Do you pay buyer's agent fee now
Hi all,
I am a completely newbie here. I will buy a rental property soon. I wonder how many of you buyers now pay 2-2.5% buyer's agent fee VS. buy without an agent/ or negotiating a lower fee with an agent.
About 86% of sales involve a buyer agent. 14% do not.
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If you are newbie, why are you thinking about trying to buy yourself? You should just take your money and light it on fire. That doesn't mean just take any agent, but if you search and find one of the good ones, they will more than earn their commission. The thought that a new investor would even think of buying direct from a wholesaler or from the seller (or using the listing agent) is ridiculous. You want expertise, advice, and protection. If you are new and already thinking about negotiating a lower fee, you will end up with discounted service.
I understand your idea here, however you get what you pay for. If you find a reputable, experienced agent/broker the commission is well earned and you will save a ton of money in the long run. Your paying for expertise, guidance and with the right person you will potentially save thousands in other ways.
Do your own research into the market, be prepared, but use an experienced broker that has worked with other investors to located similar properties.
Best of luck.
Exactly. With the NAR settlement, trying to understand what's the norm in the near future is a bit confusing. Thanks for the advice!
Good question. The ruling does not officially come into effect until Mid/late July. However, that does not mean that buyers brokers will not get a commission, it will change how things are done and will still be able to be negotiated outside of the listing platform. That being said, as a new investor you should expect your buyer to request a buyers agent representation agreement ( which many should and currently do ) outlining his compensation, which can be structured different ways. Brokers will began getting creative.
Again, going back to my original post, compensate the agent you decide to work with what he/she is worth, and focus on the numbers of the deal not what your broker gets, that should not even matter to you. Focus on building solid relationships with people that will want to work with you in the long run.
Again, I could be wrong, but that's how I see things. ;)
For sure, I am aiming to maintain a long-term relationship with people on my team. Thanks for mentioning the buyer agent presentation agreement, that's helpful!