Serious newbie question on Irvine property we're interested in.

NEW -> Contingent Buyer Assistance Program
Trooper

Good question about the double ending. I usually wrote listings for 5% with 3 to selling agent, 2% to listing (me) and a total of 3% or 4% to me if I double ended it.

The commission savings went to the seller not the buyer. Remember in this case I am doing my best for my client-the seller. My job is to get the most money out of you for my client.

I did not try to double end since I think it is very hard to do correctly. It may surprise you that there is at least one ethical agent here!!!!!

When representimg a buyer I offered a % of my commission as closing costs back to them, totally legal, for signing a Buyer-Broker agreement. This way they had a financial interest in being loyal to me and I was not rushing them into a quick purchase since I know they would stick with me. The percentage was related to how much work they did as far as finding the property.

With most clients who were long time friends or referrals I would do this on a 'handshake". Win-Win!!

BTW I never believed in client letters. I would write a letter to the listing broker with the qualifications of my buyers and a recap of comps supporting my low price offer and explaining why they are not real smart if they don't accept our offer.

I do believe that you are likeable. Some of my best friends are LEO's and I would love to represent you if you want to retire to Arizona. LOL!! (thats where we agents are armed)

Enjoy!!
 
Chuck - I prefer to lowball knowing that the listing agent will lower their commission to the seller in order to make the sale. Exactly what the arrangement is between the agent and the seller, I don't care, nor is it any of my business. It is a contract between them. I have an real estate attorney look over all offers, counters, etc, before and at close of escrow which I find to be much less expensive than paying an extra commisson. I would use a buyers agent if I thought they had extraordinary negotiating prowness. I find just the opposite to be true for most agents and I think most agents will try to get you to pay more so they can close a deal.
 
First, I miss NIR, and her not posting here as much. Yes, I said it, and I mean it... I miss NIR and her insight. Don't worry, hell didn't freeze over, and the housing market has not hit bottom. But, I think having an on the street insight, from the likes of NIR and XLM, are a great addition to IHB. I would think, that many of the regular IHBer's would agree with me.

Disqualified buyers do develop reputations in the builder community and may have difficulty of doing future business.

This is soooo true, and probably even more so in this market. As people get laid off, or get offers from a competitor, they move on to other builders. So, the buyer who will be remembered, will not only have the possibility of coming across the same people, but they will have the possibility that other builders have warned them about so and so. They want serious buyers, and they will do anything to avoid someone who will waste their time.
 
Thanks to everyone who responded to my question about buying and/or viewing homes without an agent. It seems like there is no real benefit to NOT using an agent as a buyer if the commission will get paid regardless, and if the sellers may view you as a more qualified buyer if you come to them through an agent.

These days with Redfin and the other sources of information on the Internet it is pretty easy for a buyer to find out what houses are for sale in the neighborhoods that they are interested in, what the asking prices are, what the comps are, what the seller paid for the house and when, etc. And real estate forms are readily available as well. So, a lot of the prior barriers to entry to buying a house have been removed by today's technology, and a lot of the services that were previously provided by agents are not necessarily needed by an astute buyer. But the real estate agents still appear to have control of the ACCESS to the property (via lockbox or via appointment), which I guess I don't have a problem with...as xsocallandmerchant said above, no one wants unqualified strangers coming by and viewing their house.

The question now is this - should a buyer's agent receive a 2 1/2 to 3% commission for taking me to see a house that I found and presenting an offer that I came up with based on my own analysis? I don't think so.

It will be interesting to see what happens to the real estate agencies and commissions as technology continues to evolve and as the layperson's knowledge of what is involved in a real estate transaction continues to improve!
 
if you are capable of finding a property yourself, on this kind of market, sellers won't care whether you have an agent or not so much, they'd just be happy to see an offer. good luck!
 
Troop,

And BTW, I'm a very likeable person. People would jump through hoops to sell their house to me ! Right NIR ?!

Maybe, besides being a likeable person, you still have to convince a "smart" seller that you are worthy enough for them to take a risk on you . Remember, the law is in favor of buyer, not seller.

Have a great day, Troop.

NIR
 
Graphrix,

First, I miss NIR, and her not posting here as much. Yes, I said it, and I mean it... I miss NIR and her insight

You brought a smile to my face. Thank you so much. There are a few reasons I refrain from posting much; however, for one, I feel there is such a strong hostility toward realtors in general. And I am, being one, should just be a listener.

Now, I really want to tell you that your postings are impressive and informative. Your prediction of the mortgage casualties became a living nightmare reality for so many folks who were/are in the mortgage business. I am working largely with this group of folks now aday and I must say it's very sad, sad, sad.

Regardless how IHBers feel about realtors, I do think IHBers are a bunch of great folks with so much knowledge for me to learn from.
 
lawyerliz,

You could hire a lawyer to do the negotiating, and it would be much cheaper than 3%

Hello, you sound like a very cool lawyer. I wish I get to know more of your type around here.

As you know, in Southern California, we do not use lawyer to close real estate deal. Our real estate sales contract is bilateral; therefore, both sides should have equal representation to close. Ether FSBO/FSBO or Broker/Broke for fairness.

People say California is a sue-happy state. That is so true. So if a buyer wants no agent representation on my listings and my seller wants the buyer, I would have options for my selllers.
 
Yeah, I know. And you have what we think of as a weird closing system. I guess you guys think we are weird!!

In Florida, lawyers compete against title agencies and lots of times the lawyers own the agencies.

The agencies keep the lawyers honest fee-wise, and the lawyers keep the agencies honest title wise.

There are some southern states that refuse to let lay agencies close, which is great for the lawyers, but not so great for the people who have to pay high fees.
 
NIR

"There are a few reasons I refrain from posting much; however, for one, I feel there is such a strong hostility toward realtors in general. And I am, being one, should just be a listener."

Feel free to jump in more often. I need the back up. LOL

I feel that the feedback that one can pick up here could make one a better agent. This forum reflects a basic change in clients attitudes based on a better informed consumer as well as the use of techonology.

Chuck

"The question now is this - should a buyer's agent receive a 2 1/2 to 3% commission for taking me to see a house that I found and presenting an offer that I came up with based on my own analysis? I don't think so. "



If I were in your position I would set an amount that you feel comfortable with as a rebate to you based on what amount of upfront work you do and find an agent that is willing to work with you based on that amount. Some agents can't negotiate commission due to their broker's guidlines so you may have to do some searching. You may even want to offer a set dollar amount so you know the agent has no vested interest in you paying a higher price. Or offer a bonus based on the percentage you save off of listed price. There are lots of ways to structure these things to be win-wins.

Graphrix

You are correct about buyers being known within the industry. New home agents chat between competeing communities and would usually know of these people and even warn each other about them.

Enjoy!
 
Your prediction of the mortgage casualties became a living nightmare reality for so many folks who were/are in the mortgage business.

I can't help it.....

IR and Graph, et al.....TOLD YOU SO !

xx
 
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