Thoughts on representing self as Buyers Agent

[Jesse Wexler]

I have been looking for a primary residence in Brooklyn NY for the past 7 months or so.  5 offers with my last broker, nothing to show for it except a lease ending and living out of my girlfriends parents place for the time being.  I am going to see a property this weekend, and I posed the idea to the sellers agent or her representing both sides, as that would give more room to negotiate as the buyers agent half of the commission disappears.   She doesnt like the idea of doing that as it can inherently create a conflict of interest, and I respect that.

She posed to me that I could just represent myself.  My thoughts are that the role of the buyers agent up here is to negotiate and that's it.  My real estate attorney handles everything else, whether with a broker or not.  No previous agent has brought me an off market deal, so everything is on street easy, and I found the unit in question myself.   Am an in idiot for taking this approach?  Am I missing anything that I should be aware of?  I come from a sales background and now I own and operate a home care business, I have the utmost confidence to negotiate on my own behalf.  Thanks BP friends! 

[Caleb Brown]

Are you licensed? If you are not then you can't be your own agent. The listing agent would be representing the seller and you'd be unrepresented. The listing agent would love if you didn't have an agent because they would get more $$ in their pocket. I would stick with your broker. Send them this listing, there might be a reason it didn't show up in your search.  See why your offers aren't getting accepted. Try to figure out how out HOW to make them winning offers. If the market is hot then make a stronger offer or expand your search. My market it is cooling so a few months ago is different than today. Also 5 offers in the last 7 months is not a lot, if you made 20+ that's different. 

[Scott Allen]

@Jesse Wexler Sounds like you're frustrated and have been looking for awhile. The market you're looking in might also be very competitive. If you do go through a listing agent, see if they'll be fine with practicing dual agency when submitting an offer. If you're going to represent yourself, get comfortable with the process before hand for after you get in contract. If you're going to use the same broker or a new broker, make more offers and be more aggressive. 

[Jesse Wexler]

Quote from @Scott Allen:

@Jesse Wexler Sounds like you're frustrated and have been looking for awhile. The market you're looking in might also be very competitive. If you do go through a listing agent, see if they'll be fine with practicing dual agency when submitting an offer. If you're going to represent yourself, get comfortable with the process before hand for after you get in contract. If you're going to use the same broker or a new broker, make more offers and be more aggressive. 

 Hi Scott-  Market was hyper competitive, but inventory locked up about 2 months ago and very little has gone on since the last major rate increase. 

The listing agent prefers not to practice dual agency, and suggested that I represent my self in lieu of that.

The unit I am interested in has been listed for 100 days about (insanely long in this market), and has had 2 price decreases of about $100K each, the last decrease 26 days ago (they are due for another decrease).  I have been offering on everything that I actually want to buy and live in. Not sure how I can be more aggressive than I already have been. I am comfortable enough with the process to do it.  

[Jesse Wexler]

Quote from @Caleb Brown:

Are you licensed? If you are not then you can't be your own agent. The listing agent would be representing the seller and you'd be unrepresented. The listing agent would love if you didn't have an agent because they would get more $$ in their pocket. I would stick with your broker. Send them this listing, there might be a reason it didn't show up in your search.  See why your offers aren't getting accepted. Try to figure out how out HOW to make them winning offers. If the market is hot then make a stronger offer or expand your search. My market it is cooling so a few months ago is different than today. Also 5 offers in the last 7 months is not a lot, if you made 20+ that's different. 

Represent myself/unrepresented are the same thing, no?  I know the listing agent would love it, I made it clear that I was going to be asking for a major pricing concession, and that 2% would need to go toward the concession.  So in your opinion, it is better to stick with the broker that has already proven to be ineffective?  Also, is it my job to figure out why my offers weren't being accepted or my brokers job to help guide me?  Im sorry, I am just reading your post and its all about how I need to keep my broker yet figure a bunch of stuff out myself.  Thats all fine, but what exactly is the purpose of my broker? 

5 offers were in a 3 month period.  Its also indicative of the market I am looking to buy in.  There is not inventory right now, and while there was some a few months ago, it was extremely limited. 

[Russell Brazil]

Ultimately you have to improve your offers if you are getting outbid. If you are making weak offers, it doesnt matter if an agents presenting the weak offer or you're making the weak offer yourself. 

[Jesse Wexler]

Quote from @Russell Brazil:

Ultimately you have to improve your offers if you are getting outbid. If you are making weak offers, it doesnt matter if an agents presenting the weak offer or you're making the weak offer yourself. 

 Agreed.  Isn't the agents job to advise the buyer though?  If I offer 20% over ask and get outbid, but I am already at the topline of what my agent is suggesting, what else can I do differently?  In that situation I wasn't even mad, I went as high as I thought the unit was worth, and then some.  

[Benjamin Aaker]

You likely have a contract with your broker already. You should review that. They may be due a commission from you even if you find your own deal and buy it. It seems like the problem is your satisfaction with your broker. If that is the case, you need to speak with your broker or their supervisor (if one exists) about it. Many will release you from the contract if you ask but it needs to be in writing.

You can represent yourself without a license. You just can't accept commission. The seller's agent could be approached and could modify their listing agreement with the seller to waive 1/2 of their fee (the part they would pay to the buyer's agent). The seller would like this as they pay less commission. The problem with this is that you aren't paying your broker anyway, so why not use one? They usually have a huge amount of experience and can save you money in the long run.

[Wale Lawal]

@Jesse Wexler

Are you a licensed real estate agent? I suppose you could, IF you are the purchaser, AND you are a licensed agent in the state you are buying a property in. If you are unlicensed, then you are not qualified to take on that position, and you are just a buyer. You will not save on the fees, plus you will not have negotiating help, or a professional to help you through the process.

Understand that as a buyer, when you purchase from the listing/seller’s agent, you are dealing with the person working FOR the seller. Sometimes people think they will some how get a better deal that way- just consider that the person selling the home (and that agent who works for the seller) wants to get the highest price for the home. They aren’t there to help you negotiate the price down, because of contingencies like inspections or appraisals. Anything you tell them about your finances, or your motivation, can be used to their advantage.

All the best!

[Corby Goade]

If you aren't experienced, I wouldn't recommend trying to represent yourself, the listing agent would just get paid double and you wouldn't professional representation. As a realtor, I love these deals because the person representing themselves doesn't have any idea how to deal with negotiations, escrow, the contract or any of the other steps. It makes you very susceptible to being taken advantage of by an experienced agent and it doesn't save you money anyhow. 

If you aren't feeling like you are making good headway with your agent, I'd shop around a bit and find someone you think is more aggressive. 

Best of luck!

[Ecaterina Katerina Morosan]

Hi Jesse, I'm a licensed agent in NYC. You can't represent yourself if you're not licensed. By NYS law, the agent has to sign a dual agency disclosure with both you and seller. 

[Jesse Wexler]

Quote from @Benjamin Aaker:

You likely have a contract with your broker already. You should review that. They may be due a commission from you even if you find your own deal and buy it. It seems like the problem is your satisfaction with your broker. If that is the case, you need to speak with your broker or their supervisor (if one exists) about it. Many will release you from the contract if you ask but it needs to be in writing.

You can represent yourself without a license. You just can't accept commission. The seller's agent could be approached and could modify their listing agreement with the seller to waive 1/2 of their fee (the part they would pay to the buyer's agent). The seller would like this as they pay less commission. The problem with this is that you aren't paying your broker anyway, so why not use one? They usually have a huge amount of experience and can save you money in the long run.

I have no contract with my previous broker of any sort.  Seller is interested in getting X dollars for their property.  It’s as simple as that.  If the sellers again, can waive 1/2 their fee, that creates about 2% more room.   That’s what I’m going for…  Contract, escrow, closing, etc. that’s all handled with an attorney.

[Benjamin Aaker]

Seems like you've got a good plan to get this deal done. Good luck and let us know how it goes.

[Jesse Wexler]

Thanks @Benjamin Aaker.  Will do!

[Eric Hajdu]

@Jesse Wexler

I’ve never used a broker on the buy side in Brooklyn, and never had an issue. Typically the sell side is paying a higher commission if the buyer is represented by a broker, so it might be to your advantage to go at it alone.

I know with a couple new construction Brooklyn units I’ve purchased in the past, the sales agent directly told me I’d saved by not having an agent who would be due a commission.

I think as a previous comment mentioned, you really want to invest in a great real estate lawyer anytime your buying or selling in NYC. You will be communicating with them intensely once you have an accepted offer all the way until the time you close. Best of luck!

[Dave Skow]

@Jesse Wexler-  thanks for the  question ....representing yourself  sounds like  setting yourself up for possible  problems .....can you locate a  local  agent that is willing to represent you for a  smaller  fee / flat fee ?    trying to  save  2-3%  in the  selling  realtor  expense might not be  worth it  ...whats the  possible  sales price ?

[Russell Brazil]

Quote from @Ecaterina Katerina Morosan:

Hi Jesse, I'm a licensed agent in NYC. You can't represent yourself if you're not licensed. By NYS law, the agent has to sign a dual agency disclosure with both you and seller. 

 Hogwash. There is no state in the union that forces a consumer to be represented in a real estate transaction.

[Jonathan R McLaughlin]

@Jesse Wexler whatever advantage might exist in representing yourself disappears if you try and use it to cut into the price/commission.

Especially in a market where u keep getting outbid. You want to be the high bid with the savings as a bonus to either the seller or the broker.

[Ecaterina Katerina Morosan]

Quote from @Russell Brazil:

Quote from @Ecaterina Katerina Morosan:

Hi Jesse, I'm a licensed agent in NYC. You can't represent yourself if you're not licensed. By NYS law, the agent has to sign a dual agency disclosure with both you and seller. 

 Hogwash. There is no state in the union that forces a consumer to be represented in a real estate transaction.

Representing yourself and purchasing on your own is two different things. When a buyer is trying to get a portion of commission, this is "representing yourself". It can't be done without a license. Here, the buyer is trying to cut the listing agent's commission to save on the purchase price.