The only way to say the seller pays the realtor is if you say the seller pays the realtor out of the buyers loan! That is not even correct the title company pays the realtor out of the buyers loan!
either way you look at it the buyer pays more to cover the realtors paycheck!
If not then $cash$ is right you should offer 6% less just so the seller can pay!
$cash$
the only time I have ever used a realtor is to buy a bank owned property here in Colorado all reo offers have to go thru a realtor!
What dictates fair market value or the list price? Answer - Recent sale comps.
Are majority of comps fsbos or Realtor listed? Answer - Realtor listed.
Is it fair to say then that market values and purchase prices for buyers are driven up in order to cover the built in Broker fees? Answer - Yes. It doesn’t matter which side of the Hud 1 it shows up on, the money still originated from the buyer’s pocket in order to meet purchase price.
A well informed buyer knows this and will deduct 6% from his offer.
What really sucks is when you have these “specializing in buyer representation” agents who do convince the buyer that the seller pays the commission so they can then charge the buyer 3% to represent them. I suspect you wouldn’t be too popular with the buyer if you explained to them how they paid 9% and both Brokers.
[i][b]Have you ever called at a FSBO and the owner asks do you have a realtor!
If you say yes its 206k
If you say no its 200k
SO WHERE DID THE 6K GO? WHERE DID IT GO? HUMMMMM!!!
SO AS THE BUYER I WOULD HAVE PAID 6K MORE TO THE SELLER BECAUSE HE DOES NOT LIKE REALTORS??
Now I understand you are correct my fault!!![/b][/i]
Sorry Compadre…you just changed the equation. Your first example was 6%…this latest example is 3%. THAT’s a Horse Of A Different Color.
$Cash$/REO/LarryNut-
Your debate who pays commission is a moot point. Your contention is…since the buyer pays for the house…they pay for commission.
Under that misguided assumption…the buyer pays for everything…Title, Escrow, Pro-Rated Taxes-Utilities, everything on the Sellers side of the HUD Statement! I mean…you’ve got to apply the same logic to every other heading on the HUD Form for it to pass the acid test…which it doesn’t.
Frankly…I expected more from you guys. And while I doubt I’ll convince any of you that you’re wrong…I’d caution readers to call Escrow to verify what I’m telling them is true…seller pays commission.
-Infowell
NOTICE INFOWELL DID NOT SAY CALL YOUR REALTOR!!
On the other hand please note Infowell gives great advice and out of the past 100 things we have talked about between us this is the first thing I have not agreed with him on its more so just the ongoing battle between investors and realtors
Great having you on here infowell Sorry we disagree on this topic!!!
How many times have you seen the purchase price increased in return for seller paying the buyer’s closing costs? It shows up on the seller side of the Hud 1 but isn’t the buyer actually paying for it over the next 30 years? I too applaud you for defending your position but let’s be careful not to get personal. There is nothing wrong with agreeing to disagree but let’s not start questioning credibility.
Thankyou
I appreciate all responses and would like to say that, I am not bashing or degrating any realtors or any other agents selling property. (This was one bad apple).
I am making a mood point to say that it is unfair that when you have a contract that is at the point of acceptance and you know it going to be accepted,you are then a pawn to that listing agent,for selling you off for not more money or higher acceptance but for personal well being and don’t tell me that you realtors do not do this!!!.
This is what I understand happened because my agent never recieved a call from her own office from the listing agent.
ONCE AGAIN THANKYOU.
SAVANNAH
Savannah,
Infowell and I did not agree on this topic which is a first he does give great advice we just see this one thing different on the other hand lets get back to the basics…
There are great Realtors out there keep searching you will find the right one or hopefully like me I found the right one’s! There are so many deals out there if one does not work out and if you did not like the realtor don’t call him/her back at least you are on the right track keep looking and looking for the right team try to find bird dogs in your area! They will bring you deals as well I didin’t get to the point of having as many rentals as I do with just one bad egg I went thru some really bad eggs and I mean eggs. I threw out at least 3 dozen or more. And its really not even them its me I look at things and do things way different then most! I find more deals thru other investors or creative signs that I have then I have ever found thru realtors! Good luck to you and have a great night sorry we got so far off the subject!
Holy Cow!
The responses are coming too fast & too furious. I intended to respond to REO & three other responses have come in since I hit “respond”. If this keeps up I will be unable & unwilling to post here any longer. This site is becoming too popular, and I’ve got to work.
“Great having you on here infowell Sorry we disagree on this topic!!!”
I am humbled Sir!!!
“How many times have you seen the purchase price increased in return for seller paying the buyer’s closing costs?”
Good point…you’re not a slacker! However, keep in mind an appraisal is an opinion. If you give three appraiser’s the same assignment…the likelyhood of all three delivering a different opinion of value is great. THERE IS NO RIGHT OR WRONG PRICE. Morover, if you utilize three Automated Value Modules (AVM’s) the likelyhood of them delivering differing valuations is also great.
So it hasn’t been uncommon to have the sales price increased, and the seller pay closing costs. However, this practice is coming under increasing scrutiny. Further, in hot markets the sales prices are being bid up so it wouldn’t be prudent to ask the seller for closing costs.
“I am making a mood point to say that it is unfair that when you have a contract that is at the point of acceptance and you know it going to be accepted,you are then a pawn to that listing agent,for selling you off for not more money or higher acceptance but for personal well being…”
Again…I’m having a hard time following your posts. Let me make some assumptions and say, ‘fair & unfair is all a matter of perspective.’ The contract can be at any point between submission & “the point of acceptance” but, if it hasn’t yet been accepted…it hasn’t yet been accepted. If there’s a lot of interest in a property…the Listing Agent could advise their client that more offers maybe coming in. If the time of acceptance expires…the offerer always has the option of walking. The Listing Agent’s JOB is to get the best offer possible for their client…The Seller.
Sometimes people become VERY emotionally involved. They get upset when their offer is not the one accepted. Rather than understand the process…they look to place blame (a BIG problem in our society).
I’d recommend detaching oneself from the process until the offer has been accepted. Then understand there are always bumps in the road, and rather than come unraveled…step back & consult your Agent for possible remedies.
I don’t know the particulars of Savannah’s offer, and I’m not Savannah’s Agent. As suggested previously…consider speaking to an Attorney or The Department Of Licensing. This way you’ll have some clarification.
“…and don’t tell me that you realtors do not do this!!!”
Of course we attempt to get the best offer for our clients. Our last four listings all sold under 5 days w/multiple offers. I can say, and disclose anything that is legally permissable, and that my client gives me permission to say that will bring them the greatest possible profit.
THAT’S OUR JOB!
On our last four listings there were 12 offers combined. That means there are eight parties out there that probably think I’m a dirty *@!&. The four seller’s–on the other hand–think I’m a great, and will give me referrals.
This is the nature of the business. This is why I won’t lower my commission (special circumstances aside). This is why professional real estate services are so expensive. We live in the most litigious society on the planet at any given time in history. All it takes is one disgruntled buyer or seller to wind up in court.
For what it’s worth…
-Infowell