Visiting Open Houses Without An Agent

My wife and I were visiting open houses this weekend without an agent and some of the sellers said they could give us a break on the price or a rebate on their commission if we decided to put in an offer without an agent. Is this generally recommended? I don't see the benefit of using my own agent when I've already decided on the houses I want to see and price I want to come in at. Thoughts?

most people would recommend you have someone on your side to represent your interests in the transaction, whether it be price negotiation, terms, contingencies, etc.  however, if you've been around the block a couple times and you're comfortable without an agent you may use that as something that sets your offer apart.  at the very least, i would have a real estate attorney look everything over.

One issue using the dual agent and getting a ?reduced? price is that you will never know if you are getting a deal or not. Because you will never know if they would have accepted a lower offer if you had your own agent. I guess if your net price per sq ft is lower than comps you may consider that a deal, but you may have gotten the same price with an agent that represents you. There is a certain peace of mind having a really good agent like USC to answer any questions or address any concerns. You may not be willing to push as hard on certain things because the sellers agent is also your agent.

Find an agent that will provide you a rebate on the commission he gets.  Generally the buying agent gets 2.5%, but you can find ones that will rebate 1.5% (or more if you truly only need him to extract the commission).  When looking for this type of agent, make sure he is affiliated with a flat fee brokerage or he is a broker himself.  Any agent affiliated with a brand name brokerage will not be giving this high of a rebate back.

woodburyowner said:

Find an agent that will provide you a rebate on the commission he gets.  Generally the buying agent gets 2.5%, but you can find ones that will rebate 1.5% (or more if you truly only need him to extract the commission).  When looking for this type of agent, make sure he is affiliated with a flat fee brokerage or he is a broker himself.  Any agent affiliated with a brand name brokerage will not be giving this high of a rebate back.

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Very true, because those brokers have a hand in their agent's pocket and that is why I work under a broker who charges a flat tiered fee per transaction.

Kings said:

most people would recommend you have someone on your side to represent your interests in the transaction, whether it be price negotiation, terms, contingencies, etc.  however, if you've been around the block a couple times and you're comfortable without an agent you may use that as something that sets your offer apart.  at the very least, i would have a real estate attorney look everything over.

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There really isn't a need for a real estate attorney as all of the real estate CAR form documents are boilerplate.  The focus has to be on the terms of the contract (price, days to close, downpayment, which side covers what fees, what is included/excluded from the sale, occupancy/rentback terms, contingency period, waive any contingencies, etc).  I've advised several folks who haven't used me as an agent free of charge.  Good karma is ultimately my payment down the road. 

USCTrojanCPA said:

Kings said:

most people would recommend you have someone on your side to represent your interests in the transaction, whether it be price negotiation, terms, contingencies, etc.  however, if you've been around the block a couple times and you're comfortable without an agent you may use that as something that sets your offer apart.  at the very least, i would have a real estate attorney look everything over.

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There really isn't a need for a real estate attorney as all of the real estate CAR form documents are boilerplate.  The focus has to be on the terms of the contract (price, days to close, downpayment, which side covers what fees, what is included/excluded from the sale, occupancy/rentback terms, contingency period, waive any contingencies, etc).  I've advised several folks who haven't used me as an agent free of charge.  Good karma is ultimately my payment down the road. 

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Good Karma goes along way. That?s the reasons why all your homes are HOT listed on Redfin, congrat. Ha ha

I'm old school, I would prefer to have my own buyer's agent who also will help me with a % of their commission (depending on how much legwork I do vs what they do).

Isn't there also some protection from CAR or something if you use an agent in case there is some issue with the transaction?

SenorIrvine said:

My wife and I were visiting open houses this weekend without an agent and some of the sellers said they could give us a break on the price or a rebate on their commission if we decided to put in an offer without an agent. Is this generally recommended? I don't see the benefit of using my own agent when I've already decided on the houses I want to see and price I want to come in at. Thoughts?

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Are you saying the seller is asking if you could buy without an agent or the seller's agent is asking that?

If the seller's agent is asking that, then I've seen that happen and it's usual they are trying to save money by not paying the buyer's agent fees. If you don't have an agent, it could be a positive thing that you can ask for discounts. After you do the math, if it's not really saving you money, then make sure to bring your agent. That way you have someone representing and backing you up.

If the seller himself is asking that, that's a little weird. I wouldn't even touch that home, for I heard there are some fishy open house places trying to collect people's information rather than really selling the home.

irvinehomeowner said:

I'm old school, I would prefer to have my own buyer's agent who also will help me with a % of their commission (depending on how much legwork I do vs what they do).

Isn't there also some protection from CAR or something if you use an agent in case there is some issue with the transaction?

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That's if both agents are Realtors but not all agents are Realtors. Everything is negotiable in real estate as long as all parties agree.