I'm a home buyer, not an agent. I know that buyer's agents typically get half the selling agent's commission. My question is very simple: If I found a house on my own, and am willing to do all the legwork, can I request the selling agent to pay me half the commission... i.e., act as my own buyer's agent?

Have you ever had surgery?....Did you ask the surgeon if you could close the incision yourself to get a discount...LOL

Seriously though...From fellow non Real Estate agent, I'd say whether you can or not...it sounds like a recipe for disaster and disappointment. Don't undervalue what is being done for you by trying to nickel and dime your way to home ownership. There's people are some of the hardest working, underappreciated proffessionals I have ever come across. Let the pro's handle it and enjoy your new home.

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Rich
Advertising, Marketing & Virtual Tours

Thanks very much for the response Rich. I guess you know you didn't answer the question, although I think I may have 'heard' a yes. I knew this would be an unpopular question in this forum, so your response was not altogether unexpected, but I'd still greatly appreciate an answer if any knows it (and I'm sure someone in this forum does).

By the way, when I bought my current house many years ago, the seller was a neighbor who we had known for years. I handled all the legwork and paperwork myself to complete the transaction, and while it was time-consuming and, at times, frustrating, it certainly was not brain surgery. Also, every homebuyer I know has described the process as "time-consuming and frustrating" even when they use an agent.

One other point, I am not talking about "nickels and dimes." The house I've found will sell for about $400K. 3 percent of that is $12K. That's no pocket change, and will nicely offset the 6% commission I'm going to pay an agent to sell my current $200K house. More importantly, if I find the house on my own (which I have) and handle all the legwork (which I've done before), why is that $12K not my money? Why should the selling agent get to keep it? H/she was ready, willing, and able to give it up to a buyer's agent who brought a qualified buyer to the table. That person is me, in this case. So again, my question is.... Can I (the homebuyer) request the selling agent to pay me half the commission, if I handle all the buyer's agent's responsibilities myself?



[This message has been edited by cobra9777 (edited 04-08-2004).]

I don't know what state you are located in but in the state of Georgia, in order to receive a commission you must be a licensed agent. However that doesn't mean you can't reduce your offer by that amount unless the house is currently listed with another agent.

Krista

First off the buyers agent very rarely gets a full 50% of the listing agents commission. The only way to find out what the actual percentage being offered to the buyers agent on that particular property is by being a licensed agent.

Also if you do not have an agent representing you more than likely that will mean more work for the listing agent because they will have to manage both sides of the transaction essentially.

In summary, can you ask for 3% to be paid to you somehow more than likely by taking it off of the purchase price or some other way, probably (unless you already have an accepted offer then you are under contract and the negotiating is over and you will pay what you offered). Will you get it? Maybe you will, or maybe you'll offend the seller and blow the transaction.

Good luck!

Krista, thanks very much for the response. I'm located in Texas. I suspected someone would play the 'you need a license' card. However, in this case, I'm not asking a seller or a buyer to pay me a commission as an agent. The seller has already struck a deal with the selling agent to pay 6%. I want to ask the selling agent to split the 6% with me in exchange for not having to do the legwork of the buyer's agent. I don't think that scenario constitutes 'collecting a commission' from a buyer or seller. I think it is simply an agreement between myself and an agent.

Also, I don't think I can reduce my offer by that amount because the house is already listed with a selling agent. If there are two offers on the house... one for $400K with a buyer's agent who gets 3%, and mine for $388K and no buyer's agent, the seller is still going to take the $400K offer even though the selling agent would clearly be better off with my offer. I'm assuming the selling agent is obligated to act in the best interest of the seller in such a case.

But, now let's assume my offer is slightly better at $403K and also specifies that I am to be paid the 3% in lieu of a buyer's agent. The seller will take my offer. The selling agent is slightly better off than the competing offer. And I'm certainly better off because my net cost on the house is about $390K. Win-Win-Win.

I can't be the first person on the planet to think about this. Am I?

Hello,

What does the agent involved in this transaction have to say, have you approached them with this scenario yet?

I would give a quick call to the real estate commission in your state and get a copy of the laws.

In some states what you are talking about is absolutely illegal no matter how you look at it.

You asked a question on this board and we are trying to help you with an answer. We really have nothing to benefit or lose by giving you incorrect information.



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Make it a great day!

Brian Rodgers, MBA
Brian Rodgers Seminars, Inc.
http://www.brseminars.com
1-800-339-8841

AndersonEdge, thank you very much for the response. I really appreciate it.

Quote:
"Also if you do not have an agent representing you more than likely that will mean more work for the listing agent because they will have to manage both sides of the transaction essentially."

That's my whole point. I am willing to manage all aspects of the buyer's side of the transaction, same as a buyer's agent would do. I have done it before. I am just asking to be compensated in exchange, same as a buyer's agent would be.

Quote:
"Will you get it? Maybe you will, or maybe you'll offend the seller and blow the transaction."

I'm struggling to understand how this might offend the seller. In the scenario I described above in my response to Krista, if my offer is better than the competing offers, and the seller is obligated to pay 6% no matter what.... how would my offer offend the seller?

I think the 'offended party' will be the selling agent, who - I'm guessing - love it when people don't have a buyer's agent because they get to keep the whole commission from the seller.

Brian, thank you very much for the response. I have not yet approached the selling agent with my proposal. I have thought it through, and I'm convinced it is a reasonable approach for all parties. But before I make my offer, I decided to talk to several people to find out if this is common, uncommon, likely to work, likely to fail, legal, not legal, etc... or if there is some better, more common approach that achieves the same objective.

I very much appreciate everyone's information and thoughts on this topic. As I said before, I knew it would be somewhat unpopular for this forum, but I figure if anyone knows the answer, it's you.

Hi Cobra,
I hope you didn't take offense to my response in some way but I must admit, although not a licensed Real Estate agent, I get similar scenarios proposed to us all the time by a client who wants to do this part or that part of our job in return for a reduction in fees. I learned long ago that this almost never has a happy ending and don't get involved with that kind of stuff anymore. Unless the seller is a friend of yours again, he may start looking for another buyer...I know I would

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Rich
Advertising, Marketing & Virtual Tours

While I don't condone what you are doing, you may be able to proceed that you want a "buyers rebate" in the transaction. You better make a very convincing argument in justifying how much you want, though. And this will be disclosed, so some red flags will raise - be prepared in being able to address this down the line.

A cleaner method will be to ask for seller assistance instead.

-- Kane

[This message has been edited by narf (edited 04-08-2004).]

I wasn't very clear on my response.

You essentially want to pay 3% less for the house than what a buyer who has representation would. Thats ok.

Unless the agent agrees to cut their commission (which I don't belive you really have a right to negotiate as the commission is between the seller and the listing agent) you would just need to offer less which you've stated that you don't want to do because it will make your offer look less appealing.

My advice is to talk it over with the agent in question, to do this the way you are describing you'll need to have his or her cooperation. If the agent likes what you have to say, good for you maybe it will be win win all around, if they don't then you're not any worse off (unless you really wanted the property in which case you should have just make your best offer and hope you get it).

Instead of looking for a 3% rebate or payment or anything from the house your looking to buy, why not just save yourself the 6% your gonna pay from selling your house and do all the legwork on your own house? Just my .02

Rich, thanks again for the response. No offense taken. I appreciate all input on this question.

Quote by Rich:
"Unless the seller is a friend of yours again, he may start looking for another buyer...I know I would"

Again, I don't understand how my proposal might offend the seller. The seller is completely unaffected. The deal is between me and the seller's agent. The seller has already agreed to pay the agent 6%. If my offer, in terms of selling price, is acceptable to the seller, that should be all h/she cares about. You are the second person to mention this, so if there is some other aspect to my proposal that might offend the seller, and which I am overlooking, please clarify. Thanks.

Quote by Narf:
"...you may be able to proceed that you want a "buyers rebate" in the transaction. You better make a very convincing argument in justifying how much you want, though. And this will be disclosed, so some red flags will raise - be prepared in being able to address this down the line."

Hi Kane, thanks very much for the response. Could you please elaborate on what you mean by "buyer's rebate." Is that a standard industry term for what I'm proposing? Or does it refer to some similar, but different, scenario? Also, what do you mean about "red flags down the line"? Thanks again.