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Replies (12)
- Justin Gramm, "globella"
- Contributions:2
Hello!
You can certainly hire your own buy-side agent to represent you. You can negotiate the compensation for your buyer's agent between you and the buyer's agent, and it makes total sense to have your own representative.
You can certainly hire your own buy-side agent to represent you. You can negotiate the compensation for your buyer's agent between you and the buyer's agent, and it makes total sense to have your own representative.
- bombayboy
- Contributions:2
so I might need some help understanding buy-side agency.
Is it normal to compensate the agent in addition to the commission they'd earn from the seller?
secondly, should I inform the listing agent that I am planning to work with a different agent...or leave that to my agent?
Is it normal to compensate the agent in addition to the commission they'd earn from the seller?
secondly, should I inform the listing agent that I am planning to work with a different agent...or leave that to my agent?
- Sunny Kim & David Chung, "Sunny Heesun Kim"
- Contributions:103
Usually, Buyer's Agent is compensated by the Listing Agent who is paid by the Seller. For example, Seller agrees to pay the Listing Agent 6% upon close of escrow per Listing Agreement. Listing Agent usually pays 50% of such 6% (some agents offer less) to the "cooperating broker (i.e., Buyer's Agent)" to attract buyers. Please be advised that in certain circumstances, Buyer may be responsible to pay Buyer's Agent additional compensation. For instance, if the Buyer-Broker Agreement states that Buyer agrees to compensate Buyer's Agent 3% and the Listing Agent only offers 2.5%, then Buyer would have to pay the remaining 0.5% to Buyer's Agent. Please ask your Broker/Agent regarding compensation/commission arrangement and carefully review the terms of the Buyer-Broker Agreement, if any.
- broker_GRI
- Contributions:3454
Bombayboy,
You mentioned "new construction" in your post. Often times builders will want to use their own contracts and leave buyers agents out of the transaction but will compensate them by referral fee or other arrangement.
You may want to have a conversation with the listing agent to see if that is the case.
Having your own representation is very wise indeed and you can achieve that with a buyer's agent or real estate attorney.
On another note..........I like the sound of that listing agents follow up and all (just as it always should be)
All the best in your new venture,
Tanya
- Laura Coffey, "SCV ReMax Realtor"
- Contributions:278
Usually with new construction you have to have the selling (buyer representative) agent with you on your first visit. Here in Califonia the one that shows you the home has procurring cause for the commission. The listing agent showed you the home and followed up. I can understand you wanting your own selling agent to represent you but the listing agent may have a right to the whole commission. If you want your own rep I would make sure everything was out in the open and the representative that you hire works something out with the agent before they present your offer. If not they could end up working the entire transaction for free.
- broker_GRI
- Contributions:3454
Bombayboy,
Absolutely contact the agent and let him know your intentions. This will also give you the opportunity to have a conversation regarding what type of transaction this will be.
Standard purchase agreements or specific builder agreements?
The answer to your question to buy-side agency could vary widely from state to state.
Yes Laura,
In Ca we have procuring cause but we also need the client to agree with a duel agency relationship freely (without duress) and the argument could then be made that the withholding of compensation could be seen as a form of coercion.
My understanding of the function of procuring cause is that it discourages agents from "luring" clients away from an already established agency relationship.
There is no other agent "enticing" Bombayboy away from the listing agent, this individual is electing not to enter into a duel agency relationship.
Although I am not serving on the arbitration committee therefore could not pretend to know the outcome.......but....
It really would seem to be the height of self serving greediness for a listing agent who was simply already doing the job they were hired to do (market and make the house available to potential buyers) to insist on procuring cause.
Had Bombayboy and his wife walked in with an agent the listing agent would have then been sending those updates to the agent instead....part of a listing agent's duty in selling a house.
- Nancy Alert, "NancyAlert"
- Contributions:264
You as a buyer have a responsibility to your self to obtain representation in any real estate transaction. The listing agent represents the builder/seller, the listing agent will not lie to you but the listing agent will not tell you how low your offer can truly be or will not negotiate for you like your buyer agent will. Most builder representatives will tell the buyer that the price is not negotiable, no closing cost or just $$$$$ in closing cost or the builder will not do this will not do that etc.
Your buyer agent can go in and negotiate most everything with the exception of price in most new construction because 99% of the builders will not negotiate the price unless its the last property being sold in the community. The builder wants prices to remain consistant for appraisal purposes. However, you can negotiate closing cost, upgrades, lot premiums, sun room, wood floors, finished basement etc.
Hire an agent that is willing to negotiate with the builder rep not one that says you cannot negotiate with a builder. It does not matter that the builder uses their contract and the listing agent/builder representative is writing the contract, your agent is the one negotiating on your behalf by telling the listing what you would like him/her to put in the contract. Good Luck.
Nancy Alert
Your buyer agent can go in and negotiate most everything with the exception of price in most new construction because 99% of the builders will not negotiate the price unless its the last property being sold in the community. The builder wants prices to remain consistant for appraisal purposes. However, you can negotiate closing cost, upgrades, lot premiums, sun room, wood floors, finished basement etc.
Hire an agent that is willing to negotiate with the builder rep not one that says you cannot negotiate with a builder. It does not matter that the builder uses their contract and the listing agent/builder representative is writing the contract, your agent is the one negotiating on your behalf by telling the listing what you would like him/her to put in the contract. Good Luck.
Nancy Alert
- Andy Leung, "The Power to Move U!"
- Contributions:750
Your conversation needs to begin with the listing agent that originally showed you the property. You have every right to choose who represents you. I would be open and honest and voice your concerns. The listing agent may be able to assist you by recommending an agent to handle your side of the transaction to where you are comfortable.
- Kirk Killinger, "Onekillerdeal"
- Contributions:106
You are certainly entitled to your own representation. It is wise to have your own represntation. Unfortunately sometimes deals get pushed through if you offer directly through the Listing agent. They should have a good feel for what the owner/seller will accept. If you go with an area specialist they should have familiarity to the listing agent and be able to fight for the best deal for you especially if the home has been on the market over 30 days with no offers.
- Simon Mills, "Mills Realty"
- Contributions:1858
You should definately get your own representation. You want someone to protect your best interests. The commission being paid are really not your concern as you are not paying them. Your buyer's agent will confirm the commission they will receive through a serperate written agreement with the listing agent. The only thing you should be worried about is making sure your best interests are protected.
Simon Mills
Mills Realty
Simon Mills
Mills Realty
- Tony Camero, "westhoustonagent"
- Contributions:86
Unless you had signed a buyer agency agreement with the listing agent...and I am guessing you havent. No ..no obligation to buy directly though the listing agent. Its actually a really good idea to use a buyers agent to represent you in the transaction
- Mike &Eve Alexander - Buyers Broker, "Orlando Buyer Broker"
- Contributions:173
Finding a Buy-side agent after visiting a property with the listing agent
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