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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
The contract I entered with my REA says it includes FSBO homes. so if we found one my REA would still represent us or we own the commission set forth in the contract
Didn't you sign paperwork to work with her? If so, you should read it, and make sure you can do this.
I'm sorry but I feel like what you are doing is really wrong. Your REA worked hard for you. just because you found it doesn't make it ok to just disregard a contract (assuming one exists) I can't imagine a realtor would work with a client without one.
I'm not trying to be harsh, but the right thing to do is let her know you found a home. 
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Posted 2/10/10 4:41 PM  |
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Prudential Douglas Elliman Real Estate
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Goobster
:)
Member since 5/07 27557 total posts
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
Posted by HeatherRose
The contract I entered with my REA says it includes FSBO homes. so if we found one my REA would still represent us or we own the commission set forth in the contract
Didn't you sign paperwork to work with her? If so, you should read it, and make sure you can do this.
I'm sorry but I feel like what you are doing is really wrong. Your REA worked hard for you. just because you found it doesn't make it ok to just disregard a contract (assuming one exists) I can't imagine a realtor would work with a client without one.
I'm not trying to be harsh, but the right thing to do is let her know you found a home.
I never knew this. I just don't understand how can a REA represent you if it's FSBO?
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| Posted 2/10/10 6:02 PM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
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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 HeatherRose
The contract I entered with my REA says it includes FSBO homes. so if we found one my REA would still represent us or we own the commission set forth in the contract
Didn't you sign paperwork to work with her? If so, you should read it, and make sure you can do this.
I'm sorry but I feel like what you are doing is really wrong. Your REA worked hard for you. just because you found it doesn't make it ok to just disregard a contract (assuming one exists) I can't imagine a realtor would work with a client without one.
I'm not trying to be harsh, but the right thing to do is let her know you found a home.
I never knew this. I just don't understand how can a REA represent you if it's FSBO?
I didn't know it either and we have worked with a few REA. this was the first one who mentioned it to us. in our signed agreement with our REA it states the commision owed on "any" home purchase during the time frame we agreed to. my REA made sure to be clear that it included it and if we found one we would use him. I never asked how because I knew that FSBO was a last resort for us.
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| Posted 2/10/10 6:15 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
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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
I never knew this. I just don't understand how can a REA represent you if it's FSBO?
The REA doesn't represent you if you buy a FSBO. It's not about that. It's about the contract you signed with the REA.
The contract you sign says you will pay the REA a commission for helping you find a house and the money will be paid when you close on a house. It doesn't matter if it's FSBO or not. You are paying the REA for a service.
If the REA gets wind you bought a house FSBO, or with another buyer's agent... you will owe that REA money.
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| Posted 2/10/10 6:42 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
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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 Goobster
I never knew this. I just don't understand how can a REA represent you if it's FSBO?
the seller is selling with out an agent
(which is another issue- but 99% people take the 6% off the offer anyway - and FSBO do get less for their homes by 16% on average)
that doesn't mean the buyer can't have an agent
the buyers agent can still negioate the offer
and the comission will still be earned and paid
there are some houses listed on MLSLI that don't offer comission to a buyers agent- but a buyers agent can still sell the house and add the comission on to the offer
ETA- you can pay to have your house listed on MLS as a FSBO- so the odds of an agent seeing it are pretty good
Message edited 2/10/2010 8:19:24 PM.
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| Posted 2/10/10 7:51 PM |
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2girlsforme
LIF Adult
Member since 8/06 3071 total posts
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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 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.
In my case, I learned the other offer existed as my current neighbor was friendly with the prior owner and confirmed it.
In terms of actual negoiating, as I said after a year of looking I knew the area very well and more importantly knew what my bottom line was.
If the agent was unwilling to cut her commission, the deal wouldn't have worked.
I still believe that at the end of a day an agent wants to make a commission and that the best deal/offer can be a somewhat subjective proposition that doesn't always come down to price. In my situation, I'm pretty comfortable representing myself and my own interests, especially when I know the area very well.
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| Posted 2/10/10 11:00 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
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Beth
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
It really doesn't make sense to me that an agent would cut their comission for a lower offer...
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| Posted 2/11/10 7:53 AM |
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2girlsforme
LIF Adult
Member since 8/06 3071 total posts
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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
It really doesn't make sense to me that an agent would cut their commission for a lower offer...
Really, it happens a lot from what I hear. A friend of mine is an agent and she tells me she has cut her commission (with the approval of her brokerage) on many occasions to move a deal forward.
In our case, we didn't have a home to sell, were a month to month tenant and were coming in with more cash.
The house was also vacant as the seller had lost his job on the island and was anxious for a sale. In addition, we did negoiate and came up a bit to make the deal work. So we came up, the seller came down and the agent/broker cut their commission.
We really weren't trying to screw anyone but as I said earlier this development was at the absolute outer reaches of our price range and we were very willing to walk away if we had to. I believed then and believe now, that if you have cash and good credit another house will come along.
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| Posted 2/11/10 11:37 AM |
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Goobster
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Member since 5/07 27557 total posts
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
The agent who my brother bought his house from (listing agent) did this as well (cut his own commission for the deal to go through).
Message edited 2/11/2010 1:00:00 PM.
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| Posted 2/11/10 12:59 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".
I didn't say agents never cut their comission...I said it doesn't make sense when they have a "higher" offer to cut it
I can't imagine going to my broker and saying
I have 2 offers on the house on 123 road
One for $300k and one for $325k
Let's go against the law by not getting the highest price for the seller
Take the lower offer and cut our fee to do so!
That make no sense....I would bet the higher offer never exsisted...
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| Posted 2/11/10 1:16 PM |
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2girlsforme
LIF Adult
Member since 8/06 3071 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 Beth
I didn't say agents never cut their commission...I said it doesn't make sense when they have a "higher" offer to cut it
I can't imagine going to my broker and saying
I have 2 offers on the house on 123 road
One for $300k and one for $325k
Let's go against the law by not getting the highest price for the seller
Take the lower offer and cut our fee to do so!
That make no sense....I would bet the higher offer never exsisted...
In our case it was less than 10K that separated us and the HO was paying two mortgages. We were also ideal buyers as we were coming in with a fair amount of cash and it was clear that once we were in contract, barring a problem with the engineer's report, the HO had a solid deal.
My understanding is that no laws were broken as long as both offers were presented. As I said the other potential buyer had to sell their home and who knows how long that could take. So with only one agent, a buyer ready to move ahead and a HO paying two mortgages, I still think I was the better deal but I guess that is still open to opinion.
As for the existence of the other offer who really knows?? I tend to believe it existed as my neighbor mentioned it to me.
ETA: the HO was anxious for a deal and the hosue had been on the market for a while, the original agent didn't show it to me, I assume, because it was out of my price range. When I saw it, it had jsut been reduced to the absolute outer limits of what we were willing to pay.
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| Posted 2/11/10 2:15 PM |
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yelley
Fortunate
Member since 11/07 3037 total posts
Name:
Danielle
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
This exact thing happened to us, except our realtor was one of my very good friends brother. When we told him we had an offer accepted on a FSBO he was really angry and said some nasty things to me, but later apologized. It didn't end up well, as he continued trying to show me and DH houses while we were in contract, but hey, he has to make a living, so I can't really hold it against him.
But, my advice is to just be up front and honest with your realtor. The longer it goes before you tell her, the worse it might be.
good luck 
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| Posted 2/11/10 2:39 PM |
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Kara
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Member since 3/07 13217 total posts
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They call me "Tater Salad"
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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
I didn't say agents never cut their comission...I said it doesn't make sense when they have a "higher" offer to cut it
I can't imagine going to my broker and saying
I have 2 offers on the house on 123 road
One for $300k and one for $325k
Let's go against the law by not getting the highest price for the seller
Take the lower offer and cut our fee to do so!
That make no sense....I would bet the higher offer never exsisted...
The seller, not the REA, makes the decision about which offer to take. You have to present all offers to the seller anyway. Plenty of other things, besides bottom line price, can factor into which offer to take.
There is nothing illegal about the seller choosing the lower offer if that is what they want to do - and even in that situation, I have seen REAs lower their commission to make a sale work, even with competing offers. The higher offer could be a completely unqualified buyer, for example. The lower price could be faster the close, putting more money down, taking the house "as is." There are plenty of reasons a seller mgiht take a lower offer. Certainly the REA doesn't HAVE to take a lower commission to make that sale happen, but there are probably a lot who would slightly lower their commission to make a sale happen.
Message edited 2/11/2010 6:07:51 PM.
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| Posted 2/11/10 6:01 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 Kara
Posted by Beth
I didn't say agents never cut their comission...I said it doesn't make sense when they have a "higher" offer to cut it
I can't imagine going to my broker and saying
I have 2 offers on the house on 123 road
One for $300k and one for $325k
Let's go against the law by not getting the highest price for the seller
Take the lower offer and cut our fee to do so!
That make no sense....I would bet the higher offer never exsisted...
The seller, not the REA, makes the decision about which offer to take. You have to present all offers to the seller anyway. Plenty of other things, besides bottom line price, can factor into which offer to take.
There is nothing illegal about the seller choosing the lower offer if that is what they want to do - and even in that situation, I have seen REAs lower their commission to make a sale work, even with competing offers. The higher offer could be a completely unqualified buyer, for example. The lower price could be faster the close, putting more money down, taking the house "as is." There are plenty of reasons a seller mgiht take a lower offer. Certainly the REA doesn't HAVE to take a lower commission to make that sale happen, but there are probably a lot who would slightly lower their commission to make a sale happen.
of course- but they way the story was being relayed it sounded like something was off
but then she added after I posted this that the other offer was contigent on the sale of another house- that changes everything
that is a HUGE factor to be left out of the orginal story
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| Posted 2/11/10 7:04 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 Kara
Posted by Beth
I didn't say agents never cut their commission...I said it doesn't make sense when they have a "higher" offer to cut it
I can't imagine going to my broker and saying
I have 2 offers on the house on 123 road
One for $300k and one for $325k
Let's go against the law by not getting the highest price for the seller
Take the lower offer and cut our fee to do so!
That make no sense....I would bet the higher offer never exsisted...
The seller, not the REA, makes the decision about which offer to take. You have to present all offers to the seller anyway. Plenty of other things, besides bottom line price, can factor into which offer to take.
There is nothing illegal about the seller choosing the lower offer if that is what they want to do - and even in that situation, I have seen REAs lower their commission to make a sale work, even with competing offers. The higher offer could be a completely unqualified buyer, for example. The lower price could be faster the close, putting more money down, taking the house "as is." There are plenty of reasons a seller mgiht take a lower offer. Certainly the REA doesn't HAVE to take a lower commission to make that sale happen, but there are probably a lot who would slightly lower their commission to make a sale happen.
of course- but they way the story was being relayed it sounded like something was off
but then she added after I posted this that the other offer was contigent on the sale of another house- that changes everything
that is a HUGE factor to be left out of the orginal story
Not to belabor the point but I did say that I believed I was the better buyer, had no impediment to closing, was ready to move ahead, was coming in with more cash etc..
Regardless, I believe my original point was that commissions are lowered and deals are made all the time to get to the closing table.
Again, I have absolutely nothing against agents and if fact sent this agent potential business and was very, very open with her about what happened. I just don't think she earned a commission, even in the ethical sense, in this instance.
I do however believe that deals are easier to make when there are less people involved. My husband and I are currently looking to buy an investment/vacation home, and to be honest I am again just contacting listing agents directly when I see something I'm interested in. The area we are looking at is very small, I am very familiar with it and know exactly how much we can spend. So again, I'm pretty comfortable representing my own interests.
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| Posted 2/11/10 8:31 PM |
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brownie
Baby #1 is here!
Member since 11/08 13903 total posts
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Re: Please help, I am afraid to tell my Realtor that we found a "for sale by owner".
Just tell her
We had a realtor but I found a house on FSBO that we loved and ended up buying. Our realtor told us we wouldn't find all the things we wanted (garage, central air, etc) but we did with our FSBO.
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| Posted 2/11/10 9:44 PM |
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