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From my experience a buyer doesn't pay if there's already a seller's agent. The standard contract is usually something like 6% is set aside for agents and is sp
by pfranz 6y ago
From my experience a buyer doesn't pay if there's already a seller's agent. The standard contract is usually something like 6% is set aside for agents and is split among the buyer and seller's agent if each exist (you don't want the seller's agent representing your interests). Sure, if you and the buyer were comfortable and experienced enough you could go without (you may want a property lawyer instead to look over things). I've never met the other party when buying/selling. I think agents are very good at helping the deal close. Buyers and sellers can get very hung up on minor details--I had a seller bump the price $5k for no reason after we agreed on a price. Negotiating repairs is over 100s of dollars in a multi-hundred-thousand dollar transaction.
While they don't usually pass along properties for sale (since it's faster to research yourself) I have found them helpful when talking about the local area (history, schools, etc). They often negotiate tours before properties go on the market. They'll get the keys and follow your schedule. They've been very helpful in scheduling and coordinating things like inspections in repairs--often being the one on site and letting me stay at work.
I don't trust they have 100% of my interest in mind (they want to close and get their cut), but they have an answer for inspections, repairs, mortgage company, etc. I'll usually go with their people to close and change insurance or refinance later when time to close isn't an issue.
- aj7 6y agoAll funds, repeat ALL FUNDS, from a real estate transaction come from buyer. Some of these funds are returned to seller, and buyer receives title to a house. Study this. It is more subtle than it sounds, especially in light of the closing statement.
- fshbbdssbbgdd 6y agoIs this like saying “your income tax is paid your employer”? It seems true in some sense (the withheld money goes from the employer’s account to the government’s account) but false in another.
- syops 6y agoThe buyer does not pay for the costs of using real estate agents in upfront money. They pay the cost of using agents by paying a higher price for the property, all other things being equal, if no agents are used.
- aj7 6y agoThe buyer pays the costs of EVERYTHING. This does not mean that the deal isn’t good. The seller does not bring money to the closing. He brings the house title, figuratively.
- fshbbdssbbgdd 6y agoLet’s imagine that two identical homes are for sale, and it’s a buyer’s market. The owner of home A has contracted with a real estate agent to pay a 1% commission if there’s a sale, and the owner of home B has contracted to pay 2% to a different agent. Both homes have a market value of $1 million. The buyer will pay $1 million for either home, and won’t be willing to pay more for home B just because the seller has agreed to pay their agent more. We can see that the incidence of the agent’s fee is on the seller in this case. Put differently, increasing the agent fee decreased the net worth of the seller after the transaction, not the buyer. Given different facts, the incidence could be on the buyer. The fact that the buyer is supplying the cash doesn’t tell us who the cost falls on. The buyer could pay by adding more cash or the seller could pay by gaining less cash. I’m cribbing from the concept of tax incidence here: https://en.m.wikipedia.org/wiki/Tax_incidence https://en.m.wikipedia.org/wiki/Tax_incidence
- aj7 5y agoIndeed, various actions by seller can affect his yield. Nevertheless, all funds in a real estate transaction COME from buyer. Once you get this, you've learned something.
- ramraj07 6y agoYour income tax is indeed paid by your employer? Is there any other way to look at it for employees on payroll? It's just that you do the calculations to tell what rate you're supposed to be on..