Home Buying - Are Buyers' agents a MUST?

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thePITman's avatar

thePITman

Senior Member

3,867 posts
Sep 11, 2013 10:59 AM
Looking to buy a home that is for sale by owner.
  • Do I have to use a buyer's agent?
  • If I don't use a buyer's agent, does the seller's agent still take the cut that the buyer's agent would take?
  • Or does not having a buyer's agent reduce the fees and/or money exchanged between buyer/seller?
Any clarification would be appreciated. Thanks!
Sep 11, 2013 10:59am
justincredible's avatar

justincredible

Nick Mangold

32,056 posts
Sep 11, 2013 11:04 AM
Didn't you just buy a home not too long ago?
Sep 11, 2013 11:04am
ZWICK 4 PREZ's avatar

ZWICK 4 PREZ

Senior Member

7,733 posts
Sep 11, 2013 11:15 AM
thePITman;1498940 wrote:Looking to buy a home that is for sale by owner.
  • Do I have to use a buyer's agent?
  • If I don't use a buyer's agent, does the seller's agent still take the cut that the buyer's agent would take?
  • Or does not having a buyer's agent reduce the fees and/or money exchanged between buyer/seller?
Any clarification would be appreciated. Thanks!
Why is there a sellers agent if it's FSBO?
Sep 11, 2013 11:15am
thePITman's avatar

thePITman

Senior Member

3,867 posts
Sep 11, 2013 11:24 AM
justincredible;1498942 wrote:Didn't you just buy a home not too long ago?
Yes. I bought a home over 5 years ago when I was single. Wife and I just got married a few months ago and are casually looking for a permanent home so we can start having a family. We are not desperately looking; but we keep an eye out, and if something catches our eye (like one has), we will pursue it with no obligations.
ZWICK 4 PREZ;1498945 wrote:Why is there a sellers agent if it's FSBO?
Ya know, I was thinking the same thing. I'm not really sure how this would work, with no agents involved. My agent took care of everything last time.
Sep 11, 2013 11:24am
ZWICK 4 PREZ's avatar

ZWICK 4 PREZ

Senior Member

7,733 posts
Sep 11, 2013 11:26 AM
thePITman;1498950 wrote: Ya know, I was thinking the same thing. I'm not really sure how this would work, with no agents involved. My agent took care of everything last time.
He makes a purchase agreement, you accept it, you close.
Sep 11, 2013 11:26am
thePITman's avatar

thePITman

Senior Member

3,867 posts
Sep 11, 2013 11:37 AM
ZWICK 4 PREZ;1498953 wrote:He makes a purchase agreement, you accept it, you close.
So no 3rd parties (other than signing mortgage/closing costs) taking any fees out? Sounds nice. Thanks.
Sep 11, 2013 11:37am
W

WebFire

Go Bucks!

14,779 posts
Sep 11, 2013 11:44 AM
No agents required on FSBO. No buyer's agent needed for anything ever, unless you are lazy. If you have a buyer's agent, they split the commission with the seller's agent, which I think is really dumb.
Sep 11, 2013 11:44am
ernest_t_bass's avatar

ernest_t_bass

12th Son of the Lama

24,984 posts
Sep 11, 2013 11:46 AM
The bank can take care of everything.
Sep 11, 2013 11:46am
ernest_t_bass's avatar

ernest_t_bass

12th Son of the Lama

24,984 posts
Sep 11, 2013 11:47 AM
thePITman;1498956 wrote:So no 3rd parties (other than signing mortgage/closing costs) taking any fees out? Sounds nice. Thanks.
There are still fees, in the form of buyer/seller closing costs. You can look to wrap those into loan, if necessary.
Sep 11, 2013 11:47am
Commander of Awesome's avatar

Commander of Awesome

Senior Pwner

23,151 posts
Sep 11, 2013 11:48 AM
Just got married and already trying to have a family? You don't mess around.
Sep 11, 2013 11:48am
T

thavoice

Senior Member

14,376 posts
Sep 11, 2013 11:54 AM
Commander of Awesome;1498963 wrote:Just got married and already trying to have a family? You don't mess around.
Well yo know how it is....gotta get the marriage, house, and family thing done quickly so you can move onto the divorce phase.
Sep 11, 2013 11:54am
W

WebFire

Go Bucks!

14,779 posts
Sep 11, 2013 11:59 AM
ernest_t_bass;1498961 wrote:There are still fees, in the form of buyer/seller closing costs. You can look to wrap those into loan, if necessary.
All the fees should be on the bank end (or taken care of by the bank), so it shouldn't be too difficult.
Sep 11, 2013 11:59am
ernest_t_bass's avatar

ernest_t_bass

12th Son of the Lama

24,984 posts
Sep 11, 2013 12:02 PM
thavoice;1498965 wrote:Well yo know how it is....gotta get the marriage, house, and family thing done quickly so you can move onto the divorce phase.
Are you in that phase yet?
Sep 11, 2013 12:02pm
LJ's avatar

LJ

Senior Member

16,351 posts
Sep 11, 2013 12:08 PM
You need a lawyer to assist with the contract and your due dilligence period. You need a solid contract incase you have to get out of the deal due to a bad inspection or appraisal.

All the fees should be on the bank end (or taken care of by the bank), so it shouldn't be too difficult.
Huh? There is title insurance, prepaids, title search, survey etc that are all responsibility of the 2 parties, not the bank. The title company prepares the HUD1 and that will have all the fees.
Sep 11, 2013 12:08pm
OSH's avatar

OSH

Kosh B'Gosh

4,145 posts
Sep 11, 2013 12:19 PM
thePITman;1498940 wrote:Looking to buy a home that is for sale by owner.
  • Do I have to use a buyer's agent?
  • If I don't use a buyer's agent, does the seller's agent still take the cut that the buyer's agent would take?
  • Or does not having a buyer's agent reduce the fees and/or money exchanged between buyer/seller?
Any clarification would be appreciated. Thanks!
I'm doing a FSBO right now -- particularly a rent-to-own.

We have no buyer's agent nor does our seller. No real need for it. I am working with a bank to ensure everything goes smoothly, but the banker is a friend of mine. We are ensuring the contract is drawn up properly and everything is what it's supposed to be (regarding closing costs, etc.).

The bank will also be who we get our loan through, so they'll already be one step ahead when we get that process started.
Sep 11, 2013 12:19pm
ernest_t_bass's avatar

ernest_t_bass

12th Son of the Lama

24,984 posts
Sep 11, 2013 12:30 PM
LJ;1498980 wrote:You need a lawyer to assist with the contract and your due dilligence period. You need a solid contract incase you have to get out of the deal due to a bad inspection or appraisal.


Huh? There is title insurance, prepaids, title search, survey etc that are all responsibility of the 2 parties, not the bank. The title company prepares the HUD1 and that will have all the fees.
When I bought my first house, the bank literally took care of everything besides the appraisal.
Sep 11, 2013 12:30pm
LJ's avatar

LJ

Senior Member

16,351 posts
Sep 11, 2013 12:34 PM
ernest_t_bass;1498993 wrote:When I bought my first house, the bank literally took care of everything besides the appraisal.
Well the seller chooses the title agency, and your bank sends your loan info to the title agency. The title agency basically handles everything beyond your loan. Typically the seller's agent will have title agencies that they work with, so there isn't much work done by the seller. With a FSBO, it's on the seller to look at different title agencies to determine which insurance, survey and etc that they want.
Sep 11, 2013 12:34pm
V

vball10set

paying it forward

24,795 posts
Sep 11, 2013 12:37 PM
thavoice;1498965 wrote:Well yo know how it is....gotta get the marriage, house, and family thing done quickly so you can move onto the divorce phase.
ernest_t_bass;1498975 wrote:Are you in that phase yet?
lol
Sep 11, 2013 12:37pm