Buying a house without a realtor [split from a 12 year bump] - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

pseudoreality · 01-24-2016, 12:22 PM

Old bump, but there is some interesting and relevant information in here for me. I am looking at making an offer on a house that is FSBO (Property Guys). The offer will be contingent on me selling my home, but I likely will getting a realtor to assist in my sale for a few reasons (emotional attachment to the house, filtering out non-serious buyers, better advertisement, etc.). Now I'm wondering if there is any benefit in getting the realtor I plan on hiring to sell my house involved in my purchase? I'm thinking not. It might annoy the sellers who trying to avoid paying commission and I just don't see what benefit a realtor can add at this point. We've pretty much already agreed on all the terms and the seller is really good to deal with.

Oh, I was also going to mention I considered the rental aspect too as my existing house is in prime rental location, but I just don't want the hassle of being a landlord.

ken0042 · 01-24-2016, 01:13 PM

In the listing- is there a condition for what the buyer's realtor gets paid? Have you already worked out a purchase price based on you not having a realtor?

Myself- if the seller will pay for a realtor- I'd say get one. If the deal is already done based upon them not paying for a realtor, I'd ask your selling realtor what he would charge you to represent you.

All it takes is you missing one critical detail- and it could cost you big time.

pseudoreality · 01-24-2016, 02:06 PM

Quote:

Originally Posted by ken0042

In the listing- is there a condition for what the buyer's realtor gets paid? Have you already worked out a purchase price based on you not having a realtor?

No and no. They have dropped the asking price a fair bit and we are likely not going to put an offer in too much lower than the current ask. Also, we have already discussed how our offer is going to be conditional on us selling our existing property and we don't plan on listing until spring. They are cool with that and very flexible on closing dates.

Quote:

Originally Posted by ken0042

Myself- if the seller will pay for a realtor- I'd say get one. If the deal is already done based upon them not paying for a realtor, I'd ask your selling realtor what he would charge you to represent you.

All it takes is you missing one critical detail- and it could cost you big time.

I just don't see what critical detail could be missing that would cost us. The paper work, including the offer, will still go through my lawyer. When I first bought my house I was surprised that the paper work still had to go through a lawyer. I thought that's why realtors get licensed, but no. Also, in Yellowknife buyers are typically not represented by realtors. With a such a small market there are few listings so you don't need a realtor help you find anything. One guy recently brought in buyers realtor services and it kind of upset the old timers that have pocketing double commission for a while.

ken0042 · 01-24-2016, 02:26 PM

I bought a piece of land in Manitoba years ago for $8000. Low selling price so didn't use a realtor. I paid more for legal fees in that transaction that I have in my next 3 transactions. Because now I was paying a lawyer 3 figures per hour to do the job of a realtor.

fundmark19 · 01-24-2016, 03:51 PM

Why wouldn't you use a realtor doesn't cost you anything and I am sure if you use them to sell your house you could work something out. It is a free insurance policy if something goes wrong.

Message Travis I am sure he can provide help!

Regulator75 · 01-24-2016, 04:54 PM

12 year bump, nice.

Winsor_Pilates · 01-24-2016, 09:50 PM

Quote:

Originally Posted by pseudoreality

Old bump, but there is some interesting and relevant information in here for me. I am looking at making an offer on a house that is FSBO (Property Guys). The offer will be contingent on me selling my home, but I likely will getting a realtor to assist in my sale for a few reasons (emotional attachment to the house, filtering out non-serious buyers, better advertisement, etc.). Now I'm wondering if there is any benefit in getting the realtor I plan on hiring to sell my house involved in my purchase? I'm thinking not. It might annoy the sellers who trying to avoid paying commission and I just don't see what benefit a realtor can add at this point. We've pretty much already agreed on all the terms and the seller is really good to deal with.

A couple points (from a realtor so take as you will).

-Your agent may find something about the property or pricing you have not noticed or had full information on. Not that you're not diligent or capable, but some of us are pretty good at pointing out items most people don't consider when not doing this everyday.
It sounds like you are pretty far into the terms and negotiation, so maybe too late for that anyway or you don't feel any benefit is likely.

-Lets assume the realtor will not offer any additional benefit on your purchase. They may agree to a lower listing price on your sale for being part of the purchase(if seller will pay commission that is).
For example: I have 1 listing rate for most properties and another for repeat clients. If I was the agent in your example, I would be offering a reduces listing commission for being involved in the purchase transaction.

oilyfan · 01-24-2016, 10:13 PM

I sold two houses in Edmonton, before moving here, through Comfree. Comfree don't seem to be very big in Calgary though.

It is a bit stressful because there is nobody to blame when your house isn't selling. In both cases we priced the house too high, but then adjusted as time went by and sold. It took a bit longer, but combined we saved at least $15,000. Well worth it.

2ArmBands · 01-25-2016, 06:19 AM

nm

ken0042 · 01-25-2016, 07:45 AM

Quote:

Originally Posted by oilyfan

It is a bit stressful because there is nobody to blame when your house isn't selling. In both cases we priced the house too high, but then adjusted as time went by and sold. It took a bit longer, but combined we saved at least $15,000. Well worth it.

How much did you have to reduce your asking price by?

OMG!WTF! · 01-25-2016, 09:50 AM

I think if you have something fairly unique or if the market is hauling ass, you can do pretty well selling yourself. If you're one of a dozen cookie cutters you'd better be cheaper by a commission or two if you want to get an offer.

As an alternative, I've had unique properties in good markets that I've given to realtors to treat as their own fsbo....not listed on mls but promoted through their websites and open houses. I've sold two that way and it was a good way to go. No selling commission and a decent price. I need the prodding of a good realtor to stick with a fair price rather than taking the first offer.

I did sell one on Comfree once but kind of by accident. My friend wanted to buy the house but his mortgage agent suggested it needed to be an arm's length transaction. So I listed on Comfree not expecting any results. My friend didn't end up buying it but the one guy who looked at it through Comfree did a few months down the road. I think it was a case of the perfect house for that one particular buyer....so luck.