Discounted commission from buyers agent? (Dallas, Garland: real estate, foreclosed, mortgage)

[bjamm]

Hello, this is my first time posting here and just have a quick question about how this would work.

I am interested in buying my first home in Dallas. I have my pre-approval letter from my credit union and am ready to buy and start putting in offers. I have kind of been working with a buyers agent however have not signed any contract with them. This agent has not done any work for me. Every home I have looked at is based on me finding it and researching its value/comps. I said I want to live in one of three cities and this agent keeps showing me others, even 30-40 miles away where I want to live, with "bonuses" (which I am sure benefits them not me). The only work they have done is write up one offer, and show me 3 homes. I asked since I am doing all the work if they would be willing to accept 1% and give me the other 2% for closing, the response i got was "Times are hard and i cant accept anything under 3%".

I found this rude and appauling. If I am buying a home for 250k and they will get near 7k off of the deal instead of 2500 I offered which I still feel is undeserved.

Is there a way to get a lawyer or make an offer myself? Or is there any agent in the DFW area that can basically just write up an offer for me and give me the discount towards closing since I am willing to do all the work.

It must just be me but i feel 3% is way too high since I am doing all the work. Is it just me or am I being unreasonable?

Thanks for your opinions.

[todaro3577]

i would look for another agent that will work for you. if you are not a licensed realtor yourself, you can not collect not even a penny of the commission. if that was the case, why would a person need to go to school, pass the state exams to work in the real estate field?
you as the buyer dont pay the realtor to begin with. the seller is the one who pays the realtor or realtors involved in the transaction and the amount of commission paid is negotiated between the listing agent and the seller himself.
if your looking for some kind of credit or money at closing, you should look into sellers concession if that is available. you can add a % your closing cost to the offer price and take that back at closing. im not sure what the maximum amount you are allowded to take back at closing. i would check with your mortgage rep for that info. in the end your really paying for that money but over a 30year or 20 year time period which will not hurt your monthly payments as opposed to having to take that out of your pocket at closing.

i would honestly look for a realtor that is experienced and ready willing and able to work with you.

[cityconvo]

I strongly second what todaro3577 says about getting a different agent. I just went through the process and closed this past week on home and I had to switch agents in the middle because of the same thing.

Buying a home is way too important to settle for someone that is not listening to your needs and doing what it takes to see that those needs are met. There are many really good agents out there but you have to select them as though you are interviewing them for a job at your company. If you begin to get the feeling that you know more about the process or the neighborhood you are looking at than your agent, then it is time to get someone that is more qualified to assist you in your search.

I would be more than happy to recommend the agent I switched to if one of your areas is a close in Dallas neighborhood. Just send me a direct message.

[bjamm]

Yes I am looking in the Garland/Sachse/Wylie/Murphy area, I think anything by firewheel would work for me and only 30min from my work and 20min from school and is what i think is the nicest area for my price range.

[BEVH]

Why don't you do the Costco real estate program. The agent is a dual agent but you get almost 1% back from Costco and if you use their mortgage you get savings there too. not to many know about this program. it works for buyers and sellers. I am using it and very satisfied. There are about 4 firms in the DFW area that manage this program

[Markfd]

I'm not really in the same boat as I'm thus far happy with the realtor I am using (as the buyer) to search for me but forgot about the Costco program and really like Costco, buy everything there -- so you wouldn't happen to know the names of those 4 agents (agencies?) - you could pm them to me if needed? Thanks - Mark

[nsumner]

Bjamm, It is very very important for you to work with a Realtor that you trust, that you feel is working on your behalf. How are you coming up with the offer amount? Is the agent doing a market analysis for you? doing a history on the house, we can find out sometimes how much homeowners owe on their house. This can only be done if an agent is a buyer's agent.

Also, BEVH, there is not such thing in Texas as dual agency. An agent can only represent a buyer or a seller. If you don't have an agreement in writing that they are representing you, they are working on behalf of the seller. There is an intermediary relationship that can be created but the agent in that case will only be acting as a messenger between the parties and cannot and must not give advice to either party. At the end, they keep the whole commission. I don't think that's fair to either buyer or seller except to the agent.

Also, the rebate you get from Costco is actually paid to them by the Realtor that they refer you to. I am glad that you are happy with your Realtor.

Naima

[Markfd]

Further clarification, I would love to see if one of them is the agent I am so far using and we just haven't put it together yet?? Mark

[Markfd]

Naima - trying to IM you but not working on my end, can you send me an email if you're still there? Mark

[challenge01]

I think it is best for you to work with a realtor, however I have worked directly with the sellers agent, negotiated a price on a house, he submitted my offer on the property for me and I received the other halh of his 3%. Of course I had to have that in writing and it was also in my contract. It was a foreclosed property and the bank also gave me $4000 toward closing cost and repairs. I did run into a slight problem, the bank I was approved by only allowed me to received so much from the seller toward the purchase of the house, but I was able to convince them to let me keep all the funds etc. I don't know how common this practice is, but the banks realtor told me, things like that rarely happens. I did have an agreement to give him $500 out of my 3%, that he gave me. He told me that basically he was giving me $8000 and most people wouldn't do that. I know he is a broker so he doesn't have to split his money with anyone. I knew the area and the house I was trying to get, I also knew what it had sold for before. If I had not known those things, I would have been taking a chance. I read the sites here daily, I think Nsumner is very knowledgeable and could give you some great advice in this field. Good luck. I would get a good realtor, especially if you really don't know this area. you will need someone to look out for you.