seller pays that. isnt it like 6% of the sale price right now?

 

It depends but the standard is 6% unless it is commercial real estate. However, the agent will pay for advertising expenses which depending upon the strategy used can get costly.

Best piece of advice I can give to you is decide on your budget after speaking with a mortgage person so you know what you can afford. Decide what you want in a house, and shop based upon those two factors (that way you don't have your heart broken later in the process). Then when you find the house make sure you have a home inspection. If you can work it in the deal get the seller to pay for a home warranty, if they don't spend the money yourself, it could be a great investment.

 

I got a house in Va beach if anyone is interested, its in the Other for sale thread

 

trade you for a tuna can.

 

it keeps the house from being marked up 6% to cover realtor fees is what I'm saying. I was able to do all of the negotiating myself with no middle person and it's also been a big time saver.

 

Marked up six percent? Most people get the most they can when selling something. People can't expect to sell for too much more than the property will appraise for because the banks won't lend more than the appraisal and the buyer would have to pay out of pocket for it.

 

well, I should have said it left 6% more room for negotiating being that a realtor wasnt used. and thats what happened, and it worked for me, and i bought a house for under appraisal.

 

what's the incentive to the seller to not go through an agency if he's willing to negotiate the 6%?

I'd rather go through a reputable realtor, and i'm even going to do so when i rent my house out next spring.

 

to deal directly with the buyers, no middleman to negotiate, direct contact for meeting and viewing times, doesnt have to leave the house when prospects come through. Seller can get original price he wanted for the house not having to cut an extra 6% down for paying the realtor. Knowing the 6% is there to negotiate in the sale of the house keeps him from having to cut 6% out of the final sales price for the realtor comission.

maybe my situation was perfect, but we got the house for what we wanted, the seller sold for what he wanted

 

Good deal, it can allow for a little extra negotiating room; that doesn't mean that all people are willing to pass that savings onto you. Also there are other expenses that need to be looked at during a FSBO, such as lawyers etc, things that are included when using a Realtor. Bottom line, I am not saying to go one way or the other, just beware and use caution when buying.

I bought my house for 50k under appraisal using my wife, so you can get deals through agents as well.