The OP has found a house. We’re very thrilled for her. Yay Biggirl!
[QUOTE=GingerOfTheNorth]
The OP has found a house. We’re very thrilled for her. Yay Biggirl!
[/QUOTE]
Dopefest at Biggirl’s new place this summer!
[QUOTE=What Exit?]
Yes, but that 2.5% does not matter to you the buyer, just the seller.
[/QUOTE]
Well, that depends. Money is fungible. Every seller has in mind a net profit he wants to make. If that profit is “profit after a 2.5% commission” versus “profit after a 6% commission,” then 3.5% of $400,000 is in play, and can (if fairness prevails) be split between the seller and buyer by a modest downward adjustment in the asking price. Of course don’t expect the seller to jump up and volunteer this . . . .
As far as looking at a house with agent 1 and then trying to make an offer through agent 2, some states may have law giving agent 1 a statutory or common law right to part of the commission. So if you must go through an agent, the better process is: 1) find an agent you think you can tolerate/trust; 2) independently research properties on the market; 3) ask the agent to show you one or two specific properties from your list, and if you don’t like the way they deal with you, find another agent. If you just go to a random agent, they will have an incentive to take a shotgun approach and show you fifteen properties so they can stake a claim to a commission on any of those, even if you determine they are a stupid unethical sleaze.
Which, as a final piece of advice, you should assume most of them are. Real estate agents (and mortgage brokers) are the classic example of middlemen with no appreciable added value, in most cases – which is a nice way of saying, parasites. How much skill does it take to print something out from the MLS (by the way, this is why they have so closely controlled the MLS for years – it helps create an artificial information deficit, which in turn aids them in their monopoly)? As the property market soared in recent years, more and more greedy dumbasses flooded into the “Realtor” business, so competition has become fierce and ethics have waned even further. Expect the worst, don’t sign anything if you can avoid it, do whatever homework you can on the net and through the classifieds – and you’ll still be bamboozled, get the hard sell, be lied to – but at least you’ll increase your odds of not being made a total pigeon.
Huerta you are correct. That is the way to go.
Once I was shown the light of the Multiple Listing Service, I found a house sooooo much more easily. Depending on an agent to find something suitable was a huge waste of time. Do the research yourself and then use the agent to get you inside for a showing. That was what finally worked for me.
Yay for me! I got a house!
[QUOTE=Shecky]
Lemme just say a little something about foxtons: DON’T.
First, they kept telling us our bid for a house was being constantly rejected. In truth, I had contacted the seller to ask what was going on, because I knew his neighbor and also knew that we were coming in at almost $15,000 better than any other offer. This proce was still $25,000 below asking price. The seller actually told me that nobody had contacted him at all, and he’s more than willing to take our offer. When I asked the Foxtons rep if my offer was approved, he told me the seller had countered to $5,000 under asking. When I said to forget it, he suddenly was able to make the seller “see the light and go for the offer.”
They’re also mostly in the game to get you to finance through their mortgage brokers. Again, I must repeat DON’T DO IT! They tried to sting us for a few points as well as an ARM, all of which they stopped going through me, and instead went through my immigrant wife who had only a small working grasp of the language at the time. Once I finally got involved, the rate had dropped and the points disappeared. Thankfully we were able to get out of that scheme.
[/QUOTE]
At least here in Florida (and I would imagine most places), this is highly illegal and will cost the Foxton’s guy (and probably his boss as well) his license. The Agent is required by law to present your offer to the seller. If you can prove this, you should file a compliant with the licensing body in your state.
[QUOTE=Ravenman]
I bought a house a few years back, and when I was going around looking for an agent, some of them wanted me to sign a contract and pay a nominal fee, like $10. I rejected these agents, but some people sign with them. So far as I know, it isn’t necesarily a scam or anything. It is just that the agent wants to be assured that he’s actually working for a client, not just doing a lot of legwork for someone who won’t use him to actually buy a property. Both buyer and seller agents get something like 3% commission on the sale of the house.
I’m not an expert on this, as I’ve said, but this is what I seem to recall.
[/QUOTE]
Okay that makes sense. So the agent gets 6% in total? Well, good business to be in then.
Buyers don’t pay any fee in the UK (just a massive purchase tax LOL)
It’s got nothing to do with the location.
Moving to Philly. Late 2002, I go Over There for a one week visit; I’ll be moving over in January. The Company kindly informs me that they have a realtor for me to use. I have to use the realtor. I am not allowed (sigh) to use a different agent or realtor or none. Fine, I say, whatever. I check out local ads on paper, check out local ads on the net (the US totally spoiled me for 'net searches on housing, the same Over Here tend to be horrid) and call the realtor.
Me: “I’d like a rental, 1-2B, for less than X, preferably within walking distance of the office or having to take only one line of bus/subway.”
R: “oh, no, no, with your salary you should be spending about XXX” (XXX being 30% of my pre-tax)
Me: “not quite and anyway I’d still like to pay less than X.”
R: “but your social status requires you to pay at least XXX!”
Me: “I ain’t got a social status and my wallet says I’m paying less than X.”
R: “oh well, I’ll send you some listings.”
Me: “less than X.”
R: “of course!”
The listings she sent me would have required me to take at least 2 different bus lines. They started 500 over XXX. They were as large as the place I did find within walking distance of the office for $150 less than X. I got to visit one of them during my stay (one of my coworkers had lambed happily after the realtor) and it had the same shitty white shag carpeting, similar kitchen appliances and a worse floorplan.
Being on commision, they’re friends of the wolf.
[QUOTE=SanVito]
Okay that makes sense. So the agent gets 6% in total? Well, good business to be in then.
[/QUOTE]
Buyers don’t pay a fee in the U.S. either. The seller generally pays a total fee of 6% of sales price. That is split (usually equally) between the listing agent (seller’s agent) and the “showing” agent (the person who delivered the buyer), unless of course they are one and the same (by researching the market and approaching the seller’s agent directly, it can in some cases be possible to negotiate down the commission, and in turn have the seller rebate it to the buyer, as getting 5% is still better than the 3% the selling agent would get if the buyer approached him through a buyer’s agent).