Not sure what to do, opinions please

Discussion in 'The Okie Corral' started by RCP, Jan 17, 2010.

  1. RCP

    RCP

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    So I've been pre-approved and am searching for a house (1st time homebuyer). Anyhows, never having done this before I get on the internet and see a couple interesting houses and click on the schedule a viewing deal and get a call from a real estate agent who schedules to show me the house the same day, cool! So I go look at the houses and the real estate agent ask me if I have a agent yet and I tell him no (because I did not) and he then ask me if I would use him, yadi, yada, yada and I said sure.

    Heres the tough part, my wife gets to talking to my brother-in-law who flips houses for a living and has a real estate license. He tells her that if we let him put in the offers for us that he will just give us his commission which basically amounts from anywhere from 5-7k depending on what we buy!

    I feel bad telling the real estate agent who showed us the houses yesterday, sorry we are using someone else now. But I don't think I can afford to pass up that money which would pay for some immediate home improvements.

    What would y'all do?:dunno:
     
  2. Myke_Hart

    Myke_Hart Handloader

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    Tell him you are no longer interested in buying a house and he will go away. Unless you signed something with him you have no obligation.:embarassed:
     

  3. RCP

    RCP

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    Nope didn't sign anything, just a handshake and I guess thats whats getting me is where I come from a handshake is usually just as good.
     
  4. FullClip

    FullClip NRA Benefactor CLM

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    If your brother-in-law will refund the agent commission (and if you can trust him), I'd go for it. It's a good chunk of change.

    Lots of luck with the house pruchase. Take your time looking around and make sure you get what you want that's within your budget.
     
  5. paynter2

    paynter2 It ain't over Millennium Member

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    Since you told the realtor that you would use him as your agent, I think you should just be upfront and honest with him. If he can't understand the fact that you'll save $5-7K on the deal, then that's his problem.

    man up and just be honest.
     
  6. scpd92

    scpd92

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    There are a bunch of ways in which this "contract" can be voided all of which are too fact specific. I don't know crap abou TX contract law, but in NY you have a 72 hr. right of recision on ANY contract. Assuming TX law is similar to NY (I have no way of knowing) send the RE agent a certified letter that you were unaware of what him "representing you" means and you are revoking your acceptance of his offer to be your buyers agent. Point out that since virtually no money/time as a "buyers agent" has been expended you consider your business relationship with him as terminated.


    TX attorneys please weigh in here.
     
  7. certifiedfunds

    certifiedfunds Cosmopolitan Bias

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    Be a man of your word.

    Don't sell your honor for $7K.
     
  8. RCP

    RCP

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    There is no formal contract, and no offers on homes have been made yet. Simply had him show me couple houses last night.
     
  9. certifiedfunds

    certifiedfunds Cosmopolitan Bias

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    Do you like to work for free?
     
  10. RCP

    RCP

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    Nope, I also don't make 7k for taking 30minutes to unlock a house so someone can look inside it. :supergrin:

    The other thing that bothered me is I asked the guy what a reasonable offer would be on the house and he told me nothing less than the asking price as it was already under the market value.

    My brother-in-law looked up the same house last night and told me it was a foreclosure that had been on the market over 4 months and I should start off by offering at least 10-15k less than asking price.:dunno:

    I guess I feel like my BIL has our best interests at heart and the agent last night is naturally going to want to sell it for as much as he can so that he can make a higher commission off us.
     
  11. RenoF250

    RenoF250

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    Real estate agents are sales people and salespeople end up working for free a lot, it is part of the job. You can change agents whenever you like.

    That said will your BIL spend a bunch of time finding you houses and making appointments for you to look at them? Will he help with escrow etc? Most agents will bargain on their rate. Typical split is 3% for sellers agent and 3% for buyers agent. You can usually get them down to 2% and agree they get 4% total if you buy a house they are the agent for. I had a house listed and found my own buyer so the agent gave me 3% back after close.

    A good agent is worth the money though, they know the areas, what to look for in the house, and often get to see listings early that may not last the day. I would let the agent know that your BIL has a license and you will use him for house you find and look at but if they find you something and you buy it you will use them. Best of both worlds. A good agent won't have a problem with that.
     
  12. certifiedfunds

    certifiedfunds Cosmopolitan Bias

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    See, there is additional info. If the guy is acting as the buyers agent, it sounds like he is not doing a good job or representing your interests. In that case I'd have no problem cutting him loose.

    But to just cut him loose after he has done part of the work, because you can save money, is dishonorable, IMO.
     
  13. certifiedfunds

    certifiedfunds Cosmopolitan Bias

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    I'm a retired, recovering sales person, sales trainer and sales manager. Thanks.
     
  14. RenoF250

    RenoF250

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    This leads me to believe the agent is not very good in the first place/wants higher commission. There is never a problem offering less unless it is a sellers market and you really want the house. Then if you go too low they could get irritated and ignore your offers.


    I had an agent come talk to me about selling my house and he told me how many he sells each month and what a great agent he is. Says I should list my house for 148k. That seemed way too low to me so I called another and we ended up listing for and getting 168k no problem. He just wanted to list, sell, and move on.
     
  15. RCP

    RCP

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    Thanks for the opinions I'm just gonna be honest with the guy cut him loose and go with my BIL. Nothing personal, just business.
     
  16. RenoF250

    RenoF250

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    I would recommend getting a home inspection. I am pretty good at looking over houses and I knew everything that was wrong with this one but when a home inspector documents it it makes a big difference. In my case he said the roof needed to be replaced so I got $4k for a new roof.
     
  17. RCP

    RCP

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    Definitely will do
     
  18. LongGoneDays

    LongGoneDays Misanthropical

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    Before you buy the house, spend the night parked in front of it.
    Rent a van and get an air mattress if you have to.


    Some people have no idea of the noise level difference between night and day. Don't get stuck around a bunch of loud asses like I did lol.
     
  19. zoyter2

    zoyter2 Yeah, so what?

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    The agent is NOT working for free. If it is like my area, THE AGENT WORKS FOR THE SELLER. They will pay the agent eventually.

    It is ridiculous to think that every prospective buyer will "pay" someone else's employee.

    I don't know TX laws, but again, in my area, the agent DOES NOT WORK FOR THE BUYER IN ANY WAY. The agent works only for the seller. Therefore, in my area, if you offer the seller $19 and a pack of gum for a $100k house, by law they HAVE to present the offer to "THEIR" employer. They sure as hell ain't gonna help you "lowball" their employer.

    You owe this realitor SQUAT. Make sure you pay what you owe. Since "squat" is "nothing", double it as a tip and walk off. :supergrin:

    RenoF250 has one hell of a tip. Do this when you find the house you want.
     
  20. certifiedfunds

    certifiedfunds Cosmopolitan Bias

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    In my area we have buyer's agents and seller's agents. A seller's agent lists the property. I am free to use any agent of my choosing to represent my interests in the transaction, show me the house, advise me along the way. At the time of sale, the commission is split between two agents and their respective agencies.

    The way the OP presented it originally, the agent did his job. The OP wanted to cut him loose after that and write an offer thru his BIL purely to save the commission. I stand by my opinion that this is dishonorable behavior as originally presented and is part of what is wrong with the fabric of this nation.

    Later in the thread the OP adds more information to indicate that the agent is not doing a very good job and not looking after his interests. Based on that, I agree that he should fire him and use his BIL.