Can you get a reduced price because you're an unrepresented buyer?

[vicki]

I appreciate one of your partner brokers reaching out. We do not have/use a buying agent at this time. As far as their statement about if only one broker is involved, they keep the whole commission that is not entirely true. We have been successful negotiating that point on past sales (where we received a reduction in price because we did not have an agent). As well, on the other side, our contract w/ the brokers that sold our last apartment had a clause that stipulated they would get less of a commission if the sale was with only a sell-side broker.

All of that aside, I am happy to review any listings you think may fit our needs. We are pretty specific with what we are looking for and I think we have a very current view of the market, but we are always open to new ideas/properties.

[HauseitAdmin]

Hi, thank you so much for taking a look at their offer and getting back to us!

Since you’re looking in such a confined area, it’s a good bet you have a handle on the search. However, a buyer's broker can still help guide you through the rest of the process, from offer negotiation, pricing, board package through closing.

Regarding commission structures, yes occasionally a firm will agree to say 5% if the buyer comes direct, vs 6% for a regular co-broked deal. However, as a buyer it’s pretty hard to verify this. Any listing agent will obviously be incentivized to find a direct buyer so they can keep all 6%, so how do you know they’re telling you the truth when they say that the seller will get a “better deal” if you go direct?

The only way to guaranteed get some of the commission back that the seller paid so you could have representation is through a buyer closing credit like our partner brokers are offering. Happy to discuss this with you by phone. Do you have a few minutes?

[showtime]

It's very dangerous to assume that you're getting a better deal because you went direct. How on earth do you plan on verifying this? Let me guess, did all of this go down over the telephone? If so, how do you know the listing agent didn't just get the seller to agree to a lower price, then pitch it to you as oh I got you a discount because you went direct.

For example. The listing agent offers you a 1% discount if you go direct. You agree and make an offer at the asking price. The listing agent then tells the seller that they need to lower their price by 1% in order to do a deal. Then, the listing agent calls you (of course nothing is in writing) and tells you that voila he was able to get a reduction in price because you were unrepresented. At closing, the listing agent still collects all 6%.

Do you see where this is going? There's no way for you to verify any of this as a buyer. Therefore, the only way to definitely get some of the built in commission back is through a buyer closing credit .. ie your buyer's agent giving you back some of the commission at or post closing. Which will be documented in an agreement.

Anything else is bogus. Remember that people will say anything to earn a buck, especially sly real estate agents in NYC!