Buyer's Agent

[WebBoard]

From: Mike .


Re: Part 5 of the 9 biggest benefits of getting a buyer agent
From: Mike to Ross
Date: 21 Feb 2001
Time: 18:58:14

Hi Ross,

Good to see you back in the fray of the forum.

You said: "Go thru the listing agent and selling agent or with your buyer agent. And either way it still costs you the same amount of money. (Say total transaction fee = 3%.)"

My question: Does a buyer pay a transaction cost when purchasing a property by private treaty? I thought the only transaction cost was on the part of the seller who pays the seller's agent commission.

A further question: As I understand it, as a buyer's agent you do not charge the buyer directly for your services. You split the gross transaction fee on a 50/50 basis with the seller's agent. Is that correct?

If so, why do other buyer's agents not split the fee with seller's agent but charge the buyer directly for their services?

Why is there a difference of philosophy here and does your method cause a conflict of interest?

Thanks in advance, Mike

 

[WebBoard]

Jeremy

Reply: 1
From: Mike .


Re: Part 5 of the 9 biggest benefits of getting a buyer agent
From: Jeremy
Date: 21 Feb 2001
Time: 20:15:40

So if I am EXTREMELY lazy and I see a FSBO (For Sale By Owner) I might think of calling you. I doubt it though!

 

[WebBoard]

Ross

Reply: 1.1
From: Mike .


How does a buyer agent get paid ?
From: Ross
Date: 27 Feb 2001
Time: 18:52:23

Hi Mike,

How does a buyer agent get paid ?

Very complex question with about 30 different answers. But I'll give you a quick outline of how I do it...

(Why don't the other buyer agents do it the same way? Why? Because they don't know how to !!!)

Firstly, the payment of commission is a matter of contract law... NOT agency law. Therefore, a buyer agent gets paid according to their "written buyer agent agreement".

Secondly, I sell my buyer agent services from the "NO ADDITIONAL COST" marketing angle. In very simple terms, I normally split the transaction fee on a 50/50 basis.

Thirdly, I get paid inside the total purchase price. I negotiate the listing agents fee to 50%, then I insert my fee... (which is 50% of the maximum fee in QLD.)

It almost sounds too simple. (Doesn't it !!!)

That's it for now... I'll finish the argument with the traditional real estate industry over the next 5 to 10 years...

See ya

Ross Sondergeld ~ Buyer Agent

QC.RE, Dip.Bus, B.Bus, PGDip.Property

Buyerside Real Estate... on the Gold Coast

 

[WebBoard]

Kristine

Reply: 1.1.1
From: Mike .


Re: Part 5 of the 9 biggest benefits of getting a buyer agent
From: Kristine re sharing commission with buyers agents
Date: 22 Feb 2001
Time: 12:50:31

Dear Mike & Ross et al

In my post of 14 Feb re John E and his comment on perhaps licensing buyers agents, I made comments on Victorian legislation - that any person who represents another in a real estate transaction must be a licensed real estate agent - and asked for clarification of this issue in other states.

To date no one has replied to this.

Ditto the practise of approaching the legally appointed selling agent to share their commission. The Agency I work for (and I do not speak on their behalf) aims for total independance in representing our buyer client. It is our client who pays us, and no one else. There are no shared commissions, "spotters fees", secret commissions or any other form of payment except that agreed to with the client before we take on the job.

Honesty is like Justice - it must not only be done, but be seen to be done, for it to have any weight at all.

Hope that clarifies the situation regarding who pays, at least for this buyer's agent.

Regards, Kristine

[email protected]

 

[WebBoard]

Rolf

Reply: 1.1.1.1
From: Mike .


Re: Part 5 of the 9 biggest benefits of getting a buyer agent
From: Rolf
Date: 22 Feb 2001
Time: 22:18:22

Hi Kristine

It is difficult to dance at two weddings at the same time - old German saying. Reflects your "no gray" attitude- I would agree.

Please forward me info on your services for my NSW clients that have a yearning to buy in Vic.

Ta, Rolf

[email protected]

 

[WebBoard]

JohnE

Reply: 1.1.1.1.1
From: Mike .


Re: Part 5 of the 9 biggest benefits of getting a buyer agent
From: JohnE
Date: 22 Feb 2001
Time: 19:12:22

Thanks for the info on Vic. However I was thinking on something more along the lines of the regulatory requirements in the financial advice industry. The remaining questions still stand.

There doesn't seem to be anything of substance in the present licensing of real estate agents to ensure fair and ethical dealing. What is a concern to the public is that the iffy culture doesn't seem to have changed much over the years.

Presently, it is more about self regulation, isn't it? And this is not effective. What practical action has any of the real estate associations taken, or recommended, to discourage fraudulent practices such as vendor bidding??

There is a culture that needs to be challenged before it can be changed.

 

[WebBoard]

Manny

Reply: 1.1.1.1.1.1
From: Mike .


Re: Part 5 of the 9 biggest benefits of getting a buyer agent
From: Manny
Date: 22 Feb 2001
Time: 15:48:59

Hi Kristie,

what commission or other charges do your clients have to pay for when you find them a property that they end up purchasing? is it based on commission based on the purchase price? or a predetermined fee?

If you don't manage to find a property does the client still have to pay? (ie. searching for a month then they find a property elsewhere?)

Cheers, Manny

 

[WebBoard]

Kristine

Reply: 1.1.1.1.1.1.1
From: Mike .


Re: Part 5 of the 9 biggest benefits of getting a buyer agent
From: Kristine to Manny -
Date: 27 Feb 2001
Time: 10:43:47

Dear Manny

Sorry to take so long with this - I've been busy, then when I looked I'd 'lost' your post.

Please note my new email address should you wish to reply directly to me.

We negotiate the level of service and fees with each client individually. Rather than commit my agency to a quote on the Forum, may I suggest you look at REIQ Journal article where buyers agents are quoting from shared commission with selling agents (we DO NOT do this) to 2.5% of purchase price, and to the Bulletin article of January 30, 2001 where flat fees, fee for service, etc are described.

In other words, depending on the buyers agent you choose, and if you want to establish an exclusive fiduciary duty ie your agent works for you and receives no money from anyone alse regarding that transction, then you will probably be looking around 1% to 2.5% of the purchase price.

Exclusive buyer's agencies are the same principle as exclusive selling agencies - if you buy or sell during the term of the agency then you are liable to pay the agent commission.

The agency I work for also offers task fees eg attending at auction for a flat rate.

Mike posted (I think it was Mike and I don't want to leave this post to check) ACA (A Current Affair) survey results of peoples impressions of 'do you save money when using a buyers agent' and some 80% answered 'yes'.

Will you save at least the agents fee of (?) 2.5%, thereby making the use of the buyer's agent cost-neutral? You'll certainly save a lot of time, expense money and anxiety. A good buyer's agent also acts as a coach, making sure you understand (and enjoy) the whole buying process.

Sorry to step around your question. If you would like a direct quote in writing please contact me on

[email protected]

Thanks, Kristine