Whoa, Whoa, Whoa!!!!
Slak!!!
If you're gonna take advise, then at least take advise from someone who knows what they are talking about! My wife and I have owned over 50 homes personally, some bought with the listing agent and others with a buyers agent and a few for sale by owners.
Not that there aren't people here who don't have experience, but the art of real estate negotiating is not a beginners game, imo.
I've been a real estate developer all my life and recently (past 3 years) became a Realtor and started my own real estate company. Now I'm a land developer, builder and Realtor; all in one. Through my skillful knowledge of real estate negotiating my real estate company became the No.1 in the entire Region, almost instantly and we've maintained that level since.
Prepared, Prepared, Prepared and yes; Location, Location, Location.
I'll gladly give you the step by step advise that YOU SHOULD take!
First, if the home is listed on MLS, then the seller has already agreed to pay a real estate commission to the listing agent; whether you have your own Realtor or not, the amount is already set in place; it rarely changes. The seller has signed a contract to list the home with the listing agent and in that contract it will stipulate a "selling" commission portion to be paid to the person who brings the buyer to the seller, even if its the listing agent.
So understand this.... there is already two commissions in place. One for the "listing" end and one for the "selling" end. Let's assume its 6% with a 3%/3% split.
If you call up your own realtor, there will be no negotiating in the real estate commissions; period. The listing agent will take his share and your buyers agent will take his/hers. So I would (and do) do this:
1. Call the listing agent and tell him that you are interested in the property he/she has listed. Then tell him that you have a relationship with a local realtor; however if the property turns out suitable for you, in most likelihood you'll be writing a less than full price offer. Therefore, in cooperation with the sellers ability to negotiate a lower real estate commission payable, you will work with them exclusively as a dual agent. (Sorry if this is not permissible in your state; its allowable in my Province) Tell them that you'd like to meet them and view the property and if you find them able to provide a workable relationship you will proceed to use them as your buyers agent.
2. View the property and meet/greet the agent. Discuss the details of an offer; which subjects they recommend and how they feel about the property and the current market. Ask them to provide you with a list of recent sales that are comparable. See if there is a recent appraisal available.
3. If you feel comfortable with the agent, then proceed. If not, then back off and get your own agent. (I've done this many times when the listing agent didn't provide me with what I wanted or a comfortable relationship).
4. When you write the offer, let them know that you're willing to have the Realtor provide dual agency for a reduced commission; this will save the seller money and ultimately allow you to write a lower offer. Let them know that you want the revised commission written into the offer and signed/accepted by the seller, either in a commission disclosure statement or part of an addendum.
5. Write a low offer to begin with; and in this market I MEAN LOW!
Good luck Slak! I'm an expert in this field, feel free to email me anytime with any specifics that I can help you with; I would be more than pleased to offer you any assistance I can.
rob@rolyn.biz
After you have an accepted offer, its a very good idea to have a home inspection done by a professional home inspector. A subject clause in the offer should read..... "This offer is subject to the buyer receiving and satisfactorily reviewing a professional home inspection on or before November xx, 2008. This subject is for the sole benefit of the buyer and may be waived unilaterally by the same."
You should also have a subject clause for suitable financing and insurance.
It would also be a good idea to have a personal friend walk the property with you; someone that knows 'something' about homes and real estate.
Do not pay more than the highest comparable of a SOLD property; not a listed property, but a sold one! Especially in this market.
Cheers!
Good Luck
