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Answers (15)
- Dave Tracy, "David Tracy"
- Contributions:41
If you use an agent to buy any property they should be paid a fair commission.
- David Cooper-Las Vegas, "LasVegasRents"
- Contributions:281
If I was selling foreclosure units, I want the highest NET sales price to be the accepted offer. If you make your offer thru the listing agent, the listing agent is capable of reducing the buy/sell commission since their are handling both sides. This will increase the NET to the seller.
- Dunes....
- Contributions:3894
It is not a "misconception" people can factor items into their sales price..LOL
They do it all the time..Businesses do it all the time..Agents do it all the time when "Factoring" their costs for Markting ect. into the Price they SELL their Product/Services for...
Yes it would be nice if "at all possible" was possible all the time..it's not is true and that's why I said........ if all possible
If selling at a Loss you still try to factor as many your costs as possible into the Price so YOUR LOSS is Smaller..perhaps the supposed purpose of a Short sale
I know what the question was I just don't agree with your High Opinion of what you Posted....
They do it all the time..Businesses do it all the time..Agents do it all the time when "Factoring" their costs for Markting ect. into the Price they SELL their Product/Services for...
Yes it would be nice if "at all possible" was possible all the time..it's not is true and that's why I said........ if all possible
If selling at a Loss you still try to factor as many your costs as possible into the Price so YOUR LOSS is Smaller..perhaps the supposed purpose of a Short sale
I know what the question was I just don't agree with your High Opinion of what you Posted....
- Jim Basquette CRS, CNE, "Jim Basquette"
- Contributions:1231
"Sellers if at all possible "Factor" their costs into the Price.."
It's a misconception that sellers can factor items into their sale price. It would be nice if it were "at all possible", but homes sell for market value in a open marketplace and less in a limited marketplace. They do not sell for more just because a seller would like to factor items into their price.
Items like commission the seller pays, what the seller paid, what the seller owed, what the seller has in the home, the fact that the seller needs the money to move into their new home and not relevant to the sales price.
A limited marketplace is one where fewer buyers are aware of an item for sale or if presented poorly, don't see the value in it.
The sellers who try to factor those items in, don't sell in a timely manner and if they eventually do, they generally get less than market value. The marketplace knows by them that the home is not worth the price and that the seller has now become desperate.
Like you said, "Most people know this because most of them are not idiots"
Now THAT is how business is done.
Some states forbid the rebate of commissions to buyers is that it isn't really a rebates, as buyers do not pay commissions.
The DOJ link was interesting. Any seller can choose any competing model, none of which require a buyer to pay a commission (unless thay agree otherwise), which was the question asked by the gavrob1000.
It's a misconception that sellers can factor items into their sale price. It would be nice if it were "at all possible", but homes sell for market value in a open marketplace and less in a limited marketplace. They do not sell for more just because a seller would like to factor items into their price.
Items like commission the seller pays, what the seller paid, what the seller owed, what the seller has in the home, the fact that the seller needs the money to move into their new home and not relevant to the sales price.
A limited marketplace is one where fewer buyers are aware of an item for sale or if presented poorly, don't see the value in it.
The sellers who try to factor those items in, don't sell in a timely manner and if they eventually do, they generally get less than market value. The marketplace knows by them that the home is not worth the price and that the seller has now become desperate.
Like you said, "Most people know this because most of them are not idiots"
Now THAT is how business is done.
Some states forbid the rebate of commissions to buyers is that it isn't really a rebates, as buyers do not pay commissions.
The DOJ link was interesting. Any seller can choose any competing model, none of which require a buyer to pay a commission (unless thay agree otherwise), which was the question asked by the gavrob1000.
- Morcos Azer, "Realty World Classic"
- Contributions:131
It depends on your agreement with your agent. You may hire an agent to work for you and gets paid by any of the followings:
1- Paid by the Seller only.
2- Paid by the Buyer only.
3- Paid by both Seller and Buyer.
Most likely Buyer agents do not get paid by the seller in Foreclosure sale or do not get paid enough for thier work. Then they get into agreement to be paid by the buyer even partially.
Keep everything in writting and make sure your agents get paid one way or another. Your agents is there for you and as they have duties to you, they also have obligations to meet. It is not fair that you hire an agent without pay. Do You Agree?
God Bless you
1- Paid by the Seller only.
2- Paid by the Buyer only.
3- Paid by both Seller and Buyer.
Most likely Buyer agents do not get paid by the seller in Foreclosure sale or do not get paid enough for thier work. Then they get into agreement to be paid by the buyer even partially.
Keep everything in writting and make sure your agents get paid one way or another. Your agents is there for you and as they have duties to you, they also have obligations to meet. It is not fair that you hire an agent without pay. Do You Agree?
God Bless you
- Dunes....
- Contributions:3894
Sellers if at all possible "Factor" their costs into the Price..
Most people know this because most of them are not idiots...it's how Business is done
You "factor" your costs/expenses as a Seller into the Price of the Product so you don't lose Money..Commission is a "Cost/Expense"
Perhaps this info from The Dept. of Justice may interest you
Competing Models of Real Estate Brokerage
"Ten states forbid buyers' brokers from rebating a portion of the sales commission to the consumer. Eight states require consumers to buy more services from sellers' brokers than they may want, with no option to waive the extra items. HUD recently clarified its rule that rebates are permissible under RESPA as long as they are reported on the HUD-1 form." ...What are the laws in your state?
Consumers can save thousands of dollars in commissions
"New business models are emerging that allow consumers to save thousands of dollars when they buy or sell a home. Where these practices are allowed, some buyers' brokers are offering refunds on commissions, and some sellers' brokers are charging only for services actually used." Competition and Real Estate..
Good Luck
Most people know this because most of them are not idiots...it's how Business is done
You "factor" your costs/expenses as a Seller into the Price of the Product so you don't lose Money..Commission is a "Cost/Expense"
Perhaps this info from The Dept. of Justice may interest you
Competing Models of Real Estate Brokerage
"Ten states forbid buyers' brokers from rebating a portion of the sales commission to the consumer. Eight states require consumers to buy more services from sellers' brokers than they may want, with no option to waive the extra items. HUD recently clarified its rule that rebates are permissible under RESPA as long as they are reported on the HUD-1 form." ...What are the laws in your state?
Consumers can save thousands of dollars in commissions
"New business models are emerging that allow consumers to save thousands of dollars when they buy or sell a home. Where these practices are allowed, some buyers' brokers are offering refunds on commissions, and some sellers' brokers are charging only for services actually used." Competition and Real Estate..
Good Luck
- Jim Basquette CRS, CNE, "Jim Basquette"
- Contributions:1231
gavrob1000,
No, with or without an agent, listed on MLS or not, one or multiple units, foreclosure, REO or standard sale from a seller, unless you agree otherwise in writing (and there is rarely a reason your should), you do not pay a commission and/or admin fee.
You can choose to be represented by a separate buyer's agent, by the listing agent or to represent yourself, in any case you do not pay a commission.
How you are represented will affect how smoothly the transaction goes, if it closes and the price you pay. I recommend you use a separate buyer's agent and get the best one you can.
No, with or without an agent, listed on MLS or not, one or multiple units, foreclosure, REO or standard sale from a seller, unless you agree otherwise in writing (and there is rarely a reason your should), you do not pay a commission and/or admin fee.
You can choose to be represented by a separate buyer's agent, by the listing agent or to represent yourself, in any case you do not pay a commission.
How you are represented will affect how smoothly the transaction goes, if it closes and the price you pay. I recommend you use a separate buyer's agent and get the best one you can.
- Michael Helton
- Contributions:456
gavrob: To answer your question directly, you do NOT have to be represented by a buyers agent.
You could do it yourself, or you could hire a real estate attorney. But in some cases it does make sense to have a knowledgeable person representing you and your interests. It really depends on your intelligence, the time you have available, your comfort with risk, and many other factors.
If you do go with an agent then research them carefully. Even though it is true that the "buyer's" agent gets paid by the "seller", some people look at it as a conflict of interest because the more you spend as the buyer, the higher the commission is for your agent.
Some agents are worth every penny...and some are definitely not.
You could do it yourself, or you could hire a real estate attorney. But in some cases it does make sense to have a knowledgeable person representing you and your interests. It really depends on your intelligence, the time you have available, your comfort with risk, and many other factors.
If you do go with an agent then research them carefully. Even though it is true that the "buyer's" agent gets paid by the "seller", some people look at it as a conflict of interest because the more you spend as the buyer, the higher the commission is for your agent.
Some agents are worth every penny...and some are definitely not.
- John Kantorski, "johnkantorski"
- Contributions:128
That's the beauty of a buyer agent that not everyone realizes... The buyer has someone working in his/her best interests, and the only cost involved to the buyer is usually a relatively small admin fee. The seller (i.e. the bank) pays the commission to both agents.
- Sally Grenier, "Sallyg303"
- Contributions:86
The buyer doesn't pay the agent (a buyer's agent gets paid by the listing brokerage firm, who gets paid by the seller, or the bank, in this case). You absolutely want to have a Realtor working for you as a buyer's agent in any transaction.
- David Cooper-Las Vegas, "LasVegasRents"
- Contributions:281
If the foreclosure multiple units are listed in the MLS, than the bank is paying a commission to the listing agent, and you make your offer using that agent.
- Ronald Escobar, "Ron Escobar"
- Contributions:305
At least in California commission is always a negotiable item... it can be paid by buyers, sellers or both at the same time...
I have brought deals to my investor buyers that are so good, they end up paying me commission even though the seller also paid me commission...
Also, remember nothing is free... :-) You get what you pay for,... etc., etc.
I have brought deals to my investor buyers that are so good, they end up paying me commission even though the seller also paid me commission...
Also, remember nothing is free... :-) You get what you pay for,... etc., etc.
- Sharon Lewis, "Sharon Lewis"
- Contributions:3923
Rachel I am with KW in the Raleigh/Greater Triangle area, and we don't charge that 'admin fee' to our clients....just an FYI for you.
- Sharon Lewis, "Sharon Lewis"
- Contributions:3923
Not sure what you mean? We don't know the entire scenario here. If you are walking in without an agent and dealing with a listing agent, there should be no commission due from you.I would recommend that you use an attorney or realtor to guide you though. Normally commission comes from the sellers side.
Thank you
- Rachel Freeman Hablo espanol!, "RealtorGrandRapidsMI"
- Contributions:19
If you were to buy a property using an agent you would only have to pay a small Brokerage Fee. The fee at Keller Williams is $199. Their commission is paid by the seller.
do i have to pay an agent if i buy a foreclosure (multiple units)? what should the costs be if so?
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