East Lansing, MI · Member since 2016 · 31 posts · 4 votes
Some people mentioned that when you are buying a house you should get a "Buyer Agent". So as I see it:
Seller Agent - negotiation the largest price possible for the house to satisfy his seller needs
Buyer Agent - negotiation the smallest price possible for the house to satisfy his buyer needs Both types of agent get payed through commission, basically by the seller. So my question is - why would Buyer agent try to get lower price, if that means he is getting less money? Am I missing something? Maybe I (Buyer) supposed to pay something to my agent?
Do you have to sign Buyer Broker Agreement?
And what happens if you cant find the right deal, but your Buyer Broker Agreement time frame is coming to an end? Do you have some penalties or fees you supposed to pay for working with agent?
To answer your question.. you should ask questions of agents before you "hire" them to work for you.. It's really no cost to you as the buyer.. Do you want someone in your corner during the process? You really don't know what you don't know when you are starting out.. Can't really hurt to find someone that can help you and add value to the process. Right? When you sign the buyers agent agreement just ask how you get out if you are unsatisfied with their services. Their is a section that outlines how you can terminate the agreement.
There are ethics standards that licensed agents are held. From the perspective of the buyers agent wanting to keep the price high... wouldn't you want to make a % of a deal even if it is a lower sales price and be a valued source to a client? Real Estate is a people business and if you are not helping and adding value to people that will be directly reflected in your success. To be truly successful you should have a larger # of people that you can lean on that can provide advice and guidance.
It is only the seller that pays the commission. As a buyers agent, I like it if my buyer is happy, because then they will refer other people.
If they are an investor, they will buy multiple properties in a year, and I might get the listing on the back end. It should be a win-win for all parties concerned.
There is no recourse if the buyers agent fails to find you a property. All a buyer broker agreement does is (theoretically) obligate the agent to negotiate the best deal for you, the client. This is like asking a casino-paid gambling consultant to help you beat the house - it's a conflict of interest as few buyers agents (who are also paid on commission) are truly motivated to negotiate themselves to a smaller sales commission. Its also unfortunately the case that most buyers agents have zero negotiating skill and even less developed sales skills.
Most entry level agents start out as buyers brokers because it's a job no one wants. You'll likely do better negotiating your own deal - in my opinion.
That's not really an accurate assessment, and those are not the only two options.
I can explain in more detail, or provide stereo instructions - either will bore you to tears.
Short version - keep the seller happy (usually higher price), keep the buyer happy (usually "this house").
Seller's will eventually buy another house, buyers will eventually sell. Rinse and repeat.
The simple fact of the matter is, I want to do a great job for you, so next time around, you'll call me first.
Yes, if you want that agent to do any work for you, you'll have to sign for it. They want to make sure they get paid, which seems fair enough, right?
Either a "Listing Agreement" or a "Buyer Brokerage Agreement" is a fancy legal title for what amounts to an employment contract - they work, you pay.
If you like your agent, but the right deal hasn't appeared, you can always renew your agreement. If you think your agent stinks, you can let them go, and hire a different agent.
If you're serious about investing, begin to think of Real Estate Agents as part-time team members. You may not always need them, but when you do, you want the right ones working with you & for you.
Take good care of them, and they'll bring you deals you didn't know existed. If you get in a pinch, they usually have someone they can call that wants it.
That does come at a price.
I know of one investor that offers an extra 1% commission to work with him. What do you think that does for loyalty? If, in the future, the agent finds a deal that meets his criteria, guess who is at the top of the call list?
It shouldn't need saying, but never abuse your agent or relationship with that agent. Even if they're terrible, part ways gracefully.
in my experience, investor friendly homeowner agents don't know jack squat about investors, i don't care what they say. If that agent doesn't have investments themselves that's a red flag. How are they going to know and understand how you want to use your money, run numbers, understand desired return?
Investor agents will understand on the buyer side that you want the lowest price, and shouldnt have a problem negotiating as low as possible since they know this going in. Investors can be alot of work when they are new so ya better buy something when the deal presents otherwise you will quickly move down the list of a serious buyer. The agent doesn't get paid until you close on something!
To answer your question.. you should ask questions of agents before you "hire" them to work for you.. It's really no cost to you as the buyer.. Do you want someone in your corner during the process? You really don't know what you don't know when you are starting out.. Can't really hurt to find someone that can help you and add value to the process. Right? When you sign the buyers agent agreement just ask how you get out if you are unsatisfied with their services. Their is a section that outlines how you can terminate the agreement.
There are ethics standards that licensed agents are held. From the perspective of the buyers agent wanting to keep the price high... wouldn't you want to make a % of a deal even if it is a lower sales price and be a valued source to a client? Real Estate is a people business and if you are not helping and adding value to people that will be directly reflected in your success. To be truly successful you should have a larger # of people that you can lean on that can provide advice and guidance.
I will agree that it's tough to find the right fit.
Most agents I know are primarily residential, bread-and-butter sales. Nothing wrong with that, but it's really nothing more than a job, and most like it that way.
Let's face it - investing is a bit trendy now. And, it's a very nice niche to market to. Not many people are looking to buy and sell multiple properties in a year, but investors do. That's a sweet deal to an agent.
Even some CCIM's fall prey to this. It's a job. Not an opportunity to learn and become involved.
I like investors because I think as an investor.
I'm not going to take my commission checks and head out to the club - that's my seed money.
And better yet, I get a lot of contact with mentors, and exposure to deals. I drive for dollars too, but not just for listings. There is wholesale deal potential, I can meet rehabbers, and keep an ear to the ground for great contractors, and sure, I can put a buyer on a property before it hits the market.
Because I understand it.
Find someone like that. You won't be disappointed.
Hello and welcome to BP! You need to call a local realtor and use their local referral. Just get someone that has your experience and knows where you are coming from. I woul just be honest with them and build that relationship. You might even try the runner of the Chamber of Commerce to get your referral. Be patient and consistent. I am 59 years old and I found BP about 6 months ago and I am still trying to decide what to do. My father has been in real estate for about 40 years and I have learned a little bit from him. Since I am slowly recovering from the brain annurism and stroke I am stuck in bed I have been on BP a lot.i. If you think that I can be of any help to you please contact me on BP at any time. Good luck!