Reply to As a buyer, how can I leverage new Realtor commission rules for my benefit?

Forum Index » Real Estate

Reply to "As a buyer, how can I leverage new Realtor commission rules for my benefit?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]OP, the answer to question is probably "find a cheap buyer's agent".  Before, there was limited benefit to shopping around, since sellers committed to paying a buyer commission upon listing a house.  Really, the only way for a buyer to save money was to find an agent willing to rebate a portion of the commission.  Now you can simply pay less to begin with, meaning a rebate is unnecessary and you will also have a more competitive offer.

Consider the example of a $1M house.  Before, it would may listed with a 2.5% buyer agent fee.  To save this money, you would have needed to find an agent willing to rebate you some of the commission, let's say half.  Then, if you make a $1M offer, you'd get a rebate of $12,500.  Now, you can simply pay the same agent $12,500 and make an offer for $975K.  Both you and the seller are equally well off as under the old system, but your offer is $25K below one that requests an inflated buyer agent concession.  Or you can offer $987,500 with a $12,500 concession to pay your agent, with the same outcome.

And shop around.  You can absolutely find a buyer's agent willing to help you purchase a $1M house for $12,500.  I'd bet you could also find one for $10K, or even for $5K.  As you move in the direction of "no frills" expect to see fewer houses with your agent and to have somewhat less hand holding, but you can still get good advice on what matters, i.e.,  how much and what terms to offer, since this is not time intensive.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics