I understand this, but I also understand the conflict of interest when they make more if you spend more. I may trust them more if there was a fixed fee for their service, rather than a commission based on how much you spend. Greed has a funny way of affecting people - especially when houses are moving slowly in the market.

All the more reason it's flabbergasting to me that "dual agency" relationships are even allowed. There's an inherent and irreconcilable conflict of interest. How it's even permitted is beyond me.

In absence of any sort of common sense in the laws that govern this stuff, get a BUYER'S AGENT (and use those exact words) who is legally bound to represent you as the buyer. Have them sign an agreement to this effect and read all the disclosures carefully.

Even if you have a buyer's agent - think about it for a second. What's in your interest as a buyer is getting the best deal. As such, this runs completely against the grain of maximizing commission, which is ultimately directly tied to the sales price for any agent - whether buyer's or seller's. As such, it's doubly puzzling to me how a buyer's agent can on the one hand claim to be bound by fiduciary duty to YOUR interests (best price) and on the other hand get paid on a commission basis.

The system sucks and is inherently riddled with stupid contradictions like these. The only way around it is to (hopefully) find someone who's honest and plays above board and values repeat customers and long-term relationships (good luck with that) or to do FSBO transactions exclusively.

Commission works for some things. Representing a buyer is absolutely not one of them.

Jeff, you just nailed why 99% of them are lazy worthless crooks. It's in THEIR BEST INTERESTS for you to pay as much as possible, because they get a straight percentage. Pay more, they make more. Ultimately, I treat realtors as a means to an end. I always know more about the house/neighborhood I'm going to look at than they do. Don't think they're your friend, do your homework before. Then you'll get the joy of watching them do a double take when you tell them your offer.:p "Well, you might offend them......."

FSBO isn't a good option, as there's relatively few houses to choose from. If I ever find an honest, professional realtor, they'll get my business for life. Been through 5 now, still looking.

While it's true that a higher purchase price equals a higher commission, the other side of the coin is that there is no commission at all if the deal does not close. It is to the realtor's best interest to stay on top of a deal and make sure that all the required steps are properly met, to the buyer's and seller's satisfaction. Most Purchase and Sale Agreements do not lead to a closed sale and a commission. Either the offer is rejected, or the sale fails because a contingency is not met, financing fails, an inspection reveals serious flaws, yada yada...

I know a couple very successful realtors (mine is one of them), and the purchase price is a minor point to them. Their big goal is to see the deal all the way through.

The realtors that push for a high purchase price, then send everything to escrow and simply wait for a commission check don't last long as realtors.

Then offer to pay a flat rate or hourly billed rate. Some one will take you up on that deal. Pay them even if you don't buy. Throw in a bonus if you close on something. Best to go with an independent broker who has flexibility in their rates.

There's no law mandating the agent get paid on a commission split.

That actually is a decent idea.

But then again, I think FSBO or OWC is a better idea right now. :)

lol Well I told her $120,000 their asking $139,000 that puts me well above the 79% I was told to offer on foreclosed properties. Tire kicker:rolleyes:


"Oh, and sorry if the story sounds a bit fishy to me. If I had all my ducks in a row, was pre-qualified, and found a house that I was ready to make a move on, I could find a buyer's agent and submit an offer within an hour."

This is the first time Ive ever put a offer in on a house. I though It was pretty much the same as buying a car. I mean you look the agent straight in the eye make a offer and shake their hand. Buyers agent???

I don't see any initial problem with your offer. It's just that your position/situation sounded a bit strange. First you say you were pre-approved and made an offer. Then, it was just verbal. Then you say she blew you off and you needed to get your financing done. Then you say you don't have a "house bug" and would have to like the house a WHOLE LOT, or you will just keep renting. All a bit confusing, and it sounded like you really were not very serious to me (i.e. tire kicker).

That said, it is unfortunate that your first experience with an agent was so terrible. I wouldn't hesitate to track her down and call her broker and file a formal complaint with your State's real estate licensing board. But for now, focus on finding a competent agent and put an offer together if you still want the house. Even if this is your first home purchase, a good agent can walk you through everything, explain the details, and mitigate your frustration. Go interview a few and report back! Good luck.
SmileWavy

I'm licensed here in California. The circumstances you describe are very unusual. Most agents/Brokers are very keen to submit any reasonable offer. In fact a listing agent has a fiduciary obligation to present all offers from a qualified buyer to the seller. Maximizing the price to get a better commission really isn't a factor unless we're in a multiple bidding situation. Most brokers just want to make the deal.

Possible reasons for this agent/broker not submitting an offer are, A) If she's the listing broker maybe she is complacent knowing that it is her listing and she feels confident that she will soon have a stronger offer. B) She has a personal interest in purchasing the property or C) Is there a question as to whether or not you can qualify for a loan?

If she is the listing agent (or not) you can always go to another agent, any agent to represent you the buyer, and as long as your a qualified buyer, (Some evidentiary statement from a bank or a lender, with cash for the down and closing) they will generally be more than enthusiastic about writing up your offer!

Ive been looking for about 2 years. I have a budget and this house even with all the work needed fit. I have found some amazing property's for almost give aways. But this is the first house that compelled me to talk with the bank. I found this house in the spring and it was way out of my price range. But it gives you a idea of all the vacant homes in the Midwest and how cheap SQ FT can be bought. This house sold for $380,000.

http://forums.pelicanparts.com/off-topic-discussions/400209-attention-realtors-house-flippers-midwest.html

Probably B. But It could be C. I have a letter from the bank saying Im approved.
I really wouldn't think shed question my ability to qualify for a 100,000 loan. Most prefab homes far exceed that. As far as mortgages go 100,000 is a pretty small sum. But maybe she thought I was bum :D

http://www.realestateabc.com/outlook/overall.htm