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avamamma
My Girl
Member since 7/06 3395 total posts
Name:
Tara
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Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
We have been working with a Realtor that I love for a while to sell our home. She has been very helpful in sooo many areas and is just an all around nice person.
We will be going into contract on the sale of our house on Friday. She took us to see 3 house on Saturday, none of them were for us.
We found a "for sale by owner" that we love. Obviously, she can't represent us on the purchase of this home.
She wants to take us house hunting again this Saturday, we are planning on getting this house inspected on Saturday.
What do I do?????? When do I tell her?Do I go and look with her until the FSBO house is a done deal??
I mentioned this home to her casually a few months ago, and she said "Oh, you don't want to live over there, there is a great house over here" type of response. Obviously she wants the commission, which I understand, because I also work in sales. But this house is exactly what we are looking for.
What is the right way to handle this?
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Posted 2/9/10 10:00 PM  |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
I would just tell her. As a real estate agent you have to know that sometimes people find houses that don't entitle you to commission. I encourage buyers to look at FSBO listings because to me its most important for the people I'm working with to find a home that they love for the best price!
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| Posted 2/9/10 10:27 PM |
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
I wouldnt go on Saturday, you don't want to waste her time.
Maybe say a good friend of yours told you about the house and you gave it a try, and you guys loved it.
Maybe give her a GC to a restaurant to thank her.
Good Luck!
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| Posted 2/9/10 11:36 PM |
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ODonnell
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Member since 9/05 5983 total posts
Name:
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
While I understand how uncomfortable you will feel telling her, this is your future home you are talking about and it's great that you found a house you love. I would just be apologetic but firm. If she is selling your home she will still make a commission.
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| Posted 2/10/10 10:02 AM |
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DRMom
Two in Blue
Member since 5/05 20223 total posts
Name:
Melissa
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
I had something similar happen to me. When we moved to NC we wanted to rent and I met a RE agent online and she went with us to about 20 houses. Well we ended up finding a house on CL that worked for us at the time. We took her to dinner to thank her for all she did. We are still in touch and when my SIL moved here she also rented a house using this RE agent and then my IL's bought a house through her. The best compliment a realtor can get is referrals so just say-I am so sorry I wish we could buy a house through you but this house is perfect for us. I fully intend to recommend you to everyone I know
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| Posted 2/10/10 10:54 AM |
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mom2b
LIF Adult
Member since 5/09 1072 total posts
Name:
x
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
I went through this 2 years ago. I told her that I found a house I love FSBO. I thanked her for taking so much time with me to show me houses and assured her that I would recommend her to anyone who needed a realtor. She completely understood and said sometimes these things just happen and that the important thing is that we found a house we love. Your realtor is still making commision off your house so that should make it easier. I wouldn't go saturday though cause you don't want to waste her time.
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| Posted 2/10/10 11:02 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
Be careful. If you signed a buyer's agent contract with her, she could be entitled to 2% of your sale on the FSBO and could come after you for that.
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| Posted 2/10/10 11:18 AM |
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Goobster
:)
Member since 5/07 27557 total posts
Name:
:)
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
Posted by ave1024
Be careful. If you signed a buyer's agent contract with her, she could be entitled to 2% of your sale on the FSBO and could come after you for that.
really? How so?
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| Posted 2/10/10 11:45 AM |
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Nifheim
allo
Member since 1/09 5476 total posts
Name:
Jennifer
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
we had that happen as well. we were going around with an agent and after five months of looking we found a FSBo and told her thank you so much and inform her if the inspection will not work out and your back out on the market you will use her again, etc.
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| Posted 2/10/10 11:45 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
Posted by ave1024
Be careful. If you signed a buyer's agent contract with her, she could be entitled to 2% of your sale on the FSBO and could come after you for that.
yes this is true- I just read the buyer broker agreement
comission is earned when the buyer enters contract on a house
it doesn't say who finds the house
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| Posted 2/10/10 12:36 PM |
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
Posted by Beth
Posted by ave1024
Be careful. If you signed a buyer's agent contract with her, she could be entitled to 2% of your sale on the FSBO and could come after you for that.
yes this is true- I just read the buyer broker agreement
comission is earned when the buyer enters contract on a house
it doesn't say who finds the house
I thought this was only if it was through another REA?
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| Posted 2/10/10 1:38 PM |
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2girlsforme
LIF Adult
Member since 8/06 3071 total posts
Name:
XXXXXXXXX
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
Be honest with her. I had a similar situation when I purchased my home. I was working with a realtor for almost a year. She actually introduced me to the development in which I live. The first house she showed me just didn't work for us but at the time my DH told her "I'll look at anything that comes on the market this development." Because this was a newer development at the time and just on the outer reaches of our price range, she sort of laughed at us.
However, a few months later I was looking at homes in Newsday (this was over 14 years ago when people still used Newspapers  ) and I saw a home in the development that had just been reduced right to the upper range of our budget. I called the listing broker directly and bought the house. I certainly felt badly about what happened, but we were honest with the broker and even sent her clients. Unfortunately, its just par for the course when your an agent.
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| Posted 2/10/10 1:42 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
Posted by 2girlsforme
Be honest with her. I had a similar situation when I purchased my home. I was working with a realtor for almost a year. She actually introduced me to the development in which I live. The first house she showed me just didn't work for us but at the time my DH told her "I'll look at anything that comes on the market this development." Because this was a newer development at the time and just on the outer reaches of our price range, she sort of laughed at us.
However, a few months later I was looking at homes in Newsday (this was over 14 years ago when people still used Newspapers ) and I saw a home in the development that had just been reduced right to the upper range of our budget. I called the listing broker directly and bought the house. I certainly felt badly about what happened, but we were honest with the broker and even sent her clients. Unfortunately, its just par for the course when your an agent.
I know it's " par for the course" but coming from the agents point of view- it's still hurts
time is money- and in the case you posted- there is no reason you couldn't have called the agent you were working with to show you that house- by using a buyers agent- they are loyal to you and getting you the best price
the sellers agent is loyal to the seller and obilgated to get the seller the highest price
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| Posted 2/10/10 1:54 PM |
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2girlsforme
LIF Adult
Member since 8/06 3071 total posts
Name:
XXXXXXXXX
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
Posted by Beth
Posted by 2girlsforme
Be honest with her. I had a similar situation when I purchased my home. I was working with a realtor for almost a year. She actually introduced me to the development in which I live. The first house she showed me just didn't work for us but at the time my DH told her "I'll look at anything that comes on the market this development." Because this was a newer development at the time and just on the outer reaches of our price range, she sort of laughed at us.
However, a few months later I was looking at homes in Newsday (this was over 14 years ago when people still used Newspapers ) and I saw a home in the development that had just been reduced right to the upper range of our budget. I called the listing broker directly and bought the house. I certainly felt badly about what happened, but we were honest with the broker and even sent her clients. Unfortunately, its just par for the course when your an agent.
I know it's " par for the course" but coming from the agents point of view- it's still hurts
time is money- and in the case you posted- there is no reason you couldn't have called the agent you were working with to show you that house- by using a buyers agent- they are loyal to you and getting you the best price
the sellers agent is loyal to the seller and obilgated to get the seller the highest price
I'm sure it still hurts but she honestly should have shown me the house. I expressed interest in the development and once the house came down into my price range she should have jumped on it.
That said I did feel badly just not badly enough to pay her a commission. As I said earlier this house was at the outer end of our budget and paying only one agent made the purchase doable. In addition, I was very honest with her and even sent her future clients.
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| Posted 2/10/10 2:06 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
Posted by 2girlsforme
[
That said I did feel badly just not badly enough to pay her a commission. As I said earlier this house was at the outer end of our budget and paying only one agent made the purchase doable. In addition, I was very honest with her and even sent her future clients.
huge misconception- the comission is the same
the sellers agent got double - a real estate agents dream! it's called double ending- meaning they make comission on both ends of the deal!
they don't drop the comission b/c there is only 1 agent invloved
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| Posted 2/10/10 2:14 PM |
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2girlsforme
LIF Adult
Member since 8/06 3071 total posts
Name:
XXXXXXXXX
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
Posted by Beth
Posted by 2girlsforme
[
That said I did feel badly just not badly enough to pay her a commission. As I said earlier this house was at the outer end of our budget and paying only one agent made the purchase doable. In addition, I was very honest with her and even sent her future clients.
huge misconception- the commission is the same
the sellers agent got double - a real estate agents dream! it's called double ending- meaning they make commission on both ends of the deal!
they don't drop the commission b/c there is only 1 agent involved
I understand the commission is the commission but in my case the commission did drop. The agent/broker agreed to cut their commission to move the deal forward. This was easier to do as there was only one agent involved. I personally think its always easier to deal with just one person.
In our case, there was a competing offer which was a little higher. However, even though she was the seller's agent, she pushed for us because we were the better buyer. We didn't have a sale on the other end, were coming in 20% cash, etc.
Message edited 2/10/2010 3:10:30 PM.
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| Posted 2/10/10 3:08 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
Posted by 2girlsforme
I understand the commission is the commission but in my case the commission did drop. The agent/broker agreed to cut their commission to move the deal forward. This was easier to do as there was only one agent involved. I personally think its always easier to deal with just one person.
In our case, there was a competing offer which was a little higher. However, even though she was the seller's agent, she pushed for us because we were the better buyer. We didn't have a sale on the other end, were coming in 20% cash, etc.
it might be easier to deal with 1 person- but under NYS law the sellers agent by law has to get the highest price for the seller and be loyal to the seller - however you offer was the better offer so she still did that-
personally if I wasn't a realtor myself I would use a buyers agent- since I have an understanding of how the laws work in NYS- but most people don't and this is the highest complaint to the department of state about realtors (in most other states both the buyer and seller are represented and most don't involve attorneys- even upstate NY agents handle the closing)
there is a new law pending that most agents would want to see and that would change things to have the agent or agents work for the transaction
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| Posted 2/10/10 3:32 PM |
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Goobster
:)
Member since 5/07 27557 total posts
Name:
:)
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
Posted by JerseyMamaOf2
Posted by Beth
Posted by ave1024
Be careful. If you signed a buyer's agent contract with her, she could be entitled to 2% of your sale on the FSBO and could come after you for that.
yes this is true- I just read the buyer broker agreement
comission is earned when the buyer enters contract on a house
it doesn't say who finds the house
I thought this was only if it was through another REA?
I would think so too.
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| Posted 2/10/10 3:39 PM |
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2girlsforme
LIF Adult
Member since 8/06 3071 total posts
Name:
XXXXXXXXX
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
Posted by Beth
Posted by 2girlsforme
I understand the commission is the commission but in my case the commission did drop. The agent/broker agreed to cut their commission to move the deal forward. This was easier to do as there was only one agent involved. I personally think its always easier to deal with just one person.
In our case, there was a competing offer which was a little higher. However, even though she was the seller's agent, she pushed for us because we were the better buyer. We didn't have a sale on the other end, were coming in 20% cash, etc.
it might be easier to deal with 1 person- but under NYS law the sellers agent by law has to get the highest price for the seller and be loyal to the seller - however you offer was the better offer so she still did that-
personally if I wasn't a realtor myself I would use a buyers agent- since I have an understanding of how the laws work in NYS- but most people don't and this is the highest complaint to the department of state about realtors (in most other states both the buyer and seller are represented and most don't involve attorneys- even upstate NY agents handle the closing)
there is a new law pending that most agents would want to see and that would change things to have the agent or agents work for the transaction
While I don't disagree with you in theory, and certainly understand the law, my concern was price.
In my situation, there was a higher offer which was presented. I believe we were the better buyer because we were ready to move forward and there was no impediment to our doing so.
However, there was a higher offer which the agent downplayed. Regardless, I knew the house was a good deal and I knew what I was willing to pay, so the agent was solely a conduit for me.
But sometimes the best price/deal is subjective. For me the agent was a conduit, I was buying an area that I got to know very well at what I believed to be a good price. Dealing with only one person made that a lot easier.
As I said earlier, my intention was never to waste the realtor's time and every time I went out with her I was hoping to buy. In fact, I almost bought a house from her but right before we were about to go to contract the seller decide not to sell. But everything worked out for her, as last I heard she runs two of Coldweller Banker's largest offices on the NorthShore of Suffolk.
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| Posted 2/10/10 3:47 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
Posted by Goobster
Posted by JerseyMamaOf2
Posted by Beth
Posted by ave1024
Be careful. If you signed a buyer's agent contract with her, she could be entitled to 2% of your sale on the FSBO and could come after you for that.
yes this is true- I just read the buyer broker agreement
comission is earned when the buyer enters contract on a house
it doesn't say who finds the house
I thought this was only if it was through another REA?
I would think so too.
Not when you have a signed CONTRACT with a buyer's agent.
Now granted... not all buyers agent agreements have this clause. But many of them do.
The clause typically states that the buyer's agent is due a "minimum commission" if the house is purchased by the buyer. Legally and contractually, it doesn't matter if the house was purchased with another seller agent or not. The buyer's agent is working hard finding you a house, the reasoning to have this clause is to prevent the buyer's agent from missing out on a sale like a FSBO sale.
You can speculate all you want. Read the fine print.  I'm telling you many contracts will have it. Any Realtor will tell you this (and I am not even a Realtor).
Want to know another way this clause can come into effect? The "minimum" commission may be say 2%. What if the seller's RE is only offering a buyer's agent 1% commission on the sale. In that case "contractually" the buyer is on the hook to pay their buyer's agent that remainding 1%. Granted this RARELY happens, especially in this housing market. But it's there and it can legally be enforced if the buyer's RE chooses.
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| Posted 2/10/10 4:02 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
it's prefectly legally to have one agent represent both the buyer and the seller
you just need to have the buyer and seller both sign an agency disclosure for dual agency
that's why they want to change the law and have the agent work for the transaction - not one side or the other b/c like I said it's the biggest complaint by buyers and sellers about realors to the DOS
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| Posted 2/10/10 4:03 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
Posted by ave1024
Not when you have a signed CONTRACT with a buyer's agent.
Now granted... not all buyers agent agreements have this clause. But many of them do.
The clause typically states that the buyer's agent is due a "minimum commission" if the house is purchased by the buyer. Legally and contractually, it doesn't matter if the house was purchased with another seller agent or not. The buyer's agent is working hard finding you a house, the reasoning to have this clause is to prevent the buyer's agent from missing out on a sale like a FSBO sale.
You can speculate all you want. Read the fine print. I'm telling you many contracts will have it. Any Realtor will tell you this (and I am not even a Realtor).
Want to know another way this clause can come into effect? The "minimum" commission may be say 2%. What if the seller's RE is only offering a buyer's agent 1% commission on the sale. In that case "contractually" the buyer is on the hook to pay their buyer's agent that remainding 1%. Granted this RARELY happens, especially in this housing market. But it's there and it can legally be enforced if the buyer's RE chooses.
the one my company uses is from LIBOR and I would assume most broker would use that one-
the buyer broker can take this to abritration (realtors don't sue) not saying they will- but they can
most likely not if they are your listing agent
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| Posted 2/10/10 4:10 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
Posted by 2girlsforme
In our case, there was a competing offer which was a little higher. However, even though she was the seller's agent, she pushed for us because we were the better buyer. We didn't have a sale on the other end, were coming in 20% cash, etc.
How do you REALLY know there was a competing offer? That kind of talk most of the time is typical Realtor B.S. exhibit A.
Let me make a few points:
Don't you understand that the seller's agent has to use every "trick" in the book to get you to pay top dollar? Like Beth said, they are working for the seller.
It is possible if you had a buyer's agent, their negotiating tactics are 100x better than you think yours are. TRUST ME. They have the right to present ANY offers in front of the homeowner, which allows them to examine the homeowner for an intitial reaction (like body language).
This is something you as a buyer simply cannot do.
I used to think the way you did, thinking I can get a better deal going directly with the listing agent. In reality it took me about 5 years to realize I would have done MUCH better buying my prior house if I had a buyer's agent. I didn't realize until I was ready to sell that same house to see what it's really like to be on "the other side".
My "buyers agent"... who also doubled as the listing agent to the house I sold... got my TOP DOLLAR on my last house. Basically ripped the woman off. Why did that woman get ripped off? Because she didn't have a buyer's agent. My agent made out like a freakin' bandit as he got dual commission.
Then purchasing my house I am in now, he got me a ridiculously sweet deal. Way lower than I would have ever expected to pay.
Message edited 2/10/2010 4:16:41 PM.
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| Posted 2/10/10 4:14 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
Posted by Beth
most likely not if they are your listing agent
Oh definitely. I think as far as the OP is concerned... she doesn't have too much to worry because this agent is getting the sale of her house.
The fact that the OP is going a FSBO is really a non-issue. The realtor probably wouldn't care and would understand.
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| Posted 2/10/10 4:15 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
Posted by ave1024
Posted by Beth
most likely not if they are your listing agent
Oh definitely. I think as far as the OP is concerned... she doesn't have too much to worry because this agent is getting the sale of her house.
The fact that the OP is going a FSBO is really a non-issue. The realtor probably wouldn't care and would understand.
I don't think she does either
I certainly wouldn't go after her- but honestly is the best policy - always
so many people end up wasting real estate agents and mortgage bankers time b/c they are not honest
I would be more upset if you had me waste my time and money showing you houses after you found one already
most people don't realize this but for me to show you 4 houses on a Saturday
it's not just the hour we go and look at them- probably 2 hours in the office went into this - between searching, calling the other agents, mapping to find the best route (thank g-d for google maps!)
then picking up keys etc
and of course maybe not taking out someone else- that didn't find a house already
I don't get paid unless I sell something- so please be most considerate of people's time- time is money (I go thru 2 tanks of gas most weeks between open houses and showing houses)
if you don't need someone services just be honest and let them know- so they can use that time to work with someone else- time is limited and I like to use it wisely and make it worth it!
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| Posted 2/10/10 4:32 PM |
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