What is the best way to make offers without agent assistance?

Question

I've heard that people use offer templates, or a lawyer. But I also know that there are new, online brokerages, like OpenListings through which you can make offers, while getting a significant portion of the buyer's agent commission back. Is it possible to get the buyer's agent commission without being an agent? Does there exist a configurable, virtual offer template somewhere? If not, is such a thing possible from a legal perspective?

As someone who has always used an agent, I'm also curious what people's experiences are going agent-less on the buy side.

Thanks!

As someone who has always used an agent, I'm also curious what people's experiences are going agent-less on the buy side.

Thanks!

Bob Okenwa · Answer

@Brennan Mowry

You cannot receive a commission if you are not a licensed agent. I cannot see a good reason as to why you would want to avoid using a buyer's agent if you are a buyer. They have your best interest in mind (not all, but most do) and you do not pay for their services.

Maria McCreless · Answer

@Brennan Mowry, if your buying a for sale by owner you may get a lower price because the seller isn't paying a commission fee; however if your buying an on market deal there is a listing agreement in place.  The selling agent is unlikely to give up any of the commission simply because you chose to act as your own agent.  The selling agent will just pocket the other 3% or whatever portion is set as side for the buyer's agent.  Buyer's agents are paid by the selling agent and the selling agent is paid by the seller per the listing agreement.  You can always ask the selling agent if they are willing to reduce the commission rate if they represent both sides, but I cannot see any agent giving up a whole 3%.

Caleb Heimsoth · Answer

@Brennan Mowry. I’ve done this twice now in two different states (TN and NC) once as the buyer and once as the seller.

Each time I googled “purchase contract for *state name”.  Then I took that contract and filled in the information.  Then both me and the seller/buyer signed it.  Then I sent that to my title company.  They did the rest.  Not that difficult

Seth Parmelee · Answer

@Brennan Mowry the commission was already negotiated by the seller and the selling firm. The selling firm then splits the commission however they deem. Just because there is no buying firm does not mean the commission is lowered.

Arlan Potter · Answer

I have bought many properties without agents. We agree on a price and have a one page contract. After title work, I trade a check for a deed.  Pretty simple.

Bob Okenwa · Answer

@Brennan Mowry

Even if you don't use an agent, most sellers will not just discount the listing price by 3% to make up that difference for you. It would generally be seen as a win for the seller as they would only pay their agent and save that extra 3%. As the buyer, you would not have to pay that 3% unless explicitly the seller explicitly states they will not pay a buyer's agent, which can be the case in a FSBO.

Every state has their own version of the residential purchase contract, but as was alluded to by @Nathan G., you can use a self-drafted document as a contract. Or use one of the BP contracts for your state. Or have a lawyer draft one. Or do a Google search for a template. They're everywhere. There's nothing illegal with writing your own contract. I'd still have an attorney review it regardless to ensure your interests are protected and that the seller isn't being preyed upon with the wording therein.

As an individual who has the authority to execute a legally binding document such as a purchase contract, I would never use a document that wasn't approved by the state or drafted by a lawyer in my state. No need to take shortcuts with something so important. But to each their own.

Brennan Mowry · Answer

Thanks for confirming that you must be an agent to get the commission @Bob Okenwa.

You would not use one, so that you get the 3% commission back, either in terms of a discount on the property, or via cash. Using a buyer's agent makes sense, if you're using the agent extensively for updates, showings, contacts and miscellaneous information. But if the only thing the agent is doing for you is drafting and submitting the offers, it is rather expensive. 3% of a 500k property = 15k.

I'll ask again, does there exist a configurable, virtual offer template somewhere? If not, is such a thing possible from a legal perspective?

Nathan Gesner · Answer

Yes, you can buy property with a simple one-line contract written on a napkin. It works great...until it doesn't.

A buyer's agent is an expert that can protect you, help you negotiate your offers, and so much more. Their fee is paid by the seller, not by you. Why wouldn't you use one?

What is the best way to make offers without agent assistance?

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