I know about the 2.4% they earn from the total cost of the house if you decide to have an agent represent you ( the 2.4% is paid by the homeowner not the person wanting to buy the house ). But instead of going through an agent one would think that an offer of -2.4% of whatever the asking price should be accepted right?

Every agent ive spoken to says this doesnt matter, which personally I think is a load of shit and not to mention every agent ive spoken with here in Raleigh have no incentives whatsoever( reimbursements of $ or upgrades )

My mom has bought 3 homes in her lifetime and Ive been there to translate and whatnot and know the whole deal about buying a house. I think I scare the agents when I talk about this and they get all defensive and whatnot but I come here to ask what are the benefits of an agent other than having them go through the hassle of presenting an offer with the broker.

3/31/2007 4:45:55 PM

The general public thinks that but it is simply not true.

When you sign a listing agreement to list your house generally the comission paid is fixed at a certain percent. The seller is not technically paying the buyer agent, the listing office is.

For instance

A house is listed at 6% with ABC realty
ABC realty offers a co-broker comission of 2.4%
If XYZ realty brings a buyer agent who sells it they get 2.4% and ABC gets 3.6%

If John Doe walks in and negotiates on his own, ABC gets 6%

There are of course exceptions to this but thats usually how it works.

3/31/2007 4:52:24 PM

ah ok, so how does one find out if this is the case... other than asking the homeowner


and what about the incentives?

I found the house, All the agent has to do is present the offer and do a walk through of the house.
My mom has bought houses before and they've given her incentives, whether it be cash or upgrades.

3/31/2007 5:07:39 PM

^^That's generally not true. I'm a real estate paralegal and we do closings all day long. If a homeowner chooses to go without a real estate agent, the seller will not end up paying their agent 6%. There's generally a contingency or an agreement if the house is bought by someone who is not represented by an agent bc no homeowner in their right mind would pay a real estate company 6% if both sides are not being represented by agents. OneNighter, you're right. And most homeowners will be more willing to negotiate with a lower price due to that percentage because they won't have to pay your realtor that if you don't have one.

[Edited on March 31, 2007 at 5:11 PM. Reason : up]

3/31/2007 5:09:28 PM

The thing is, the homeowner in this case is represented by an agent. I called said agent and she sticks me with another agent. They both work for the same broker.

3/31/2007 5:13:18 PM

they're both trying to make money off of it if they come from the same company, tell her you don't want to be represented by an agent- you don't have to be. are you sure she didn't pass you off to a closing coordinator, i.e. his/her assistant?

[Edited on March 31, 2007 at 5:14 PM. Reason : .]

3/31/2007 5:14:30 PM

The guy she passed me off to was an agent. He gave me his card and everything.

Really nice old guy. Went to the same H.S as I did.. back in the 60's.

But when I asked him what incentives he had, he started talking about what he does for the process.. which I know for a fact isnt as hard as he made it to be.

3/31/2007 5:16:34 PM

nope just tell him you don't want a buyer's agent aka selling agent, which is what he is and that you want to buy the house by yourself. did he make you sign anything?

3/31/2007 5:17:51 PM

No, of course not. I wouldnt sign anything that I havent read and understood.


The thing is, if str8bardi is right... than the buying agent would make some money off me for nothing.


If you know of any realtors that have incentives refer them to me. I know they're out there.

Ive talked to my mom and were looking about at an offer of 138k for the townhouse

3/31/2007 5:21:22 PM

without reading this thread, huggard of bus 225 said you always get a realtor

hope that helps

3/31/2007 5:22:39 PM

We got lucky, the selling agent owned the house we just bought. He immediately knocked off the 3% commission or whatever he didn't have to pay because we didn't have an agent. There is no reason why they can't do it, they just want more money.

3/31/2007 5:23:47 PM

no, you don't always need a realtor, but it makes my job a helluva lot easier when it comes to doing the closing.

pm sent ^^

3/31/2007 5:24:26 PM

the realtor acts like a mock lawyer... which I dont need because everything will go throught the bank which will protect my interest.

And with the inspection of the house theres nothing I wouldnt understand that I could personally bring up with the agent.


But if Str8bardi point is true.. then I should get a buyers agent who is willing to give some incentives.

3/31/2007 5:24:56 PM

what kind of incentives are you looking for? lower commission? seller pd closing costs?

3/31/2007 5:26:49 PM

http://www.internest.com/index.asp?souce=4&g=4&t=para&gclid=CMCdwqbXoIsCFRNUZQodkjvAkA

3/31/2007 11:22:56 PM

Quote :

"the buying agent would make some money off me for nothing."

I was able to find the exact place I wanted before I had a buying agent. I went ahead and got one anyway since the seller planned to charge me the same price either way. I'm buying new construction and my buyer's agent is going out there checking on it for me every week or so. He has seen flaws in new construction in the past and have had these changes corrected before drywall went up. Also, being a first time homebuyer, I thought it would be a good idea to have one to explain any detailed questions I had.

4/1/2007 1:27:09 AM

"question about Realtors" no agent

4/1/2007 8:43:23 AM

Quote :

"I was able to find the exact place I wanted before I had a buying agent. I went ahead and got one anyway since the seller planned to charge me the same price either way. I'm buying new construction and my buyer's agent is going out there checking on it for me every week or so. He has seen flaws in new construction in the past and have had these changes corrected before drywall went up. Also, being a first time homebuyer, I thought it would be a good idea to have one to explain any detailed questions I had."

pretty much the same reason i have one - buying in atlanta - getting updated pictures every week as it goes through construction as well as him walking through it pointing out any flaws to the builder

4/1/2007 9:30:55 AM

What gain does the seller have if it is an even trade for them? They either pay the % to your agent, or they knock that off the price of the house if you have no agent. In my opinion, if its a zero net gain, I would insist you go with the agent, to protect me as well. Often times it's a good idea for a seller to get a pre-approval with specific conditioning, and this can be handled pretty easily by a Realtor. As a seller, I think I would be more comfortable with a buyer who had an agent.

I worked for a Realtor association, and there is a big different between a regular real estate agent, and a person who can call themselves a Realtor.

In my opinion, you would be silly to do this without a Realtor, especially if you are the buyer and it won't cost you anything.

When we bought our house, the Realtor saved me enough time and effort to well justify the fee they got from the sale of the house. I would have rather paid what I did and have it wrapped up into the mortgage than had 1.5-2% off of the house price.

The Realtor hooked me up with a great inspection guy that has a good reputation (and even got me a 50% discount on inspection), looked out for my interests in the contract wording (spending the time to spell out what would be left and what wouldnt), following up on all of the repair lists before we moved in, etc....

4/1/2007 9:49:13 AM

Yeah one thing I forgot to mention is that even if the seller gets out of paying buyer agent commission when you don't have an agent (most likely he does not) that does not mean he is gonna pass those savings along to you.

That would be like going to a for sale by owner and claiming that since they don't have a Realtor they should discount the price (which is likely way too high) an additional 6% for you. They will respond that if they wanted to do that they would have hired a Realtor and kept their weekends free for going to the lake.

That argument is a very week negotiation tool, you are better off finding some things about the property and maybe your or their situation to use for negotiation leverage.

4/1/2007 10:09:29 AM

Quote :

"there is a big different between a regular real estate agent, and a person who can call themselves a Realtor."

which is?

4/1/2007 11:19:22 AM

I agree with everything Str8bacardi has said.


(although that means nothing on here)

btw, whether or not you think you know enough to be a realtor, they still have access to a lot more shit (i.e legal documents) than you do. It makes everything progress a lot smother when realtors work everything out.

[Edited on April 1, 2007 at 8:43 PM. Reason : my opine]

4/1/2007 8:37:24 PM

What if im going through a bank who will do all the legal aspects, inspections, etc...

the only stuff I would I would have to do is discuss what needs to be fixed before I move in.. and of course do the walk through

4/1/2007 9:24:28 PM

it sounds to me like you don't need an agent because you have already found the house, got a price and all that. You're pretty much correct that you did all the hard work for the agent already. The only thing is if things start falling apart between you and the seller over getting things fixed before you move in, having an agent to help in the negotiation helps. And when you say 'walkthrough' do you mean a home inspection? I would definitely recommend a home inspection.

4/1/2007 10:31:21 PM

here is the deal... you either have an agent or the other person brings a double agent
the only way to get around it is to have a friend that is an agent and gives you the $ back


i don't even think you can represent yourself if you are an agent.

4/1/2007 10:41:04 PM

yes you can, and you can collect a commission too.

4/1/2007 10:43:16 PM

^ wait.. what? come again?


does this affect anything if I decide to go through with the bank handling all my legal matters

4/1/2007 10:47:43 PM

i was saying yes you can to representing yourself if you are a real estate agent, and collecting a commission on it.

and sumfoo is wrong, you don't have to have an agent- no one HAS to have an agent. hence people finding houses on their own and handling everything on their own, and fsbo houses

4/1/2007 10:59:54 PM

What legal matters do you expect the bank to handle for you? Where are you gonna get your offer to purchase and contract? Or are you going to ask the sellers agent to provide all this for you? Even thought you dont want a dual agent.

You are trying to re-invent the wheel and its not going to happen. You are going to end up pissing off more agents than are willing to work with you.

Quote :

"I think I scare the agents when I talk about this and they get all defensive and whatnot"

4/2/2007 9:47:48 AM

Quote :

"Quote : "there is a big different between a regular real estate agent, and a person who can call themselves a Realtor." which is? "

Here are the 17 things a Realtor accepts as thier code of ethics when they join the NAR.

#1) Pledge to put the interests of buyers and sellers ahead of their own and to treat all parties honestly and fairly.

#2) Shall refrain from exaggerating, misrepresenting or concealing material facts; and is obligated to investigate and disclose when situations reasonably warrant.

#3) Shall cooperate with other brokers / agents when it is in the best interests of the client to do so.

#4) Have a duty to disclose if they represent family members who own or are about to buy real estate, or if they themselves are a principal in a real estate transaction, that they are licensed to sell real estate.

#5) Shall not provide professional services in a transction where the agent has a present or contemplated interest without disclosing that interest.

#6) Shall not collect any commissions without the seller's knowledge nor accept fees from a third-party without the seller's express consent.

#7) Shall refuse fees from more than one party without all parties' informed consent.

#8) Shall not co-mingle client funds with their own.

#9) Shall attempt to ensure that all written documents are easy to understand and will give everybody a copy of what they sign.

#10) Shall not discriminate in any fashion for any reason on the basis of race, color, religion, sex, handicap, familial status, or national origin.

#11) Expects agents to be competent, to conform to standards of practice and to refuse to provide services for which they are unqualified.

#12) Must engage in truth in advertising.

#13) Shall not practice law unless they are a lawyer.

#14) Shall cooperate if charges are brought against them and present all evidence requested.

#15) Agree not to bad mouth competition and agree not to file unfounded ethics complaints.

#16) Shall not solicit another REALTOR'S client nor interfere in a contractual relationship.

#17) Shall submit to arbitration to settle matters and not seek legal remedies in the judicial system.


If an actual Realtor breaks any of these, you have recourse against them through thier local association.

Also, an actual Realtor has side benefits like access to MLS, etc... that an average real estate agent doesnt.

I think you will be hard pressed to find a real estate agent who doesnt pay dues and belong to thier local association (and thus is a Realtor), because the backing there is so strong.

I may be incorrect, but i think the National Association of Realtors is the largest professional organization in the united states. I also think its the largest PAC on capital hill.

4/2/2007 10:03:54 AM

Quote :

"a bank "

Stop kidding yourself.

Banks are in the business of loaning money. They don't care if you get the perfect house, if it fits your needs, if you are happy with it down the road. They want to do your mortgage. I can promise you the loan officer is not going to attend your inspection and negotiate the repairs with the seller. They are not gonna provide you with a comparative market analysis of what you are buying compared with other sales in that neighborhood. They honestly will not give a second thought to whether you paid too much for the house as long as it appraises.

I think the reason you are having problems with your buyer agents is because you approach them not ready to listen to what they are going to do for you, all you want to know is how much of their commission you can pocket. You have done no research in who has a reputation of great service because you are too busy trying to nail down some cash back on your purchase.

My best advice to you would be to take the 180 hours of class required to get a RE license, pass the background check, pass the exam that has a 50% failure rate, make real estate brokerage your sole source of income for the next four years, learn how to negotiate every aspect of the buying and selling process, learn how to respond when the other party does not perform per the contract, learn what warning signs to look for when a sale is not on track, learn how to see if the lender is actually processing your loan or sitting on the file until the last minute, learn how to keep your clients from being stuck with everything they own in a moving truck and no where to sleep because that bank fucked up the loan prep and the closing wont happen for another week.

Do all of that then you can pocket 100% of your commission.

Just because your mother has not had any nightmares in the 3 home transactions she has participated in does not mean they don't happen all the time. Your home is the most important thing you own, it has a direct effect the quality of life for your entire family. Your home is also the most expensive thing you will ever buy or sell, its a huge investment and a mistake will cost you thousands and a lot of sleep.

4/2/2007 10:26:26 AM

I agree with Str8BacardiL, the money you will save by haggling out the commission and not getting an agent isn't worth it in the long run.

I know personally, I feel like the agent did way more than that amount of work, given that i never even had to take off of work at all.

4/2/2007 10:46:32 AM

Quote :

"They are not gonna provide you with a comparative market analysis of what you are buying compared with other sales in that neighborhood. They honestly will not give a second thought to whether you paid too much for the house as long as it appraises."

ive done this myself. I know how long its been on the market and how $ per sq ft sold compared to other houses.

If it means saving more than $1000 dollars, I will be there with the inspector and I will talk to the selling realtor agent and discuss what needs to be fixed.


Other than that, i dont see what needs to be done other than the walk through.

4/2/2007 12:56:09 PM

on average going FSBO in this market will cost you $3,600 (i did a huge analysis last year as an economic answer for 800 agents to use) as a seller and having/not having an agent won't change things on the buy side unless you really know and trust the seller, which isn't the case 95% of the time

whatever conspiracy theory you want to bring up, it's still a free market

4/2/2007 1:26:10 PM

Quote :

"Other than that, i dont see what needs to be done other than the walk through."

So go ahead and do it yourself. My agent said he only gets 1% out of the 2.4%, so I can certainly understand why agents you talk to won't offer you any incentives.

4/2/2007 1:35:10 PM

yeah that sucks that's the case most times because the rest of the check goes to whatever firm they're working for.

onenighter, you sound like you've already got your mind made up that you can do this by yourself, so just do it because like i already told you, no agent is going to provide you with any incentives like you were talking about- i.e. giving you $ out of their commission check.

4/2/2007 2:26:24 PM

OneNighter86 - do you walk into an electronics store where the employee gets commission on the sale and expect him to buy you a dvd player to go with your tv from his commission check?

4/2/2007 2:33:48 PM

ive done the work..the bank will take care of the rest.


My mom has done this before on a house that cost 500k where the 2.4% was 7k... and me and my mom had done all of the work. We got an agent who gave us back 3k in cash, 2k went to the broker, another certain percentage was paid in taxes and the agent pocketed the rest in a easy transaction where she did minimal work.

4/2/2007 3:00:07 PM

ALL of that sounds fishy. Like I said, no agent in their right mind would pay their buyer and they would have to get permission from their broker in charge to do it. It seems here that everyone's trying to give you advice and you're not really listening, you've kind of got your mind hellbent on this incentives thing, so if you want to waste your time looking for an agent that you think will do that, good luck.

I am on the phone w/a realtor and have consulted 4 today regarding this and they have all said they have never seen it happen. Sometimes discount brokerages will do it, but it's only a small percentage, and it wouldn't go back to you, it would go back to your mom. If you go with a discount brokerage, you'll probably regret it.

4/2/2007 4:54:02 PM

2.4% of 500K = 7K???

4/2/2007 5:03:21 PM

500,000*.024=12,000

4/2/2007 5:37:07 PM

Quote :

"My mom has done this before on a house that cost 500k where the 2.4% was 7k"

4/2/2007 5:45:10 PM

haha... something around there

a big portion of it went into paying off some taxes

4/2/2007 6:45:58 PM

Quote :

"haha... something around there"

You can't even do basic math, yet you want to skip on an agent. Good luck with that.

4/2/2007 8:26:03 PM

[Hijacking thread]

I'm in the market for a home right now. I don't have an agent yet. So far, we've just called the agent that's listing the home if we wanted to get a viewing of it.

My question is, what if that agent shows us the home and a few other homes. Is it "OK" for me to come back later with my own agent and use my own agent to purchase the home that the listing agent has shown been showing us? Or is that like a "jerk-off" move? Just wondering how all that real estate etiquette works.

[Edited on April 12, 2007 at 4:51 PM. Reason : hijack]

4/12/2007 4:50:14 PM

it's common.....but most likely they will ask you to sign some kind of buyer agency agreement that they are representing you before you view any properties...any smart agent would....no smart agent would waste time showing you homes only for you to use someone else in the end....

also agency law says if you purchase a home in which they showed you initially even if you use another realtor later, the original agent still gets commission

4/12/2007 4:53:30 PM

^^ It sounds like you talked to the seller's agent. It's normal for the buyer to have his own agent. If the sellers ask I would suggest you tell them you have a buyer's agent even if you don't already.

4/12/2007 5:09:28 PM