What fee arrangements are possible with a buyer's realtor?
I will be selling my home and buying a retirement home in the next two years. Finding a selling realtor is going to be easy. My house is in a desirable location where houses sell quickly, and I'll be able to research realtors with knowledge of our neighborhood..
I have no problem with moving into a rental for awhile after my house sells. I will be a cash buyer, no matter when I buy. My preference is to sell my house first, but I plan to start working with a Buyer's realtor after the house is listed. I'll be weighing condos, new construction and renovations of small houses.
It seems to me that Buyer's commissions based on price have a conflict of interest. Wouldn't a Buyer's realtor want a buyer to spend as much as possible to get the biggest commission? Where is the motivation to help Buyers save money and find lower priced options?
Are there Buyers Agents who provide fee-based services, instead of being compensated solely by commission? How does that work?
- loanmasteroneLv 77 years agoFavorite Answer
In order to find a buyer agent that you would be happy with you would need to sit with several real estate agents,interview them, see if you are compatible with each other.
Find out from this real estate agent if they work in the area you would want to purchase. This real estate agent should know the area, schools, shopping centers, local mom and pop stores you would have in the neighborhood, churches and grocery stores, cleaners and other things you would need to know about the neighborhood.
Normally the selling agent would have a contract with the commission already established to be split between the selling agent and the buyers agent. You would want to beware of buyers agents that have in their contract that if a certain commission is not obtained, you as the buyer would be required to compensate the difference to your real estate agent.
Normally there are no other fees in most real estate buyer's contracts.
I hope this has been of some benefit to you, good luck.
- linkus86Lv 77 years ago
A good buyers agent is not interested in price at all, and is motivated by providing the best service to their client to gain repeat business and referral's. This is the difference between a career agent and a temporary sales person or someone licensed and working part time. Much of a career agents business comes from repeat clientele and referrals as is the case of most career sales people in any industry.
And remember, you the buyer is not paying their commission when buying a listed property. If the agent doesn't receive a coop share of the commission, the listing agent just keeps it all for themselves. So agents don't tend to offer fee based services on the buying side of the transaction because it offers no value to the client.
- teran_realtorLv 77 years ago
I have never heard of a "Fee based Buyers Agent" - Fee Based is usually associated with selling agents. From what you describe, you'll do better anyhow with a buyers agent getting a commission - you describe looking for a long time, with no set "target type of propery" in mind yet. As a buyers agent myself, I know that this kind of buyer runs me ragged and I end up doing far more work than they were worth. If I charged by how much work goes into it, they would pay far more.
Secondly - also as a buyers agent - I would prefer you buy a $150k property and be happy with my service and tell your friends about it - than buy a $170k property and be unhappy or even slightly suspicious that I drove you up in price. And if you know that you'll be spending within a tight range, (example $150k-$155k) the differnence in commission is so negligible that it just does not matter.
- dog maLv 77 years ago
If you are staying in the same area, and you find an agent you like and want to list your home with, why not ask him or her to represent you in the purchase of your new home as well?
There is not enough difference in the price of a home to for an agent to try to get their buyer to spend more - everyone has a price range, and you have to work within it. Most buyer's agents are compensated technically by the listing broker as part of the commission that they receive from the seller.Source(s): Real estate broker, landlord
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- godgedLv 77 years ago
There are agents out there that are going to try to get you to spend as much as possible, but fortunately, the market usually weeds those people out of the profession. In my area, there are no fee based buyer's agents any more.
My job is to get my client the best deal I can. The difference in my check is never enough to get you to overspend for a property.
You might be able to negotiate commission more effective by giving one agent both your listing and your purchase transaction.Source(s): Oregon Realtor
- Anonymous7 years ago
First off ...If you're in area where houses sell fast and easy.. I'd recommend selling it by yourself, and save that 6% realtor fee. If a realtor does bring you buyer then you can pay them only a 3% commision. Selling a home is easy if you're in a desired area, and once you have a buyer. You just fill out a "Contract to Purchase" and take it to the closing company, and they pretty much handle the rest.
I usually don't recommend signing a contract with a Realtor as a buyer. Do your own shopping, and if you see something you like.. Call the realtor that has the listing. Having two realtors trying to make money off of one property makes it harder for you to get a better deal on the property.
Since you have internet.. You can find all the listings just as easy as any realtor can.
- BillLv 77 years ago
If you will be buying your new home in the same area or city as your current home, you can use the same agent for both transactions and should be able to negotiate a better commission rate. Good Luck