Even though I have yet to persuade a home buyer to whipsaw sellers using my strategy, I thought I would pass along a tip for buyers on getting a better deal from your buyer’s agent — no matter where you might happen to be.
I happens that I have a friend who is moving soon, but not to Phoenix, alas. He took my advice and asked the question — “How much do you charge?” — of a potential buyer’s agent. The answer he got in return was rich in tap-dancing but not in results, so I wrote a model follow-up, shown below, for pressing the point.
Before we get to that, we need to consider some issues.
First, a rebate from your buyer’s agent may not be lawful in your state. I consider this absurd and obscene, but your state’s Association of Realtors may be keeping your state legislature as a special pet.
Second, if homes sell for lousy money where you’re buying, don’t get cheeky. A 3% commission on a $60,000 house is eighteen-hundred bucks. I consider that starvation wages, a clarion call to local Realtors to “find your passion” elsewhere.
But, third, a premium price is only justified for a premium product. If you’re buying investment real estate, you should pay Jeff Brown whatever he wants. But ordinary buyer’s agents are not a scarce commodity — too much the contrary. If a prospective agent huffs and puffs that he’s worth more because he charges more — press on. If an agent really is too busy to work with you, she might actually be worth more money — but she might not be able to deliver the value anyway.
But: Right now, the world is crawling with underemployed Realtors. If one won’t make a deal, the next one will — if you are willing to negotiate to hang onto your own money.
Here’s the language that I wrote, which you can easily adapt to your own circumstances:
Dear Realtor:
I do anticipate working with a buyer’s agent when I make my move. However, I believe I am justified in regarding myself as “a bird in the hand” for several Read more
