patrick.net

Have you tried Redfin? They are in certain markets and they do the buyer's agent side taking much less commission (so I have seen on the web site, but I haven't actually used them). I wouldn't sign a 'contract' with a buyer's agent. Does that even exist? If they offer a benefit to you, e.g. help find you what you want, provide useful information, and do the paperwork, great. Otherwise you owe them nothing but a thank you. Just as you would a salesperson in an electronics store who failed to find you the best product at the best price.

I have absolutely bought without an agent before and yes, the selling agent / broker generally just takes the other half of the commission. I didn't care one bit since the seller pays. If that means it's a short sale at your price, well, ok that could be a wrinkle. I recall in my case they just gave one of their other agents the buyer side. Again, I didn't care. Depending on the broker / agent's attitude I would tell them I am self-represented, and hey, if they have a slightly underwater seller they can make a deal by decreasing the 6% commission since there is no 'other side' to pay.

But, people in CA are IMO kooky about this. The agents will tell you it's somehow unethical or they won't 'take the risk'. Really they are just protecting their little monopoly. Buyers here seem to think you need the buyer agent to 'protect your interests' but I am comfortable protecting my own. CA agents will lead you to believe they are real estate lawyers, know things no one else does, have information you can't get anywhere else, etc. I do my own research and have yet to meet a RE agent who actually helped much.

That said I would certainly use one *if* they actually helped me find what I wanted, gave me useful insight, acted as my proxy in negotiations, etc.

If I buy in CA (still not sure I will), I am going to look at redfin for sure.

pkowen says

I didn’t care one bit since the seller pays

that's debatable, LOL. The seller may pay the intermediaries, but who's paying the seller?

If it's listed with an agent, the agent will get paid. You could see if the selling agent will reduce the commission - but you're stuck paying a commission. And - the buyer does pay the agent, but the seller pays a higher price so the seller really pays for it. IMHO, of course.

It appears that you don't like the house otherwise you would have just offered the extra $15k. And on $500k, $15k is not that much. Perhaps you should find another house that you like better.

"They don’t have to keep the full 6%. For example, in the above situation, to get the deal done, they could rebate 3% to the seller and still keep 3%."

No they can't. Each agent has to give a percentage of their commission to their broker. If they rebated 3%, they would end up making 0.

HousingWatcher says

It appears that you don’t like the house otherwise you would have just offered the extra $15k. And on $500k, $15k is not that much. Perhaps you should find another house that you like better.

I love how everyone says this. If $15k isn't that much, please send a check for that amount to:
my name @ my address. For some reason, I doubt you'll be sending the check.

HousingWatcher says

“They don’t have to keep the full 6%. For example, in the above situation, to get the deal done, they could rebate 3% to the seller and still keep 3%.”
No they can’t. Each agent has to give a percentage of their commission to their broker. If they rebated 3%, they would end up making 0.

Maybe it wasn't clear above, but if there is only one agent involved (just the listing agent), then he will get his typical 3%. The 3% that would normally go to the buyer's agent, would go to the sellers. Nothing changes for the listing agent.

What makes you so sure the agents are getting 6%. Most agents I've hired have taken only 4-5 percent.

HousingWatcher says

What makes you so sure the agents are getting 6%. Most agents I’ve hired have taken only 4-5 percent.

Are you saying 4-5% each or total? It seems pretty standard around here that each gets 3%.

No total. So 2.5% each.

HousingWatcher says

No total. So 2.5% each.

It depends on what the agent was able to negotiate. I've seen it generally ranged from 2.5/3.0%

I've seen one that was 2% but it's probably because the flipper seller made a bad investment. He wouldn't even break even had the agent taken anymore.

I've seen mobile homes sold for flat rate commissions ($3000 or so) regardless of what the sale price is.

15,000 is alot, maybe 80/month for 30 years

Why not have everyone chip in. Home owners could drop it 5K, both agents 3K off and maybe you could muster up 4K.

If you're having issues with 3% of the sale price, I think it's time for everyone to toss a bit into the pot to make it happen.

How about a guy puts a for sale on his lawn and go knock on his door?

We're such a KY jelly culture.

Man, here in Belgium a buyer's agent does not exist but a sellers agent does. They ask around 3% but some you can negotiate the price down.

I am planning to sell a property but am not planning to use an agent, just sell directly to the buyer from owner, like Patrick advised!

Thanks for the great website.

How about asking the owner when their listing agreement ends. How long has the house been on the market? Check that against the prevailing listing agreement duration.

You could then do the deal as for sale by owner. Just wait it out until the sycophants are gone.