I'm looking to buy a primary residence without a buyers agent and am looking for negotiation strategies. from what I've read online it seems the appraisal covers a great deal of the variables (neighborhood, market etc) Aside from offering to pay what the appraisal says the property is worth, what else goes into it? I'd assume the seller not having to pay a buyer's agent commission, would give the buyer some flexibility in lowering the price.
Hey Chris. I thought about doing something similar, but ended up working with an older agents who "wasn't afraid to lowball". He was about 75 years old, was an investor himself, and was very easy going about things.
I would find somebody like that if I were you. Interview a bunch of realtors and let them know that you are looking for the best possible deal for you and your family.
Otherwise, I think the best way to do it would be to try off market. Get somebody before they sign with a listing agent.
Lastly, you can reach out to the seller's agent directly (it's listed on zillow) on each property and say you don't have an agent, so you'd like to work directly with them (the subtext here is that they will be doubling their commission). But say you're looking to pay X (X being your price. Ideally much lower than the listing price). If the seller's agent is doubling their commission, then they are more likely to present and advocate for your offer.
At the end of the day, your goal is to get a house at a good price. It really doesn't matter what agents get paid if you get a great deal.
Good luck and please let me know how it turns out!
The greatest negotiation skill is learning how to listen.
What's the point of buying without a buyer's agent? You know that means the listing agent is your agent and they are getting the whole commission, right? They already have a contract with the seller for the entire commission to be made, with half (usually) going to a buyer's agent. It does not get waived if the buyer does not have an agent, it all goes to the listing agent.
"the appraisal covers a great deal of the variables (neighborhood, market etc)"
No, the appraisal is primarily for the lender. If you buy all in cash, for example, there is no automatic appraisal.
In today's market, for properties on the MLS, no seller is going to offer to reduce their price by the commission because they don't need to.
As a buyer, having a buyers agent is a good deal.
@Chris M. The right buyer's agent is going to be one whose value is displayed in helping you achieve your end goals. As someone else said earlier, if at the end of the day you end up getting the house you want at the price you want to pay....why do you care if the realtor representing you gets paid by the seller?
@Chris M. I echo who said you need to listen, also why in the world would you not use a buyers agent on your first deal? Especially when you are asking a question like this if you maybe had bought a few properties then that is another story but just use a buyers agent and use the MLS you will not get a Homerun on your first deal, just go for a base hit
@Jacob Trogan just reviewing everything about your question once again please use a professional that is how you will get it done and not get screwed starting off, I can tell you have never done a deal from these basic questions, if I come off a little rude good you need to pay others in order to have success like has been stated a few times the more you can help others the better off you will be, I have talked to too many people who got under contract on a home where the sellers agent represented the buyer and seller and after I review the contract they got screwed over as a buyer
@Chris M. There are flat fee listing agents as well as rebate buyers agents. The latter expects you to get the seller agent to show you any houses. They write up the offer and communicate between you and the seller/seller agent. I have paid list and gotten 2% back at closing, 4k. Not much if financing over 30 years at todays rates.