How do you handle a seller who wishes to NOT have a real estate agent involved with a property you are looking to purchase? If the buyer wishes to utilize one and the seller wants nothing to do with an agent...what is the next step? As a newby in RE (No deals yet) I do not want to make a move without an agent that could see issues that I, due to my lack of experience, would likely miss. Any insight?
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Do you know why this seller is selling? The seller's motivation might help explain their reluctance. Some people, rightfully or not, have an extremely pessimistic opinion of real estate brokers due to a past negative experience (I admit, in my market a good agent is hard to find). Other people are hiding something that a trained professional would spot from a mile away i.e. deferred maintenance, title issues, etc.
I would ask this seller what prompts their misgivings about dealing with realtors. Are they willing to let you engage your own appraiser, home inspector, and title insurance company as part of your due diligence and it's only realtors that they're skeptical of? If the answer is no and they just want to sell fast buyer beware I personally would not want to move forward but it's not my money.
I would say the next step is to continue a dialogue with the seller and try to understand their perspective and lay your own concerns on the table. Be patient with the seller trust your gut. If something feels off don't feel obligated to move forward. Good luck!
You basically have 3 options
1. Move forward without the realtor.
2. Pay the realtor yourself.
3. Move on to a different property.
I also recently had a similar scenario. There were too many red flags for me with deferred maintenance and roof issues so I backed out.
I'm interested in the responses as well.
I agree with Aaron on your three options.
It seems the seller might be hiding something or just wants to save 6%. The seller likely will say "you can have your agent help with the transaction but you'll have to pay them yourself". If you really want an agent maybe you could pay them an hourly rate for help or flat fee if you close. Explain to our agent that you'll be buying more properties in the future and maybe they will work with you.
Another option is to learn each step yourself and use BP as a sounding board during each step to get answers to questions you have. Good luck on your closing our first deal!
Offer to pay the agent's commission yourself, and if he still balks at that, chances are there are more issues with the property he's trying to hide.
As far as the seller is concerned you have to pay your agent yourself. In reality though you just bake that into the cost of buying the property and adjust your purchase price accordingly. In reality the seller is paying the cost but never realizes they are.
You should be able to either negotiate a favorable commission with your realtor since you already have a property in mind or you can agree to pay them on an hourly basis. Unfortunately, most realtors have a hard time grasping the concept of getting paid by the hour but you never know. We do it in Chicago. Try different Google searches in your area such as "realtor by the hour", "realtor hourly rate". Try real estate agent also.
It seems that this seller may not be the owner of said parcel. After my agent did some research on ownership, the mobile home is owned by two different people and the land is owned by a 3rd party. My agent said this one was "very concerning" and if I wanted to pursue this I should check at the county tax department to see if this is on the up and up. There are too many red flags here. Thank you for the replies!
When I sell FSBO and a agent shows up with a client I increase my sale price by the amount of the realtors fee. The buyer is made aware and they can either pay the fee or include the amount in his financing.
My advice is tell th eseller you will pay the realtors fee and he should be OK.
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