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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Okay can someone who isn’t a realtor shill kind of weigh in on the best ways to leverage these new rules? I’m tired of absolute idiots becoming realtors just showing me a house I want to see, then maybe do some limpwristed, but most likely conspiratorial negotiations with a seller agent, and filling out a couple forms and charging a big percent. It’s a joke. I get realtors will continue to try their best to abuse the new rules so they can continue the grift, but how can we get around that? What hard and fast stipulations can a buyer or seller employ to mitigate the fckery these days?[/quote]

The best way to leverage these new rules is to not use a buyer's agent. Ask the listing agent to show you the home. You should not have to pay extra or sign any agreements to pay compensation for this.

Here's how this will help buyers:

Buyer A uses a buyer's agent and owes them 2% commission. They offer $1M with a seller concession of 2% to go to the buyer's agent. So effectively, Buyer A is offering $980K (actually a little less because the seller has to pay taxes and commission on that extra 2%/$20K).

Buyer B is unrepresented. They offer $985K. No seller concessions.

So [b]all else being equal[/b], Buyer B just won the house while paying $15K less than the other offer. Both the buyer and seller are better off for not having a second greedy realtor trying to get cut in on the deal.[/quote]

That's just the thing, however. It's extremely rare for "all else being equal" to be true with competing offers where the only consideration is a tiny differential in price offered. Also, [b]in your example, Buyer B is overpaying for the house.[/b] [/quote]

Are you saying that Buyer B should instead offer $980,001?  Sure, if they knew what Buyer A was offering, but they don't.  So isn't it the case then that every highest bid offer is "overpaying" if they are more than $1 over the next highest offer?

Also, why wouldn't "everything being equal" be true?  Again, the "special sauce" that a buyers agent brings is, what exactly? If it's "waive contingencies", then why wouldn't the seller just go back to Buyer B and say "if you can keep your offer at the same level, but waive contingencies, we will accept? Sending that email is worth an extra $5k if I am the seller.[/quote]

Say you have two offers like you outline, with a $5K difference. Things that could be different in them:

1) Contingencies, including home sale contingency
2) Settlement dates
3) Rent backs
4) Requests for closing credits (especially help w/ closing costs)
5) Financial strength of the buyer. I'm not taking an offer for 5K more if their financials are materially weaker
6) Requests for things to convey

Just to name a few off the top of my head.

You're acting like money is the only thing that makes offers different. It's not.[/quote]

None of those have anything to do with whether a buyers agent is present or not.  And all of them can be negotiated (with or without an agent), and even included in the seller requirements to all people offering. And the closing credit is EXACTLY the issue that an unrepresented buyer makes stronger, since they don't need that credit to pay their agent.[/quote]

+1 Some of these terms such as rent backs and closing dates are typically communicated from the listing agent. Buyers don't just randomly include rent backs unless the listing agent says that the seller wants it. So now the listing agent can just share the seller's preferences directly with the buyer.

If the buyer is requesting things to convey, then that can go through the listing agent as well. Although it's a little odd for a buyer to request to keep the seller's possessions.

A home sale contingency weakens any offer. This has nothing to do with whether or not the buyer has their own realtor. The financial strength of the buyer doesn't change by using or not using a realtor.

Requesting closing credits is less money for the seller's bottom line, but also has nothing to do with using a realtor or not.

Now asking for seller's concessions to pay for the buyer's realtor REALLY weakens the buyer's offer.

So it's clearly a win for buyers to not use buyer's agents.
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