I know this question could be old, but still: in 2014 i bought 7 properties, and ALL of them without buy side agent. Main point when you do that: the seller's agent will get all the commission if he/she sells the property to you and not to a guy with the agent. Now, here is my EXPERIENCE.
- In three of the cases there were multiple bids, but i got the properties because the agents wanted me to get the properties. They did not allow for the properties to go to the second rounds and make sure the sellers went with me. I knew what to bid and topped the second bidders by just nominal amounts. Conclusion: good deal for me.
- in two properties where there were no multiple bids i got credits from the agents that were less than 3% that they would have given to the buyer's agent, but more than nothing. We are talking about close to 1%. They were not obligated to do that, but I negotiated.
- In two other properties i took my time closing the deal while the agents pacified the sellers. We are talking they keeping properties off the market for months. Again: good for me.
I am not passing judgment on the whole profession, just letting you know that the compensation structure is bad for the seller, so you as a buyer can take an advantage.
My advice: If you are serious about investing and buying real estate you should do it without buying agent. You have to know the market, location and property anyway. Agent will not help you. you have to learn now to negotiate. You have to do your homework. Ditch the agent. As a matter of fact i was so outraged by the conflict of interest on part of the listing agent, that i started service to help people to sell without an agent. FSBO on steroids: i am trying to create a marketplace where people would find independent vendors who would help them sell properties. One day i will be looking toward selling my properties, and i do not want to be screwed by listing agents in a way agents i worked with screwed my sellers.
