Buying without a broker

[NYer]

Assume for the sake of answering this question that we intend to buy a home by, say, the end of August, that we have made that decision knowing all of the opinions to the contrary, and that it is the best decision for us. That is, this post is not a “should I buy” post to which the answer would undoubtedly be “no.” This post is an inquiry into the benefit — or lack thereof — of using an agent to buy.

Assuming I know the neighborhood I want to buy in, and I have been monitoring the market there, what benefit to using an agent provide to me that would be worth the 2-3% commission plus the hassle of adding another intermediary?

[sdappraiser]

What?

[sdappraiser]

What?

[sdappraiser]

What?

[sdappraiser]

What?

[sdappraiser]

What?

[SD Realtor]

You have labelled your agent as another intermediary although this intermediary would most likely be your strongest ally. Additionally while you may infer that you will be saving 2-3% in commission in many cases this is not true. In many cases the result will be that the listing broker simply gets the CBB (the cooperating commission) so while you think you saved 2-3%, in reality you did not. Now the converse to the argument is that if the listing agent is going to represent both sides they will most likely fight hardest for your offer since they will make a good haul. You can even leverage them with that knowledge. So if you do submit the offer and agree to dual agency you can ask them what the CBB is that they will be getting. You can thus lower your offer by that amount perhaps. Another alternative is to submit the offer without representation and make it clear you are not being represented. Again, you can submit the offer 2-3% less then you would have with an agent and provide a letter explaining your stance.

As far as what the benefits are to having a buyers agent… I guess my advice would be to ask family or friends. I have found that convincing people of the need for a buyers agent is not worth the time. There are brokers (who give good personalized service) and who also offer cash rebates or credits of portions of the commission so that may be a good compromise as well. There are more detached organizations like redfin or zip that do the same but are not as personalized. My recommendation would be to talk to a few of each type, see what they can do for you, then decide.

SD Realtor

[SD Realtor]

You have labelled your agent as another intermediary although this intermediary would most likely be your strongest ally. Additionally while you may infer that you will be saving 2-3% in commission in many cases this is not true. In many cases the result will be that the listing broker simply gets the CBB (the cooperating commission) so while you think you saved 2-3%, in reality you did not. Now the converse to the argument is that if the listing agent is going to represent both sides they will most likely fight hardest for your offer since they will make a good haul. You can even leverage them with that knowledge. So if you do submit the offer and agree to dual agency you can ask them what the CBB is that they will be getting. You can thus lower your offer by that amount perhaps. Another alternative is to submit the offer without representation and make it clear you are not being represented. Again, you can submit the offer 2-3% less then you would have with an agent and provide a letter explaining your stance.

As far as what the benefits are to having a buyers agent… I guess my advice would be to ask family or friends. I have found that convincing people of the need for a buyers agent is not worth the time. There are brokers (who give good personalized service) and who also offer cash rebates or credits of portions of the commission so that may be a good compromise as well. There are more detached organizations like redfin or zip that do the same but are not as personalized. My recommendation would be to talk to a few of each type, see what they can do for you, then decide.

SD Realtor

[SD Realtor]

You have labelled your agent as another intermediary although this intermediary would most likely be your strongest ally. Additionally while you may infer that you will be saving 2-3% in commission in many cases this is not true. In many cases the result will be that the listing broker simply gets the CBB (the cooperating commission) so while you think you saved 2-3%, in reality you did not. Now the converse to the argument is that if the listing agent is going to represent both sides they will most likely fight hardest for your offer since they will make a good haul. You can even leverage them with that knowledge. So if you do submit the offer and agree to dual agency you can ask them what the CBB is that they will be getting. You can thus lower your offer by that amount perhaps. Another alternative is to submit the offer without representation and make it clear you are not being represented. Again, you can submit the offer 2-3% less then you would have with an agent and provide a letter explaining your stance.

As far as what the benefits are to having a buyers agent… I guess my advice would be to ask family or friends. I have found that convincing people of the need for a buyers agent is not worth the time. There are brokers (who give good personalized service) and who also offer cash rebates or credits of portions of the commission so that may be a good compromise as well. There are more detached organizations like redfin or zip that do the same but are not as personalized. My recommendation would be to talk to a few of each type, see what they can do for you, then decide.

SD Realtor

[SD Realtor]

You have labelled your agent as another intermediary although this intermediary would most likely be your strongest ally. Additionally while you may infer that you will be saving 2-3% in commission in many cases this is not true. In many cases the result will be that the listing broker simply gets the CBB (the cooperating commission) so while you think you saved 2-3%, in reality you did not. Now the converse to the argument is that if the listing agent is going to represent both sides they will most likely fight hardest for your offer since they will make a good haul. You can even leverage them with that knowledge. So if you do submit the offer and agree to dual agency you can ask them what the CBB is that they will be getting. You can thus lower your offer by that amount perhaps. Another alternative is to submit the offer without representation and make it clear you are not being represented. Again, you can submit the offer 2-3% less then you would have with an agent and provide a letter explaining your stance.

As far as what the benefits are to having a buyers agent… I guess my advice would be to ask family or friends. I have found that convincing people of the need for a buyers agent is not worth the time. There are brokers (who give good personalized service) and who also offer cash rebates or credits of portions of the commission so that may be a good compromise as well. There are more detached organizations like redfin or zip that do the same but are not as personalized. My recommendation would be to talk to a few of each type, see what they can do for you, then decide.

SD Realtor

[SD Realtor]

You have labelled your agent as another intermediary although this intermediary would most likely be your strongest ally. Additionally while you may infer that you will be saving 2-3% in commission in many cases this is not true. In many cases the result will be that the listing broker simply gets the CBB (the cooperating commission) so while you think you saved 2-3%, in reality you did not. Now the converse to the argument is that if the listing agent is going to represent both sides they will most likely fight hardest for your offer since they will make a good haul. You can even leverage them with that knowledge. So if you do submit the offer and agree to dual agency you can ask them what the CBB is that they will be getting. You can thus lower your offer by that amount perhaps. Another alternative is to submit the offer without representation and make it clear you are not being represented. Again, you can submit the offer 2-3% less then you would have with an agent and provide a letter explaining your stance.

As far as what the benefits are to having a buyers agent… I guess my advice would be to ask family or friends. I have found that convincing people of the need for a buyers agent is not worth the time. There are brokers (who give good personalized service) and who also offer cash rebates or credits of portions of the commission so that may be a good compromise as well. There are more detached organizations like redfin or zip that do the same but are not as personalized. My recommendation would be to talk to a few of each type, see what they can do for you, then decide.

SD Realtor

[fsbo]

I fully agree with SDR; “In many cases the result will be that the listing broker simply gets the CBB (the cooperating commission) so while you think you saved 2-3%, in reality you did not. “.

Even for brand new house, if you don’t have buyer agent, the listing agent will eat up buyer’s 2~3%.

I would recommend, as a buyer, take an agent with you, negotiate a good split of the commission; As a seller, do your homework, get it listed while reserve 2~3% for buyer agent, and make it FSBO.

[fsbo]

I fully agree with SDR; “In many cases the result will be that the listing broker simply gets the CBB (the cooperating commission) so while you think you saved 2-3%, in reality you did not. “.

Even for brand new house, if you don’t have buyer agent, the listing agent will eat up buyer’s 2~3%.

I would recommend, as a buyer, take an agent with you, negotiate a good split of the commission; As a seller, do your homework, get it listed while reserve 2~3% for buyer agent, and make it FSBO.

[fsbo]

I fully agree with SDR; “In many cases the result will be that the listing broker simply gets the CBB (the cooperating commission) so while you think you saved 2-3%, in reality you did not. “.

Even for brand new house, if you don’t have buyer agent, the listing agent will eat up buyer’s 2~3%.

I would recommend, as a buyer, take an agent with you, negotiate a good split of the commission; As a seller, do your homework, get it listed while reserve 2~3% for buyer agent, and make it FSBO.

[fsbo]

I fully agree with SDR; “In many cases the result will be that the listing broker simply gets the CBB (the cooperating commission) so while you think you saved 2-3%, in reality you did not. “.

Even for brand new house, if you don’t have buyer agent, the listing agent will eat up buyer’s 2~3%.

I would recommend, as a buyer, take an agent with you, negotiate a good split of the commission; As a seller, do your homework, get it listed while reserve 2~3% for buyer agent, and make it FSBO.

[Author]

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