 The
seller's paying, so get your own agent
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 Dear
Steve,
I am buying a house without an agent. If the seller
of a home has an agent, do I have to pay the agent's commission? --
Sadaf
 Dear
Sadaf,
Though there are many different arrangements
that the buyer and seller can settle upon with their agents, the
buyer's agent is generally paid out of the commission that the seller
has agreed to pay the listing agent. So no, you probably won't be
asked to pay any commission in this purchase.
But that raises another question: Under such an arrangement,
why not use a buyer's agent to run interference for you?
I realize you might enjoy a slight savings on the
purchase, providing the seller agrees to lower the home price as
a concession to his savings of half the standard 6 percent commission,
since there's no buyer's agent to compensate. That's assuming the
seller's agent will agree to such arrangement. (Many will, particularly
agents who haven't rung up too many sales lately.)
You may be thinking the seller may lower his price
by the amount a buyer's agent would get -- but it's not likely.
If you contacted the listing agent to see the house, that agent
is going to feel entitled to both ends of the commission. Unless
the negotiations over price become a sticking point, that agent
probably won't volunteer to reduce the fee.
But is it worth it? Are you willing to deal with the
extra effort, aggravation and time to do the research necessary
to avoid overpaying for the home? Sure, you can find your own home
inspector and closing agents and work your way down the checklist
of other to-dos in the home-buying process. But do you feel comfortable
performing your own comparative, or "comp," market analysis.
Are you a good negotiator?
Regardless, don't expect the seller's agent to do
your footwork. In some states, the listing agent has an exclusive
duty to the seller. Having your own agent, in the end, just might
save you from making a wrong decision that could cost you thousands
of dollars. It is also safe to say that going without representation
in this kind of a complex capital purchase is a gamble under any
circumstances.
A buyer's agent, by nature, has an exclusive fiduciary
duty to you and is obligated to look out for your best interests.
That agent may also help guide you to the right lender or most-thorough
inspector.
All said, I strongly suggest that you hire an agent
this time around, especially if you're a first-time home buyer.
Either way, best of luck to you in shopping
for a home.
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