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Question about using a buyer agent
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nov04libride
big brother <3
Member since 5/05 14672 total posts
Name:
Me
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Question about using a buyer agent
We did not use a buyer agent when we bought our condo, but we are now seriously looking at houses. If we use a buyer agent, there is no additional fee for us as buyers, right? They just split the commission with the seller agent? Is there any reason NOT to use one?
Message edited 12/29/2007 11:49:49 PM.
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Posted 12/29/07 11:49 PM  |
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LulaBell
:)
Member since 1/06 3508 total posts
Name:
J
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Re: Question about using a buyer agent
I don't see any reason not to use one - just make sure you are being objective and looking at what you really want. Good luck!
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| Posted 12/30/07 12:06 AM |
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Blazesyth
*yawn*
Member since 5/05 8129 total posts
Name:
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Re: Question about using a buyer agent
Thats what happened with ours. We went to Home Buyers Resource Center to get a buyers agent.
There are some 'more pure' buyers agents out there that will not split the commission with the sellers agent, you pay them directly. Because when you think about it, if they are splitting the commission, it does benefit your buyers agent to drive the price up higher on the house.
But we decided that we were content with the fact that our agent, even paid by the seller would still have our best interest in mind when it came to the house itself, that they weren't pushing a house on us just because it was in their personal or their company's inventory. We discussed personally the pricing and thought it was fair, we didnt depend on either agent for that.
ETA: The downside of using a buyers agent is that your agent will sometimes have less power in a bidding situation. If a house is being sold by century 21; and there are 2 potential buyers at the same price one with a buyers agent, one with an agent from century 21; the selling century one agent will push the seller to sell to the century 21 buyer, and not the buyers agent buyer. Just because that way their sale/buy will have higher and it will be exclusive to them. We also decided that this was low risk, we'd rather have clearer opinions on houses. I mean - we walked into 3 or 4 different houses, the RE walked in a little bit before us, started walking around, and would come up to us and whisper in our ear "You dont want this place, it has structural issues." There was even one house we wanted to put a bid on, and the agent kept on asking us "are you sure? What about (all of the bad stuff)?" And it wasnt like the houses they were warning us against were low priced houses that they thought they could get us into a more expensive house - they were all in the same small range so their commission would be negotiable. A seller/buyer agent, especially on a house of their own, CAN'T point out the bad parts of the house, where the buyers agent can.
I just always thought it was a major conflict of interest. If you are trying to sell a widget - and someone else comes to you and says "Hi! I want to buy a widget!" Of course you are going to push them to buy your widget, or your friend's widgets, even if that widget wobbles. 
Message edited 12/30/2007 9:21:19 AM.
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| Posted 12/30/07 9:11 AM |
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nov04libride
big brother <3
Member since 5/05 14672 total posts
Name:
Me
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Re: Question about using a buyer agent
Posted by Blazesyth
Thats what happened with ours. We went to Home Buyers Resource Center to get a buyers agent.
There are some 'more pure' buyers agents out there that will not split the commission with the sellers agent, you pay them directly. Because when you think about it, if they are splitting the commission, it does benefit your buyers agent to drive the price up higher on the house.
But we decided that we were content with the fact that our agent, even paid by the seller would still have our best interest in mind when it came to the house itself, that they weren't pushing a house on us just because it was in their personal or their company's inventory. We discussed personally the pricing and thought it was fair, we didnt depend on either agent for that.
ETA: The downside of using a buyers agent is that your agent will sometimes have less power in a bidding situation. If a house is being sold by century 21; and there are 2 potential buyers at the same price one with a buyers agent, one with an agent from century 21; the selling century one agent will push the seller to sell to the century 21 buyer, and not the buyers agent buyer. Just because that way their sale/buy will have higher and it will be exclusive to them. We also decided that this was low risk, we'd rather have clearer opinions on houses. I mean - we walked into 3 or 4 different houses, the RE walked in a little bit before us, started walking around, and would come up to us and whisper in our ear "You dont want this place, it has structural issues." There was even one house we wanted to put a bid on, and the agent kept on asking us "are you sure? What about (all of the bad stuff)?" And it wasnt like the houses they were warning us against were low priced houses that they thought they could get us into a more expensive house - they were all in the same small range so their commission would be negotiable. A seller/buyer agent, especially on a house of their own, CAN'T point out the bad parts of the house, where the buyers agent can.
I just always thought it was a major conflict of interest. If you are trying to sell a widget - and someone else comes to you and says "Hi! I want to buy a widget!" Of course you are going to push them to buy your widget, or your friend's widgets, even if that widget wobbles.
Thanks so much, this is really helpful! I basically need the help you mention about noticing structural issues, etc. We actually already found the houses we are looking at online, but I know I am a novice at this and won't notice and of the hidden issues. Thanks again!
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| Posted 12/30/07 9:38 AM |
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alnem
This is gonna be a good year!
Member since 2/06 9562 total posts
Name:
Emily
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Re: Question about using a buyer agent
Posted by MrsMadness
I don't see any reason not to use one - just make sure you are being objective and looking at what you really want. Good luck!
the only downside would be that you are contractually obligated to work with them and only them. if things go sour for some reason with them, you ar still stuck working with them and no other REA can help you because of that contract. if by chance they show you a house thats not on MLS (meaning there is no commission split with a cooperating realtor) and you like this house, then YOU are obligated to pay their commission.
and also keep in mind that alot of houses on MLS dont offer buyer agent commissions in which then again YOU would be obligated to pay their commission.
its great to have an agent working in your best interest, but just keep in mind that their could be a chance that you'll have to come out of pocket to pay them their fee.
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| Posted 12/30/07 10:33 AM |
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Blazesyth
*yawn*
Member since 5/05 8129 total posts
Name:
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Re: Question about using a buyer agent
Posted by alnem
the only downside would be that you are contractually obligated to work with them and only them. if things go sour for some reason with them, you ar still stuck working with them and no other REA can help you because of that contract. if by chance they show you a house thats not on MLS (meaning there is no commission split with a cooperating realtor) and you like this house, then YOU are obligated to pay their commission.
and also keep in mind that alot of houses on MLS dont offer buyer agent commissions in which then again YOU would be obligated to pay their commission.
its great to have an agent working in your best interest, but just keep in mind that their could be a chance that you'll have to come out of pocket to pay them their fee.
But if you goto a Century21 and ask for them to find you a house - don't they also make you sign a contract?
How can you tell that the houses on MLS don't offer buyer agent commissions? All of the houses that we looked at (20ish) the selling agent never had an issue splitting the commission.
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| Posted 12/30/07 10:49 AM |
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alnem
This is gonna be a good year!
Member since 2/06 9562 total posts
Name:
Emily
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Re: Question about using a buyer agent
Posted by Blazesyth
Posted by alnem
the only downside would be that you are contractually obligated to work with them and only them. if things go sour for some reason with them, you ar still stuck working with them and no other REA can help you because of that contract. if by chance they show you a house thats not on MLS (meaning there is no commission split with a cooperating realtor) and you like this house, then YOU are obligated to pay their commission.
and also keep in mind that alot of houses on MLS dont offer buyer agent commissions in which then again YOU would be obligated to pay their commission.
its great to have an agent working in your best interest, but just keep in mind that their could be a chance that you'll have to come out of pocket to pay them their fee.
But if you goto a Century21 and ask for them to find you a house - don't they also make you sign a contract?
How can you tell that the houses on MLS don't offer buyer agent commissions? All of the houses that we looked at (20ish) the selling agent never had an issue splitting the commission.
i've never heard of a century 21 asking you to sign a contract to work with a sellers agent. each office is independently owned and each have their own way of doing things. however, what each office is REQUIRED by state to have you sign is an agency disclosure statement which tells you who they are working for when earning a commission. by signing that you are NOT contractually obligated to work with them and only them.
there's no way for you as a buyer to tell what the commission agreement states. when you work with a buyers agent and they see an MLS listing with no buyer agency compensation, they simply wont show you that house.
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| Posted 12/30/07 12:29 PM |
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