Real Estate Question

[Accountable]

They have a deal now I haven't heard of. Our builder, being the seller, is willing to pay 3% to a buyer's agent even though we found the place ourselves. The sales agent (employee of the builder) tells me that she gets her commission, regardless. The 3% is usually used to strike a deal with a real estate agent when selling our current house. Usually the seller pays the selling agent 6% of the selling price, which is then split with the buyer's agent, if any.

Confused yet? Don't feel bad, I've been trying to get my head wrapped around it for 2 weeks.

Anywho, the deal runs that we cut the agent in for the 3% of the new house without having done any work at all in exchange for half-commission (3%) on the house we're selling. Since the new house is more expensive, the agent realizes a slightly larger profit, and we save 3%.

I don't see how this works unless the purchase of the new house is contingent upon the sale of the old one. That's not the case with us. We can pay down without selling the house, so we don't have to get tied up like that.

We'd still like to take advantage of that 3%, since it's free money, but it can only go to a buyer's agent. Anybody have advice or experience with this kind of stuff?

[OpenMind]

Originally Posted by Accountable

They have a deal now I haven't heard of. Our builder, being the seller, is willing to pay 3% to a buyer's agent even though we found the place ourselves. The sales agent (employee of the builder) tells me that she gets her commission, regardless. The 3% is usually used to strike a deal with a real estate agent when selling our current house. Usually the seller pays the selling agent 6% of the selling price, which is then split with the buyer's agent, if any.

Confused yet? Don't feel bad, I've been trying to get my head wrapped around it for 2 weeks.

Anywho, the deal runs that we cut the agent in for the 3% of the new house without having done any work at all in exchange for half-commission (3%) on the house we're selling. Since the new house is more expensive, the agent realizes a slightly larger profit, and we save 3%.

I don't see how this works unless the purchase of the new house is contingent upon the sale of the old one. That's not the case with us. We can pay down without selling the house, so we don't have to get tied up like that.

We'd still like to take advantage of that 3%, since it's free money, but it can only go to a buyer's agent. Anybody have advice or experience with this kind of stuff?

Haggle?
Look around some more. It's recommended that you look at a lot of properties before committing to a haggle.

[Accountable]

Originally Posted by OpenMind

Haggle?
Look around some more. It's recommended that you look at a lot of properties before committing to a haggle.

The property's good. The price is good. This is just a way to save 4000-4500 dollars on the sale of our current house. My concern is that an agent will take the buyer's commission then not do more than the bare minimum on the sale. I mean, why would they? If they sold it to a represented buyer, they'd get zero out of the deal and already have the buyer's commission in their pocket.

[OpenMind]

Originally Posted by Accountable

The property's good. The price is good. This is just a way to save 4000-4500 dollars on the sale of our current house. My concern is that an agent will take the buyer's commission then not do more than the bare minimum on the sale. I mean, why would they? If they sold it to a represented buyer, they'd get zero out of the deal and already have the buyer's commission in their pocket.

It doesn't seem you have any options left then (assuming you've haggled on the price as far as you can). She gets her 3% regardless as a part of her agent's deal with the builder. I can see the builder's reason for using an agent as such.
It depends on the circumstances as to whether you can haggle with the woman for a part of her commission.
I wish you the best of luck.

[Accountable]

Originally Posted by OpenMind

It doesn't seem you have any options left then (assuming you've haggled on the price as far as you can). She gets her 3% regardless as a part of her agent's deal with the builder. I can see the builder's reason for using an agent as such.
It depends on the circumstances as to whether you can haggle with the woman for a part of her commission.
I wish you the best of luck.

Sorry, I muddled something there. The builder's agent was simply giving me advice. Her commission doesn't affect me one way or the other. When I buy, I pay the same whether I'm represented or not.
However, the builder would pay my representative a 3% commission. I can possibly use that $4500+ free money to my advantage. If I bring the agent who is to market & sell my current house, in on the purchase of our new house, he/she (I haven't even hired one yet ) gets the commission paid by the builder. If not, the builder keeps it.

I hope that makes it a little clearer; my heads starting to hurt.

[OpenMind]

Originally Posted by Accountable

Sorry, I muddled something there. The builder's agent was simply giving me advice. Her commission doesn't affect me one way or the other. When I buy, I pay the same whether I'm represented or not.
However, the builder would pay my representative a 3% commission. I can possibly use that $4500+ free money to my advantage. If I bring the agent who is to market & sell my current house, in on the purchase of our new house, he/she (I haven't even hired one yet ) gets the commission paid by the builder. If not, the builder keeps it.

I hope that makes it a little clearer; my heads starting to hurt.

Can I be your rep? I can talk to the builder's rep on the phone? Please?

[Accountable]

Originally Posted by OpenMind

Can I be your rep? I can talk to the builder's rep on the phone? Please?

Sure! But first, let's see your marketing talent to sell the old house.

[OpenMind]

Originally Posted by Accountable

Sure! But first, let's see your marketing talent to sell the old house.

It would cost me more to fly out to you seeing as my travel insurance would be high.

[Accountable]

Bump.

Originally Posted by Accountable

They have a deal now I haven't heard of. Our builder, being the seller, is willing to pay 3% to a buyer's agent even though we found the place ourselves. The sales agent (employee of the builder) tells me that she gets her commission, regardless. The 3% is usually used to strike a deal with a real estate agent when selling our current house. Usually the seller pays the selling agent 6% of the selling price, which is then split with the buyer's agent, if any.

Confused yet? Don't feel bad, I've been trying to get my head wrapped around it for 2 weeks.

Anywho, the deal runs that we cut the agent in for the 3% of the new house without having done any work at all in exchange for half-commission (3%) on the house we're selling. Since the new house is more expensive, the agent realizes a slightly larger profit, and we save 3%.

I don't see how this works unless the purchase of the new house is contingent upon the sale of the old one. That's not the case with us. We can pay down without selling the house, so we don't have to get tied up like that.

We'd still like to take advantage of that 3%, since it's free money, but it can only go to a buyer's agent. Anybody have advice or experience with this kind of stuff?

[Nomad]

Originally Posted by Accountable

They have a deal now I haven't heard of. Our builder, being the seller, is willing to pay 3% to a buyer's agent even though we found the place ourselves. The sales agent (employee of the builder) tells me that she gets her commission, regardless. The 3% is usually used to strike a deal with a real estate agent when selling our current house. Usually the seller pays the selling agent 6% of the selling price, which is then split with the buyer's agent, if any.

Confused yet? Don't feel bad, I've been trying to get my head wrapped around it for 2 weeks.

Anywho, the deal runs that we cut the agent in for the 3% of the new house without having done any work at all in exchange for half-commission (3%) on the house we're selling. Since the new house is more expensive, the agent realizes a slightly larger profit, and we save 3%.

I don't see how this works unless the purchase of the new house is contingent upon the sale of the old one. That's not the case with us. We can pay down without selling the house, so we don't have to get tied up like that.

We'd still like to take advantage of that 3%, since it's free money, but it can only go to a buyer's agent. Anybody have advice or experience with this kind of stuff?

I dont know acc.
A guy came in to Home Depot yesterday and wanted enough sand to fill in 75 sq. yards 1" deep. The bags come in 1/2 cubic yards.
I deferred him to the kid that collects carts in the parking lot and then I went to lunch.
Maybe thats what you should do.