DIY Brokerage -- No Real Estate Agent

[Kyler J Sloan]

My next purchase will probably be made with a Homestyle Renovation Loan. 

I agreed to pay the seller the appraised value seeing as prices have dropped a lot in my area. 

However, the way this loan works -- the renovation costs are rolled into the mortgage; unless the final home value post-renovation, I have to come up with the difference. 

To prevent that from happening, I wanted to negotiate the price down 6% by excluding the commission costs.  

Either I get my license and forgo my commission and request that the seller goes unrepresented, or I find one of these "DIY Brokerage Companies" to save on the commission. 

** Note: I realize that, in the former case, a broker will still take a cut. However, there are options which take a small fee, rather than a large cut of the buyers commission.

Does anyone know of good options? 

Thanks in advance

[Martin Smith]

Quote from @Kyler J Sloan:

@Martin Smith As a multi-generational realtor, you are vested in this. I was addressing the role of an agent in general, not as it pertains to my state. 

In your second paragraph, I think you dramatically over-estimate the role of agents in the vast majority of transactions. They are hardly "experts" in any sense. In my opinion, the industry ought to change to bring buyers and sellers more autotomy to educate themselves and go direct with one another, should they so choose. With technology advancing to the point it has, many of the tasks performed by agents can be automated, and market data is readily available to determine fair market value. If appraisals are taken before an offer is made, that provides the basis for negotiation -- the buyers and sellers can then negotiate down or up according to their personal considerations. Ultimately, brokerage companies should be allowed to die. Instead, they are looking for ways to convince others that they are still relevant or necessary. 

As to what value I bring, It is pretty simple -- I am paying him exactly what his house is worth, and am sparing him the need to get an agent, list his place, sort through the various offers, deal with drama and price haggling, etc. 

That in and of itself is worth a lot to some people. 

The more relevant question is -- what value could you bring to us?

Any answer you offer will be patronizing at its core. 

You seem to have misread my profile - I'm a fourth generation real estate investor. But I'm the only one in the family to ever get licensed as a Realtor. 

And you're right - there's a lot of agents out there who aren't very good at their job, or who don't bring much value other than having access to the lockbox. But there's a lot of people working in any field who aren't that good at what they do. That's why it's important to find and work with one who does provide a lot of value. 

I wish you the best of luck in your journey. We're all here on BP to be helpful, not to pick fights. I hope this seller agrees with your perspective, and that your deal goes off smoothly.