Jan
29

Real estate agent fees when buying a foreclosure?

Question: Real estate agent fees when buying a foreclosure?
I’m a first time home buyer and I’m trying to learn some of the basics of the home buying process. I’m thinking of finding a real estate agent. However, I  want to know if  Iwould have to sign one of those exclusivity contracts and, if I were to buy a foreclosed home, where would their comission come from?

Best answer:

 

Exclusive right to represent buyers agreements have been gaining momentum recently. I don’t use them very much.  I believe that if an agent is good at their job as a real estate professional the client will stick with you because they trust you not because they are legally obligated. There is another side to this is that Real estate agents get stuck working for free way too often by agent jumping buyers that contact  every Real estate agent in a 50 mile radius.

The real estate commission would come from the sellers.  Real estate commisions are incorporated into the purchase price of the home. The real estate commission is set by the homes seller.

What do you think? Answer below!

About Kristofer Nance

Kristofer Nance, Real Estate Broker with Nance & Associates, Realtors in Fredericksburg VA
Owner/Agent of Nance & Associates, Insurance.

Comments

  1. you do not need an exclusivity agreement and seller pays commission.

    you cannot look at home by yourself so you have to call an agent. At a minimum you have to call listing agent to let you in.

    whomever shows you the home receives the “buy side” commission. if listing agent shows you home then they will get the buy side commission.

  2. In North Texas where I practice Real Estate (Dallas/Ft Worth) 100% of all banks list their homes with Real Estate agents. They have no desire to sell direct and will not talk with you if you call them direct to ask about a house.

    So you can either deal direct with the sellers’s agent (whose job it is to get as good a deal for the seller as they can) or you can use a buyer’s agent to look out for your best interest.

    The commission for your buyer’s agent would be paid out of the commission the bank is paying to their listing agent. You would be very foolish to do this without representation and the representation would not cost you anything.

  3. You are advised to contract with a buyer agent real estate representative in your endeavor to purchase a foreclosed home. Understand that well over 95% of foreclosed homes are listed with real estate agencies for disposition by lenders. The lender involved will pay the commission involved in the sale. Do not use the listing agent for such a purchase, since that agent represents the seller (lender) involved with the property. A buyer agent will represent YOUR interests, and will share the commission offered with the listing agent.

    You can find a certified buyer agent at the Real Estate Buyer Agent Council using the supplied URL.

  4. You should DEFINITELY find a realtor to be your buyer’s agent, especially since you are first-time buyers.

    The realtor commissions are paid by the seller (whether it’s a bank or not), not by the buyer. You do not have to sign a contract; the seller signs a contract with the listing realtor.

  5. I bought a home in foreclosure 3 months ago and you SHOULD ABSOLUTELY WORK WITH A REAL ESTATE AGENT. As a first time home buyer myself, there are many situations that come up and you need someone who is experienced to be working for you. And that is the key your real estate agent should be working for you!

    I worked with 3 different realtors before we found someone that worked for us and we did not sign exclusivity contracts with any of the realtors. The only time you enter an agreement with your realtor is when you go to make an offer on a property.

    The commission is paid for by the owner, in the case of a foreclosure, this is the bank.

    But like I mentioned it is extremely important to have an agent. When we were buying our house, the bank that owned the property had certain rules that we had to abide by. For example they determined the closing date and for every day we went past that closing date, we would have to pay the bank $ 100 a day. Our realtor was on top of everyone, especially the mortgage broker, to make sure we closed on this date. Your mortgage is really where you will get held up in the process so having our realtor to deal with everyone and expedite the process is why we are now happy homeowners.

  6. marlenaRE says:

    A real estate agent has access to more listings than your average home buyer. When looking into bank owned foreclosures, this is especially true. I recommend that you contact an agent near you, and tell them your price range, they will email you some properties in your range.

  7. Buying a foreclosure home is a great idea in times like this, because banks have more homes on their hands than ever before, and they are desperate to get rid of them. This desperation means that these homes are super cheap. However, finding them can be tricky. Many real estate websites will list foreclosures, some don’t. However, I would definitely recommend getting a real estate agent so that you can better negotiate with that bank. In most cases their commission would come from the person/bank actually selling the home (not the buyer).

    Good luck with your home purchase!

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