Do I need an agent when paying cash?

Question

If I am buying real estate with cash - do I need an agent? What if the seller has an agent?

Wayne Brooks · Answer

Cash or finance makes no difference in needing an agent. If it is listed by an agent there is no savings in not having your own agent....yes, get one you trust.

Kirk R. · Answer

reading your other posts:

....... I'm new to real estate investing and have been getting e-mails from home investment companies stating the house (for example) ARV $250,000Seller Asking Price $215,000Repairs Needed $0There has to be a catch. Why would they do this?.............

I would offer more advice, but since yiu as a Newbie know more than a Realtor I'm disinclined to.  But you as a Newbie know more than a Realtor. smh x2.

Becca Summers · Answer

@Daniel O'Grady If you are paying cash why would you need a rebate? Why not write the offer for that percentage less? However, writing the offer for 3% less now makes you the same net to the seller as a buyer with a buyers agent so you've lost your competitive edge. You could write the offer and then ask for a percentage to cover your closing costs but being cash you wouldn't have much depending on your state. In Utah, the seller pays the title policy so there really aren't many fees unless you want a lenders policy??

You could have your friend who is an attorney write the contract for you.

To answer your question on commission, the seller is paying the agent 5-6% to sell their home. That agent is called the seller's agent. The seller's agent will put the home on the multiple listing service and offer a buyer's agent commission to bring an able, ready and willing buyer to the property. There is no set amount but it's often half of what the listing agent is taking from the seller. In the event of an unrepresented buyer, it's up to the listing agent for what they do as they have the contract with the seller. They can take the full commission as helping an unrepresented buyer is a lot more work than working with another professional. They can reduce their commission for their sellers and give a rebate to the seller. They can't give it to a buyer. However, it could be a credit in closing costs, or a lower purchase price. It's all about the net to the seller.

Kirk R. · Answer

I am very confident a buyer's agent would be of very little value to me (aside from opening the door) - (apologies to all you buyer agents out there

& yet you don't know how commissions work smh

Wayne Brooks · Answer

@Daniel O'Grady As a non licensed person, the commission can Not go to you. The lusting has a contract for 5-6%....if you have no agent who is a part their mls, the entire commission goes to the listing agent. You could use the listing agent for both sides and try to negotiate something....maybe a 1-2% reduction in commission which could be a reduced price by that much of a seller contribution to your closing costs. But be aware, the listing agent has no obligation to reduce the commission.

Peter Walther · Answer

I'll tell you for 3% of the commission.

Justin Abdilla · Answer

You need either an attorney or an agent.  You don't need a loan officer.  If you happen to know RESPA like the back of your hand, and have prepared title insurance documents in the past, and have a real estate broker's license, maybe you won't need one.  Otherwise, just the documents alone are going to open you up to so much liability it's worth hiring someone.

Daniel O'Grady · Answer

smh back

neg

Why do realtors want to pretend that calculating real estate commissions or ANYTHING they do is 1. complex 2. remotely necessary ??????????

I can do fine without some real estate agent's rhetorical advice, market mastery and negotiation "wizardry". An agent provides zero value other than opening the door in my estimation.

The question is how do I write into my cash offer that the selling agent will either reduce his/her commission, or give me a credit at closing. Would it be easier to just have my own buyer's agent and agree on the rebate with them?

Daniel O'Grady · Answer

How would I write the commission going to me into the offer?

A friend of mine is a real estate attorney and I would like the 3% to go towards paying him and covering some closing costs.

I am very confident a buyer's agent would be of very little value to me (aside from opening the door) - (apologies to all you buyer agents out there)

Kyle J. · Answer

@Daniel O'Grady  Like @Wayne Brooks said, whether you’re making a cash offer or a financed offer has no bearing on whether or not you should use an agent.

And the seller’s agent is not your agent. They’re the seller’s agent and looking out for the seller’s interests.

Unless you’re an extremely experienced buyer, get your own agent so you have someone to represent your interests and guide you through the process.

Do I need an agent when paying cash?

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