Broker fees when an agent isnt used

Seller is locked in to go through the broker if they are still within the terms of their contract whether the broker is the one doing or the work or not.

But as the buyer without an agent, is there negotiating power on the buyers behalf of 3% since the buyer isnt using an agent or is it a moot point. We as the buyers would like to take 3% off the asking price since we arent using an agent. Is that fair to ask for or not? Ty for your comments.

The seller's agent will like you more (but will never directly say so) if you are not using your own agent because they will get the full commission at close of sale. It's possible that the seller's contract with their agent has stipulated that if the buyer does not use an agent, then the commission will be less than 6%, but the agent still stands to get more than the typical 3% if splitting with a buyer's agent. Bottom line, you have more room to negotiate if you are not using an agent. But be warned: when I bought the first time, I was extremely naive and placed an offer on the apt. i ultimately ended up buying without an agent. I know I got the place because I did not have an agent, but the coop / board package process was much more difficult without feeling like I had an agent on "my" side that I had specifically chosen to work with. If you are a first-time buyer of a coop, I would recommend that you consider using a broker to guide you through the process. For a condo, perhaps it is less useful to have your own agent.

The seller is bound by the contract he / she has with the listing broker regardless of whether there is a buyer broker involved. While there can be a clause inserted that there be a "reduced" commission if it's a "direct" sale, the reality is that most sellers don't request it and most brokers won't do it. Since the listing agreement is between the listing broker and the seller, the buyer has no say in what commission the seller will pay the listing broker. But that doesn't mean you can't press for a lower overall price.

The natural question is "3% off of WHAT price?" The ASKING price? A buyer broker wouldn't (shouldn't) start at the asking price - why should you?

The other question is do you need / want a broker representing your interests? As kas242 mentions, a buyer broker does more than search listings and schedule appointments. I'm a buyer broker who works mostly with first-timers. That also includes tasks such as advising, negotiation, preparing the purchase offer, dealing with the listing agent, attorneys, lender, appraiser, management company, Board (if a Co-op), etc., as required, as well as preparation of the Board package (if a Co-op) - in short, managing the transaction from beginning to end. Some buyers might feel comfortable or even prefer doing these things themselves - but most don't. If you're the independent type AND you sense you can get a better bottom line number yourself, then go for it. And the seller's agent WILL like you more.

FYI - while most listing agreements in Manhattan are listed at 6% commission, many others are written at 5%, or less. To avoid the charge of "collusion / anti-trust violations", fees are, by law, negotiable, and there is no "standard" fee.

Ty for the feedback, helpful info.

We as the buyers would like to take 3% off the asking price since we arent using an agent. Is that fair to ask for or not? Ty for your comments

-- Why not ask about it even if you using an agent (In other words get all the help you need and still get 3% off)? Why pay attention to what they are asking anyway, this is not the way to make an offer.

elena
(broker)