Is hiring an agent "required"???

Question

Ok, so I'm currently bidding for a home on hubzu and they sent me an email asking if I will have an agent represent me. Is this required? Would it be a good idea? Would it significantly cut into my profit margin?

Dawn Brenengen · Answer

@Sonia T. The buyer can't contract away the already agreed upon commission the seller and listing agent agreed to.  That is a separate contract in effect before the home ever hits the market.  So, for example - seller agrees to pay his agent 6%.  Listing agent, through MLS, offers 3% to a cooperating buyer's agent.  Buyer makes an offer on the home without an agent.  Listing agent is entitled to keep the whole 6%.  Buyer can ask the seller's agent to reduce, but the agent is in no way obligated to do so and may very well say NO.

Greg H. · Answer

There is no benefit to not using an agent on a Hubzu.com purchase so go get an agent.  The agent and you will be sent the contract via Docusign if you are the winning bidder.  There is no benefit to using the listing agent as they have very little input if any in the auction process

They is no discounting the commission to make the net to seller better as in HUD bids

Chris Mason · Answer

I have no idea if that is true or not in your state or market, but that would be unusual in my area. In my area it's just "I know what I'm doing and don't need an agent, ergo I will bribe the listing agent to make my offer 'stronger' and hope that she is willing to shaft her client with poor advice by finding a way to sell my lowball offer over a higher and better offer that she is not getting bribed on, thus royally SCREWING the seller and greatly benefiting me."

EDIT: Of course no real estate agent will express it as bluntly as I just did!

Chris Mason · Answer

If you've got a bunch of real estate transactions under your belt, go for it. Effectively you're bribing the listing agent with a larger commission check, and betting on them being unethical enough to consider this before considering her clients' best interests.

If you're relatively knew, I'd suggest having a shark on your side before diving into the shark tank.

I'd been involved in dozens of real estate transactions, sometimes knee-deep in the negotiations, as a lender prior to purchasing my first home. I used a realtor. But then again, being behind the scenes, I know better than any buyer which realtors in my area truly earn their commission checks, and which are just cheesy salesmen.

Total realtor commissions are negotiated when a home is listed. You as a buyer are not a part of these up-front negotiations that happened a month before the property even hit the mls. The question is basically "Double the listing agent's commission and have no one in your corner that knows the ropes? y/n."

So it really depends on you, imho. Jackie Chan can take out a 12 year old girl scout without a coach. But that 12 year old girl scout needs an agent if she's taking on Jackie Chan.

Candace Ellison · Answer

I would recommend using an agent. The agent gets paid from the sellers. You will not owe the agent anything. Be ready to pay the buyers premium of 4.5% hubzu charges the buyer. I am not a fan of hubzu

Charles Royster · Answer

Hi Michael,

An agent can understand your requirements regarding your choices with new home and can represent your views in better manners.

I was searching for the same topic earlier last month, hope it might be helpful for you get some information regarding agents.

For more insight about the real estate agents.

RegardsCharles

Walter Jones · Answer

I'm a real estate agent myself and the only time you have to have an agent prepare a contract for you is for listed properties by agents basically,

Mark Ferguson · Answer

Hubzu pays the buyer agents commission and they expect the buyer to have an agent. I would recommend an agent with hubzu. They are a pain to deal with. From my experience I don't think you will get any better deal from hubzu not using an agent.

Is hiring an agent "required"???

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