Is $9,000 a fair price for filling out paperwork?

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Mcdonna1980_IHB

Mcdonna1980_IHB

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I found a house that I want to put an offer on. However, I'm not working with a real estate agent. I asked the seller's agent if she would write the offer for me for a nominal commission. She said she would do it for 1.5% which equates to about $9,000 given my offer would be for $600,000. I was kind of shocked by this as I feel the amount of work she will be doing for me does not command $9,000. As far as I'm aware she will just be filling out a contract for me. Am I missing something here?



What do you think? What are my alternatives? Can I write an offer without an agent? Would it be best if I paid a real estate attorney to draw up the offer? Any other suggestions?
 
I am surprised you would offer to pay her anything for representing you. Since you offered, I'm not surprised she'd try to take you up on it, though. It is customary to have all commissions paid by the seller. If you went to obtain another agent to represent you, she'd have to split her commission and lose money, so of course I don't think you should have to pay - but why in the world did you offer? I am really curious. She would be acting as a dual agent and already raking in all of the commission.
 
Absolutely not. You can write the offer yourself with just a bit of research. You can also ask that you choose the title company and once you have an accepted offer, they will pretty much do the rest for you. We bought our house without an agent involved in any part of the transaction. You can also get a realtor, since you aren't the one paying the commissions. Either way, what she is proposing only makes sense for her.
 
[quote author="SoCal78" date=1232338297]I am surprised you would offer to pay her anything for representing you. Since you offered, I'm not surprised she'd try to take you up on it, though. As far as I'm aware, it is customary to have all commissions paid by the seller. If you went to obtain another agent to represent you, she'd have to split her commission and lose money, so of course I don't think you should have to pay - but why in the world did you offer? I am really curious. Hoping to get a lower sales price? She would be acting as a dual agent and already raking in all of the commission.</blockquote>


Well, at first I did suggested that she agree to take no commission from my side. However, she refused. She claimed liabilty risk as the justification for me paying her to represent me. So, then I asked if she would agree to a nomial commission. But my definition of nominal and mine are completely different.
 
She would be a dual agent, I see no purpose in a paperwork fee. She is going to take all of the commission, that's all, enough said. Now if you don't like her and the conflict of interest this represents, pick an agent you do like. If you don't, she'll get all of the commission anyway. Where is this house?
 
[quote author="tmare" date=1232338864]Absolutely not. You can write the offer yourself with just a bit of research. You can also ask that you choose the title company and once you have an accepted offer, they will pretty much do the rest for you. We bought our house without an agent involved in any part of the transaction. You can also get a realtor, since you aren't the one paying the commissions. Either way, what she is proposing only makes sense for her.</blockquote>


Aren't I in fact paying for the commissions since the seller pays the agents in turn with my money? My rationale is if I put in the offer that no commission will be paid on the buyers end, the seller will be more likely to accept a lower price from me.
 
So if I understand you correctly - you asked the agent to kick back a portion of the commission to you then when she said no you offered her a nominal fee to represent you.



The only thing is - the amount of commission paid to the agent/s isn't up to you as the buyer. <em>It is a separate contract made between the seller and the agent/s.</em>
 
Yes, or whatever commission was already negotiated by the seller with her. If another agent helps, they get half. You are really only negotiating the price, you can say you will offer a lower price because you don't have an agent, but it doesn't help anyone. The seller is still contractually obligated to pay the percentage negotiated. If I am wrong, I'd be surprised, so maybe PM IrvineRealtor and check it out.
 
[quote author="Mcdonna1980" date=1232339979]If I do put in the offer by myself is she still able to collect the full 6% commission?</blockquote>


Yes. But why would you want to write up the offer yourself when she is already being paid to provide that service for you?



I personally will not work with a dual agent to represent me while representing the other party at the same time. I feel there is too much conflict of interest.
 
My suggestion: hire a real estate attorney to represent you on an hourly basis. Won't cost you $9000, and you can make sure everything is in order.
 
[quote author="SoCal78" date=1232340151]So if I understand you correctly - you asked the agent to kick back a portion of the commission to you then when she said no you offered her a nominal fee to represent you.



The only thing is - the amount of commission paid to the agent/s isn't up to you as the buyer. It is a separate contract made between the seller and the agent/s.</blockquote>


No, what I was trying to negotiate is that she would only be paid half of the commission the seller agreed to. For example, say the commission is 6% she would only get 3%.
 
[quote author="Mcdonna1980" date=1232340895][quote author="SoCal78" date=1232340151]So if I understand you correctly - you asked the agent to kick back a portion of the commission to you then when she said no you offered her a nominal fee to represent you.



The only thing is - the amount of commission paid to the agent/s isn't up to you as the buyer. It is a separate contract made between the seller and the agent/s.</blockquote>


No, what I was trying to negotiate is that she would only be paid half of the commission the seller agreed to. For example, say the commission is 6% she would only get 3%.</blockquote>


Never going to happen. Get an agent.
 
[quote author="SoCal78" date=1232340542][quote author="Mcdonna1980" date=1232339979]If I do put in the offer by myself is she still able to collect the full 6% commission?</blockquote>


Yes. But why would you want to write up the offer yourself when she is already being paid to provide that service for you?



I personally will not work with a dual agent to represent me while representing the other party at the same time. I feel there is too much conflict of interest.</blockquote>


I did not realize that she could collect the full commission if I was acting as agent on my behalf. IR2 can you clarify this? If I'm acting as my own agent can the seller's agent still collect the full commission?
 
I agree, it's not going to happen. The seller has a contract with the agent that has been signed before you ever came into the picture. I've been a buyer and a seller. This is how it works. Any efforts on your part to represent yourself in an attempt to save money will be a waste of time. Attempting your own negotiations and navigating the paperwork without proper experience can also be to your detriment. Call Deuce.
 
[quote author="Mcdonna1980" date=1232337041]I found a house that I want to put an offer on. However, I'm not working with a real estate agent. I asked the seller's agent if she would write the offer for me for a nominal commission. She said she would do it for 1.5% which equates to about $9,000 given my offer would be for $600,000. I was kind of shocked by this as I feel the amount of work she will be doing for me does not command $9,000. As far as I'm aware she will just be filling out a contract for me. Am I missing something here?



What do you think? What are my alternatives? Can I write an offer without an agent? Would it be best if I paid a real estate attorney to draw up the offer? Any other suggestions?</blockquote>
Don't ever get a seller's agent to represent you as the buyer. They will not represent as well as their interests are more towards helping the seller. She would already make a full commission and now wants to charge you another 1.5%...what a greedy bizatch.
 
[quote author="Mcdonna1980" date=1232341316][quote author="SoCal78" date=1232340542][quote author="Mcdonna1980" date=1232339979]If I do put in the offer by myself is she still able to collect the full 6% commission?</blockquote>


Yes. But why would you want to write up the offer yourself when she is already being paid to provide that service for you?



I personally will not work with a dual agent to represent me while representing the other party at the same time. I feel there is too much conflict of interest.</blockquote>


I did not realize that she could collect the full commission if I was acting as agent on my behalf. IR2 can you clarify this? If I'm acting as my own agent can the seller's agent still collect the full commission?</blockquote>
Yes, she would get the full commission if you act as your own agent or you have her represent you.
 
[quote author="usctrojanman29" date=1232341532][quote author="Mcdonna1980" date=1232341316][quote author="SoCal78" date=1232340542][quote author="Mcdonna1980" date=1232339979]If I do put in the offer by myself is she still able to collect the full 6% commission?</blockquote>


Yes. But why would you want to write up the offer yourself when she is already being paid to provide that service for you?



I personally will not work with a dual agent to represent me while representing the other party at the same time. I feel there is too much conflict of interest.</blockquote>


I did not realize that she could collect the full commission if I was acting as agent on my behalf. IR2 can you clarify this? If I'm acting as my own agent can the seller's agent still collect the full commission?</blockquote>
Yes, she would get the full commission if you act as your own agent or you have her represent you.</blockquote>


What if I put in my contract that she would be paid no more than 3% commission by the seller if my offer was accepted?
 
You are fighting a losing battle that has been fought a million times before. She already has a contract, are you seeking to nullify the contract she has with the seller? Again, not going to happen.
 
[quote author="tmare" date=1232343156]You are fighting a losing battle that has been fought a million times before. She already has a contract, are you seeking to nullify the contract she has with the seller? Again, not going to happen.</blockquote>


Okay I see that this is not going to work. Thank you everyone for all the advice. I had my suspicions about this idea not working in my favor and that is why I posted the idea on the blog.
 
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