Profile picture for Thucydides

No listing agent commission if purchasing new home with listing agent

I am starting to look for an agent to list my home.  There is a real estate company in my area that offers to waive the seller's agent commission such that I would only pay the 3% buyer's agent commission if I buy my new house through the listing agent.  Since I am looking to upgrade to another house and plan to use the same agent for both the sale of my current home and the purchase of my new home, this sounds appealing.  Is this sort of deal common in the industry or is those something that is likely to be too good to be true?  I would be grateful for any advice.
  • June 23 2009 - Clermont
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (5)

If you are absolutely sold on the listing agent that you are using, like this person and feel that they would properly represent you with both aspects of your sale then why not?
  • August 20 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Well, you could prob. get away with a 2.5% listing agent, and using a buyer side agent costs nothing, so actually your losing .5% or breaking even.  Plus the NEW home will cost more than an older home, so your paying that much more.  Typically even if your buyer agent doesnt claim the buyer side commission, the listing agent will keep it.  So you will likely not get any discount on the house that way either.
  • June 23 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I agree with Mike.  Sometimes cheapest isn't always best.  Look at Value not cost.
  • June 23 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

It's common among the discount brokerages or the do it yourself brokerages where they get your home listed on MLS but expect you to take the calls for showings, do your own marketing, etc.

Find out what they are prepared to offer you in terms of selling your house and how much they will do for you, when compared to a another brokerage. I did a transaction with an agent for one of these FSBO companies. She was an excellent agent but she eventually left for a full service brokerage probably because of the compensation.

And just like any major transaction, contact a couple of brokerages and ask them for a competitive market analysis or CMA and ask them what makes them different from the company you are considering using.
  • June 23 2009
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for sunnyview
I have heard of some agencies offering this same type of deal. Please read the contract carefully though before you sign. The contract is what sets out the terms of the agreement. Look for things like length of required listing with them, advertising costs and the way that dispute would be handled if there was a problem on your sale listing. You want to make sure that you have a reasonable way out of the listing side of the agreement if they are good on your buy transaction, but then fail to do what they promised on the sale listing. Some agreements like this leave you liable for the whole commission if you back out later even if you havea good reason. Read the contract and see if it make sense for you.
  • June 23 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.