for that, I have seen very few actual listing agents at the open houses lately, and I've probably attended 30 of them over the past few months). If you are a buyer and don't have an agent and you call a listing agent to see a listed property they will either a) refer you to a buyer's agent, or b) make you sign a buyer's agent agreement with them. They will only meet you to walk through a property they are selling without one of those two things if it has been sitting on the market forever and they are desperate to sell it. Even then, I think most will require you to get a buyer's agent and use the lockbox.

Seller's agents do a LOT of work to sell a house; walking people who don't have a buyer's agent through the property is not usually part of it.

Most people know this. I don't think you have bought or sold a house in a long time (or perhaps ever).

I understand how most agents in the United States market "usually" do things.

As a seller, am I allowed to show my property to any buyer I deem qualified, whenever I want? Yes.
As a seller, am I allowed to hire a fiduciary on my behalf to do the thing I am allowed to do? Yes.
As a seller, will this benefit me? That's my decision. Not yours.

"who then should I hire to perform that job"

I agree most agents would not be interested in doing this. You describing how "most agents" do things misses the point entirely. The context here is how buyer agents are someone a requirement. They are not. They are only a requirement for how you do your work.

Most people know this. I don't think you have considered other ways to sell a home in a long time (or perhaps ever).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ok, looking for house that’s upper bracket in a buyer’s market.
Buyer’s agent claimed 2.5% is nonnegotiable and would most likely be paid by seller.
I’d rather not pay the commission, especially since we’re experienced buyers. I’d be fine with a flat fee.
Or do I just contact the listing agent?

You can contact the listing agent to submit an offer. As discussed on this thread they need to take it to their client, ethics requires them to do so, but some have had issues with this. But if you contact them about seeing the house they probably won't take time out of their day to show it to you, and so if you don't have an agent you will need to wait for an open house to see it. If there is one. If there isn't, it'll likely sell within days and you'll miss out.

Or you can find another buyer's agent who is willing to negotiate a flat fee. They are out there. They probably aren't terribly experienced if they have to time to bother with buyers who are wanting to negotiate down their pay, but they exist.

Why bother listing with an agent who isn't interested in the best interests of the client? It's in the sellers best interest for the product to be available and presented to all qualified buyers. "The listing agent might not show to unrepresented buyers" is repeated so often here, it's a terrible look for listing agents.

You make a good case to avoid listing agents. Too many cannot be trusted so why risk it.

How is it even legal? The listing agent gets paid and work for the seller.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Agents don't have the authority to ask for PoF or anything else to show the property. Do that and you will get sued again

Sued for what?

Anonymous wrote:Has no idea what realtors do on a day-to-day basis ^^. That is not "the job."

So, the job is not "to show financially qualified buyers the thing the seller is selling." Gotcha.

If it's not a real estate agents job to show my listing to buyers with proof of financing, then who then should I hire to perform that job?

You don't hire anyone to "do that job." Your listing agent will either set up an open house, put a lockbox out for buyer's agents and monitor the software that the buyer agents use to make appointments to go show it using the keys in the lockbox, or both. So part of the job of the agent is to make sure potential buyers see the property, yes, but they aren't showing it themselves outside of being there during the open house (and they probably aren't even there for that -- they usually have underlings for that, I have seen very few actual listing agents at the open houses lately, and I've probably attended 30 of them over the past few months). If you are a buyer and don't have an agent and you call a listing agent to see a listed property they will either a) refer you to a buyer's agent, or b) make you sign a buyer's agent agreement with them. They will only meet you to walk through a property they are selling without one of those two things if it has been sitting on the market forever and they are desperate to sell it. Even then, I think most will require you to get a buyer's agent and use the lockbox.

Seller's agents do a LOT of work to sell a house; walking people who don't have a buyer's agent through the property is not usually part of it.

Most people know this. I don't think you have bought or sold a house in a long time (or perhaps ever).

You are really missing the point, agent. With homes valued as highly as they are and with the amount of money you are being paid to represent sellers, the market is telling you in every way it can that you need to do more. We're no longer into paying you $100K to do as little as you do. So, yes, your job now IS walking prospective sellers through the house. Get used to it.

[Anonymous]

We intend to buy a house in a certain neighborhood where we used to live. We know that area of about 8 square blocks extremely well and don't need anyone to do more than open a door for us after we find a home that meets our needs and budget. We'll be well qualified to purchase in cash, and unless we see signs of deferred maintenance, are probably going to offer "as is."

So, given that a buyer's agent will offer US no value (though I understand that the listing agent might find it handy not to have to meet us to show the house), do we just approach the listing agent directly? The truth is, that we're likely to know the sellers or at least can get to them through mutual friends. So if the listing agent doesn't tell the seller of our interest, we're likely going to make sure that the owner knows about it.

What do you think?