(Another) Home Purchase Question

[CaboWabo]

I will probably be making an offer on a home in the next few days. Currently, I have been looking at the home directly with the listing agent. As part of this transaction, I am going to sell my current home.

By dealing directly with the listing agent, that listing agent will (if the sale goes through) get her full sale commission on the house as I do not have a buyer's agent. If I list my house with that same agent, I'm thinking I should get a discount on the normal 6% commission that the seller pays.

Would it be reasonable for me to expect such a discount related to the sell of my house? What discount amount should I ask for...2%, 3%, 4%? Finally, when should I bring this up to the listing agent..before or after I make an offer? My initial thought is before because if she says no discount, I'll go find a buyer's agent and attempt to cut the same deal. Am I on the right track here? Thanks in advance for the feedback.

 

[busterbrown16]

First question is - do you have a contract? That would provide the parameters.

If not, then you can feel free to negotiate whatever deal you want. If I read your post correctly, you are buying a home from the seller's agent and then using the seller's agent to sell your home. So, in essence, for walking into that person's life, they are getting 3% off one sale that they did not originally intend to get (they banked on the 3% as the seller's agent) and then an additional 3% for acting as the seller's agent on your home. Quite a deal.

I would definitely see if they would lower their commission on the sale of your home to at least 1.5%. There are other options you can pursue with regard to buying the home and the commission on that as well. PM me if you want to discuss those.

 

[jimmyjazz]

It's probably not too late to get a buyer's agent, although it is something most listing agents frown on, for obvious reasons. That said, I don't think you have the obligation to them they like to imply that you do. Furthermore, you could probably find your own realtor who would rebate 2/3 of their cut to you on the purchase AND maybe even a bit of their cut on the sale of your home, should you use them for both sides of the deal.

My decision to get a buyer's agent would probably hinge on what discussions I've had with the listing agent. I"m not real big on breaking "promises" (real or inferred).

 

[zzzz]

I think you should be able to negotiate a discount.

However, I don't think you should mention the possibility of using the realtor to sell your home until the seller has agreed to your offer. Otherwise, there is a strong conflict of interest between the interests of the realtor and the seller.

 

[CaboWabo]

I do not have a contract with her and haven't made any "promises." My thought of bringing this up before making an offer is that if she says no to the discount on selling my current home, then I go get a buyer's agent and try to cut a deal with them.

If I make an offer on the home and it is accepted, and then bring up the discount issue and she says no, then my bargaining position is gone and I have nothing to offer another realtor in exchange for a discount.

As for conflict if interest, I'm not seeing one there.

I don't want to ruffle any feathers, just a little love for me generating business.

 

[voteforhank]

Real Estate Broker here.
I would be frank and to the point with the listing agent of the home you intend to buy. Tell him (or her) what you think. Do not do this after you write a contract, or you will lose your bargining power. Times are tough for Real Estate agents also, some money is better than no money. Make the sale of the house you want to buy, contingent on her selling your house for nothing on her side of the transaction. She will take that deal. I sure would in these tough times.

 

[madscientist]

if you ask the agent to take a lower fee to list your home is not a good idea, IMO. they have to split that commission with the buyers agent, and those agents would steer their clients away from your home and to other homes where the full 3% fee is available to them. most agents only sell 0-2 homes per month so they need their commissions to live.

my proposal to the agent would be this: take 3% commission on the home you are buying, put the other 3% towards seller paid closing costs or lowering the sales price, and they get to list your house for the standard 6%. that way the agent gets the usual3% and a new listing, the seller feels no difference but gets the home sold, and you get a bit of a break on price.

 

[madscientist]

from another thread on this board:

In reply to:

---

---