Reply to How common is it for buyers to get part of the commission?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Not OP, but 2023 re-bumper here.

Let’s run some numbers?

I’m looking to buy a $2.5 million house. Standard 2.5% commission would be $62,500 going to the buyers agent/firm.

I’m an experienced homeowner and know exactly where I want to be and what I want. I don’t need to walk through open houses with an agent. I don’t need real estate listings emailed to me. I don’t need to know about coming soon properties. I don’t need your comp information, I’ve lived in this area 10+ years and follow my local real estate inside out like many homeowners because it is a major investment.

I do need an experienced and trustworthy real estate agent once I find the house I want, to walk through it with them once, to interface with the sellers agent and negotiate if needed, to navigate the standard paperwork, and to help with any unusual issues.

How many hours of work can this possibly be? 20? 50? 100?

Let’s grossly overestimate and say 100. That’s a juicy $625/hr for buyers commission.

My guess is 25 is more realistic. That’s $2500/hr.

Yes I know some inexperienced first time buyers are buying at 400k and dragging agents to 20-30 properties. Not as good a yield there but that’s not me.

I am only asking to pay a reasonable amount for the services of a good real estate agent. The traditional real estate commission system does not work for me. I’ve found those working with the big brokers unable to work out better terms and thus I’ll be looking elsewhere.

If someone else would like to post good leads on experienced and reliable agents who rebate some of the buyers commission please contribute to this thread. Thanks.[/quote]

Okay, Tiger.

Do you have access to the homes you want to see?

Do you have access to GCAAR forms and know how each term and contingency works?

Do you know a good home inspector? (Again, how will you access the house)?

I am SURE you know how to negotiate home inspection items!

Do you have access to a good title company who will assure you receive clear and marketable title?

All that being said, GOOD AGENTS are NOT DISCOUNT AGENTS!

[/quote]

DP. Don't oversell your value.

- Seller's agent can provide access. They're getting paid to sell the house.
- Seller's agent can provide the forms. Those forms have been around ages and don't pretend they're worth more than the paper they're written on.
- in this area, half the $2 million houses are being bought by big law lawyers. Yeah, they can understand the term and contingency. This isn't a complex deal.
- most people in the market for $2 million know the basics of negotiating.
- I found my prior real estate agents by asking friends. Guess what, that's the same way I'll find home inspectors. I certain don't need to pay you thousands for a referral.
- same on the title company. Title searches aren't that hard, and title insurance exists for a reason. The agent certainly isn't assuring anything about the title.

You've maybe offered reasons that you should charge $5k flat fee. You haven't offered a single reason that you should extract $50k from a straight forward residential real estate sale as a buyer's agent. [/quote]

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