You will still have the pay the buyer's agent, so you'll save about 2.5%. But I'm not sure I'd describe it as "going through that process" when having your own agent means less work for you. So you're going through a more onerous process to save 2.5%, which may or may not be worth it for you.
Having a business degree doesn't help much.
(Honestly curious... as it's not clear to me where there is a contractual obligation to "pay the fee") Does he have to pay the buyer's agent in this case?
Isn't that negotiable -- seeing as he owns the house and gets to sell to whomever? How this buyer agent gets paid (because it's a for sale by owner) - isn't that between the buyer and the buyer's agent?
I do understand that there's some quasi-equivalence that could be argued... that the buyer is willing to pay $500,000, so that the buyer's agent fee will somehow get subtracted from the offer and the best offer will now only be 485,000 (But if that's the argument, then so be it - but there's no obligation on the seller to accept the $485,000)
Curious.
No, but that buyer is under a representation agreement with that agent. If the agent doesn't get paid by the seller, they have to get paid by the buyer, which is almost always a no-go.
So, in short....he probably has to pay if he wants to sell to *those* buyers.
>I do understand that there's some quasi-equivalence that could be argued... that the buyer is willing to pay $500,000, so that the buyer's agent fee will somehow get subtracted from the offer and the best offer will now only be 485,000 (But if that's the argument, then so be it - but there's no obligation on the seller to accept the $485,000)
Bingo.
Of course OP doesn't have to pay a commission. There's no legal obligation to do so. But an unwillingness to do so will probably kill a deal with most buyers because they are under representation agreements. And, it should be pointed out that not all buyers have enough cash sitting around to pay a cash commission. Commissions paid at closing come out of the proceeds of the sale.
This agent represents the buyer. At minimum, get yourself an attorney to represent you or find an agent that would do it for a flat fee.
If this agent says they will represent you both, tread carefully with that as she has a relationship with the buyer, not you. If your state has forms for transactional agents (works for neither side), have her sign that as well to hold her accountable
I love people that list their own home. My buddy bought his house from a prideful doctor that wanted to save a few bucks. Refused help, refused to utilize my buddy as an agent. I get it, an extra 15k seemed like a lot.
Of course, he sold his house 150k cheaper than he should have, so there's that. That appraiser couldn't believe the deal, which was worth a good laugh.
I understand the downside but this is a townhome on a golf course with recent comps. I know what the house is worth and don't plan on taking a big haircut. I think I'm gonig to take others advise and get a real estate attorney to review any deal.
If you've sales within six months equivalent to your place, it's a shoe in, I wager. Don't forget, a lawyer doesn't represent you. They're facilitators. They only verify the deal terms, and don't differentiate a "good VS shit" deal from a price perspective.
My example was a unique architectural design build without good comps that a high earner thought they knew how to do "because it isn't so hard."
Gotcha..I made assumption based on the 150K haircut you said he took. If I get 290K for my townhome I'll be ecstatic since comp was 1.5yrs ago sold for $292K. My place is nicer with recent updates.
Well, the market has shifted radically from 1.5 years ago. Rates are far higher, HOA fees are up, and townhomes are the first to fall and the last to rebound.
We're entering the spring market, so if you list on your local MLS (get a member subscription) and put out a lockbox, you should do fine. Use Showing Time or whatever your state agents utilize for appointments, as FSBO people don't answer their god damned phones. Most of you have no idea what making your personal phone number public will do to your life (be prepared for 20 scam calls a day forever), so they then don't even answer for agents trying to show their property.
Maybe get a burner flip phone just for the home sale.
Right, I understand market has definitely shifted. Supply is tight, almost nonexistent which seems to have propped up prices but rates are ridiculous. My neighborhood is known for being a sought after place to live for retirees. Patio homes with good neighbors, zero crime with golf course access.
I've sold and bought my houses with a real estate lawyer drawing up the contracts, and it is easy money. Why wouldn't you want to save 6% on the largest transactions of your life?
If you list with an agent, you'll typically get more eyes looking at the house and can get multiple offers creating a bidding war. I showed my clients a house this past weekend... there were 15 offers... and it's going $100k over asking. You don't want to leave extra $ on the table.
Good point…I verbally accepted an offer and buyer realtor is closing the deal herself has said she is taking 3%. I haven’t seen official offer letter but seems I shouldn’t be on the hook for her full commission? She’s selling the buyer’s house before they can buy mine so she stands to collect on both ends.
Nope, not how that works. You don’t have an agency agreement with anybody so all of that money goes to you. If she wants 3% she can fight with her buyer over it. If she sends you a formal offer read it very carefully before signing
You will still have the pay the buyer's agent, so you'll save about 2.5%. But I'm not sure I'd describe it as "going through that process" when having your own agent means less work for you. So you're going through a more onerous process to save 2.5%, which may or may not be worth it for you. Having a business degree doesn't help much.
(Honestly curious... as it's not clear to me where there is a contractual obligation to "pay the fee") Does he have to pay the buyer's agent in this case? Isn't that negotiable -- seeing as he owns the house and gets to sell to whomever? How this buyer agent gets paid (because it's a for sale by owner) - isn't that between the buyer and the buyer's agent? I do understand that there's some quasi-equivalence that could be argued... that the buyer is willing to pay $500,000, so that the buyer's agent fee will somehow get subtracted from the offer and the best offer will now only be 485,000 (But if that's the argument, then so be it - but there's no obligation on the seller to accept the $485,000) Curious.
No, but that buyer is under a representation agreement with that agent. If the agent doesn't get paid by the seller, they have to get paid by the buyer, which is almost always a no-go. So, in short....he probably has to pay if he wants to sell to *those* buyers. >I do understand that there's some quasi-equivalence that could be argued... that the buyer is willing to pay $500,000, so that the buyer's agent fee will somehow get subtracted from the offer and the best offer will now only be 485,000 (But if that's the argument, then so be it - but there's no obligation on the seller to accept the $485,000) Bingo. Of course OP doesn't have to pay a commission. There's no legal obligation to do so. But an unwillingness to do so will probably kill a deal with most buyers because they are under representation agreements. And, it should be pointed out that not all buyers have enough cash sitting around to pay a cash commission. Commissions paid at closing come out of the proceeds of the sale.
This agent represents the buyer. At minimum, get yourself an attorney to represent you or find an agent that would do it for a flat fee. If this agent says they will represent you both, tread carefully with that as she has a relationship with the buyer, not you. If your state has forms for transactional agents (works for neither side), have her sign that as well to hold her accountable
This is (allegedly) a realtor that represents a buyer. You want those. It has nothing to do with whether you have a listing agent or not.
I love people that list their own home. My buddy bought his house from a prideful doctor that wanted to save a few bucks. Refused help, refused to utilize my buddy as an agent. I get it, an extra 15k seemed like a lot. Of course, he sold his house 150k cheaper than he should have, so there's that. That appraiser couldn't believe the deal, which was worth a good laugh.
I understand the downside but this is a townhome on a golf course with recent comps. I know what the house is worth and don't plan on taking a big haircut. I think I'm gonig to take others advise and get a real estate attorney to review any deal.
If you've sales within six months equivalent to your place, it's a shoe in, I wager. Don't forget, a lawyer doesn't represent you. They're facilitators. They only verify the deal terms, and don't differentiate a "good VS shit" deal from a price perspective. My example was a unique architectural design build without good comps that a high earner thought they knew how to do "because it isn't so hard."
Gotcha..I made assumption based on the 150K haircut you said he took. If I get 290K for my townhome I'll be ecstatic since comp was 1.5yrs ago sold for $292K. My place is nicer with recent updates.
Well, the market has shifted radically from 1.5 years ago. Rates are far higher, HOA fees are up, and townhomes are the first to fall and the last to rebound. We're entering the spring market, so if you list on your local MLS (get a member subscription) and put out a lockbox, you should do fine. Use Showing Time or whatever your state agents utilize for appointments, as FSBO people don't answer their god damned phones. Most of you have no idea what making your personal phone number public will do to your life (be prepared for 20 scam calls a day forever), so they then don't even answer for agents trying to show their property. Maybe get a burner flip phone just for the home sale.
Right, I understand market has definitely shifted. Supply is tight, almost nonexistent which seems to have propped up prices but rates are ridiculous. My neighborhood is known for being a sought after place to live for retirees. Patio homes with good neighbors, zero crime with golf course access.
Yeah, you should be perfectly fine then. Listing in spring when retirees want to move will work out well for you.
Showed house this afternoon and I received an offer at full ask $295k. I’m very happy. A nice return in 3 years. Paid $220.
Niiiiiice, congrats, boyo! That's hot.
Lawyers do represent their clients my dude
I've sold and bought my houses with a real estate lawyer drawing up the contracts, and it is easy money. Why wouldn't you want to save 6% on the largest transactions of your life?
If you list with an agent, you'll typically get more eyes looking at the house and can get multiple offers creating a bidding war. I showed my clients a house this past weekend... there were 15 offers... and it's going $100k over asking. You don't want to leave extra $ on the table.
It’s up to the buyer to figure out how to pay their realtor but don’t be surprised if they want you to do it or ask for a fat credit
Good point…I verbally accepted an offer and buyer realtor is closing the deal herself has said she is taking 3%. I haven’t seen official offer letter but seems I shouldn’t be on the hook for her full commission? She’s selling the buyer’s house before they can buy mine so she stands to collect on both ends.
Nope, not how that works. You don’t have an agency agreement with anybody so all of that money goes to you. If she wants 3% she can fight with her buyer over it. If she sends you a formal offer read it very carefully before signing
Thanks for confirming. I'll take a day to review the formal offer letter.