🚀 go-pugleaf

Technically that might be true (I don't know all the specifics of who the 
agent represents if there is no contract with the buyer but I think you are 
right).  However, I believe that all agents will make you sign a contract 
of representation (even if it's just for that 1 specific property) before 
they present an offer for you so it's irrelevant (i.e. they won't present 
the offer before you sign a contract).  The only exception to this would be 
if you are dealing directly with the listing agent since they are already 
committed to getting the best deal for their vendor (obviously they'll try 
to make the deal happen with both sides happy but they will probably favour 
the vendor (e.g. if the place is listed at $175K but they know the vendor 
will take $172K and they know that you'll pay up to $174K but make a first 
offer at $170K, they'll probably advise the vendor that they think you'll 
go up to $174K and that they should probably try to get that instead of the 
$172K that they would have accepted anyway and they likely won't tell you 
that the vendor will go as low as $172K).


In any case, my initial point was just that whether you have buyer's agent 
or not, the commission is still paid by the vendor on the sale price 
(although I guess you could say that indirectly it's paid by the buyer 
since they are the ones paying the money for the home that ultimately pays 
the commission).  The only exception to this would be if you sign a buyer's 
agent contract AND you do not remove the clauses that say that the buyer 
has to pay X amount to the agent if he buys a property during the duration 
of the contract without going through the agent (i.e. buys property with 
other agent, buys FSBO (for sale by owner) privately, buys new home from 
builder, etc) AND the buyer's agent actually makes you adhere to the clause 
and requests the money.  In practice, I think most agents have no problem 
removing those clauses (although I think they do appear on the standard 
contract)  and even if you don't remove it, I think it's very rare that 
they enforce them (unless they really feel that you cheated them (e.g. they 
find a home for you, take you to visit, determine a fair price for you, and 
then you go behind their back and purchase the home directly from the 
vendor or another agent (and even then I think most would just let it go)).



cx172@FreeNet.Carleton.CA (Elat Lerner) wrote in
<9stoco$a79$1@freenet9.carleton.ca>: 

>If you are a buyer and you are working with an agent, unless you 
>specifically sign a contract with that agent, the agent is working
>for the seller.
>
>Mike (anon@xnews.com) writes:
>> Actually that's a bit misleading, whether you have a "buyer's agent"
>> or not, the commission is still paid on the sale price of the house by
>> the vendor.  (i.e. if your "buyer's agent" sends you a bill, contact
>> your lawyer)  That being said, you are correct and it's certainly in
>> any buyer's interest to have a "buyer agent".  
>> 
>> As you stated, the listing agent works for the vendor and if you use
>> them to purchase a home, they are suppose to get the best possible
>> deal (i.e. the highest price) for their vendor and they will receive
>> both halves of the commission (usually 5%).  If you use a buyer's
>> agent, they will try to negotiate with the listing agent to get you
>> the lowest possible price and the commission (still paid by the
>> vendor) will be split between the two agents (usually 2.5% each).
>> 
>> FYI, this is the same for buying a new home from a builder and it is 
>> usually in your advantage to use a buyer's agent to negotiate a deal
>> when buying a newly build home.  However not all (but most) builders
>> will cooperate with buyer agents so sometimes you don't have that
>> option. 
>> 
>> More 2cents,
>> Mike.
>> 
>> 
>> 
>> cx172@FreeNet.Carleton.CA (Elat Lerner) wrote in
>> <9ssjpk$j6g$1@freenet9.carleton.ca>: 
>> 
>>>Vijay Aggarwal (vijay.aggarwal@home.com) writes:
>>>> u donot pay comm.when u  buy the house, seller pay to agent for
>>>> selling the house.
>>>
>>>Not necessarily.
>>>
>>>If the seller(vendor) pays then all agents involved work for the 
>>>vendor. So if you are the buyer, and you have an agent show you
>>>properties, get you to make an offer, etc., that agent is really
>>>working for the vendor. It is his job to get the vendor the best 
>>>price possible.
>>>
>>>OTOH if you pay the commission to your agent as a buyer, then
>>>the agent will be looking after your best interest. Trying to get
>>>you the best deal for the least amount of money. 
>>>
>>>Since you are paying commission anyway (if you are the buyer it
>>>is built into the price), you may as well pay it directly and
>>>benefit from working with an agent that is working for you.
>>>
>> ...
>>>
>>>--
>>>Donate blood
>>>http://www.bloodservices.ca/Ontario/Ottawa/index.html
>> 
>
>--
>Donate blood
>http://www.bloodservices.ca/Ontario/Ottawa/index.html
>