First home buyer using a buyers agent?

Hi, I'm a first home buyer looking to engage a buyers agent who is licensed, insured, member of RE institute and does not charge upfront fee. He charges 25% percentage of the amount saved (as a result of his amazing negotiation skills!). Is this a good deal?
 
Hi, I'm a first home buyer looking to engage a buyers agent who is licensed, insured, member of RE institute and does not charge upfront fee. He charges 25% percentage of the amount saved (as a result of his amazing negotiation skills!). Is this a good deal?

No, in my opinion it is not a good deal! :eek:

The reason I say that is, who determines what is the "amount saved"? What if the asking price is $100K over the true market value? Are you going to pay $25K for the privilege of paying the "correct" price anyway?
 
How do you determine how much he saved? If you pay $100k under the asking price, perhaps the asking price was $100k over the real value of the property.

Better to work with a BA who charges a clear, flat fee. Nobody can guarantee that they'll save you money.
 
No, in my opinion it is not a good deal! :eek:

The reason I say that is, who determines what is the "amount saved"? What if the asking price is $100K over the true market value? Are you going to pay $25K for the privilege of paying the "correct" price anyway?

How do you determine how much he saved? If you pay $100k under the asking price, perhaps the asking price was $100k over the real value of the property.

Better to work with a BA who charges a clear, flat fee. Nobody can guarantee that they'll save you money.

^ Concur....
 
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