Easy way to tell agents you are buying without representation?

Question

Hi guys, is there an easy way to tell real estate agents  you are representing yourself and you don't need their help?

I know the process, I have family in the business, and I have the paperwork. It seems like they don't get the hint, and sometimes I am just straight rude, especially at open houses where the listing agent isn't really present and you have an agent their trying to get customers. Anyhow, I'm sticking to my guns about this because I am offering less on houses because the seller doesn't have to pay the BAC.

Keep in mind, my offers don't allow for dual agency either. My contracts explicitly say BAC will not be paid out and we are not being represented. And the correct boxes are checked on the NWMLS forms.

Thanks.

Mike Cumbie · Answer

Hi @Tiffany Campbell,

Personally I prefer not to be a "Dual agent". If I have a house listed and someone else comes in during an Open House I recommend they get an agent and submit a contract. If they want me to write up the contract I have no problem but I am clear I am the sellers agent. I will treat the buyer fairly, however I owe confidentiality, full disclosure etc to the seller. It is in their best interest to get themselves an agent. I do have plenty of agents I can recommend who I have worked with in the past and I know are above reproach, however who they want to represent them is their choice totally.

Now if you feel comfortable buying that house with her you can, not sure i would sign exclusive representation till November with her though. That says anything you buy between now and then she gets a piece of regardless if you find it on craigslist and pay cash, you still owe her that percentage.

good luck!

Account Closed · Answer

I want you to do 100% of the work for 50% of the pay.

Mike Cumbie · Answer

@Tiffany Campbell,

Each agent sets their own fees. I know some with a minimum 3K fee (I know wholesalers who won't touch a contract without at least 5K on it). But if you buy from HUD it may only have 2.5% on a 40K house so it all is up to them (Why some agents don't touch HUD).

I have a 45K house closing first week of next month I ended up with 3% on. I have no complaints it got the right buyer in the right house and there was minimum legwork on my end. So it is all up to the agent and you to decide what you want to work out.

Jacob Bindler · Answer

I do not usually get representation on buy side and deal with the listing broker directly. Usually it means double commision for him/ her and i get the best treatment and most likely the property ( even if there are bidding wars and myltimple offers). So, thr next step aftervi gotvit is to go to the contract and contingencies. This is when I try to play double commission game: I use inspection results to come up with something and ask for credits for the seller. If the seller refuse I suggest the agent gave up a piece of his compensation. The piece has to obviously be reasonable, make some justification and be less then buyer's part. I got it in two instances. The agent will face a choice to risk more. Depends on your negotiating skills.

Matt Motil · Answer

I don't know about the laws in your state, but in Ohio the seller pays the listing broker the full commission regardless of whether or not you are being represented. You're not saving the seller anything if they are currently working with an agent, you're just making things more difficult. If you don't want an agent, that's up to you, but at the end of the day, typically there are no costs to the buyer to be represented even if you want to lowball offers on places so agents probably aren't understanding why you are insisting on going it alone on the buy side of the deal.

Russell Brazil · Answer

Two quick thoughts....being rude to an agent is a great way to have them ignore offers from you in the future on a house they may be listing. The second is the commission agreement is between seller and the brokerage, and the seller is paying out the same percentage regardless if there is a buyers agent or not.

Tiffany Campbell · Answer

@Mike Cumbie Thank you Mike! What I'm hearing is that the dual agent relationship doesn't have to be a deal breaker, but that Broker fee seems quite high on such a cheap property.

Wayne Brooks · Answer

@Jerry Smith

Agree with the others, generally language in a purchase contract is between the buyer and the seller, and does Not override terms in the listing contract, which is between the owner and the broker.  Your insistence on this attitude, and your perceived savings, are likely costing you deals.

Tiffany Campbell · Answer

@Jacob Bindler I like a property and the Broker sent over her DUAL representation contract. She is asking $3,000 and $295 broker fee on a $45,000 house plus have us sign on with only her until November. I haven't signed anything yet. Will it be cheaper if I get my own representation that is actually working in MY best interest and not the seller?

Ned Carey · Answer

I would just be direct. If it is a problem then just say I am already represented.

Regarding the buyers agent commission, that is not up to you. That depends on what the contract between the seller and their agent says. Most listing contracts say the agent gets the full commission. If there is a buyers agent, then the agent will pay 1/2 of the commission to the buyers agent.

Easy way to tell agents you are buying without representation?

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