Expert: Dick Dennis - 4/27/2005

Question
I'm in the market to purchase real estate. The way I understand is that once I make the purchase, the seller will pay a 6% fee(for example) 3% for the seller's broker and 3% for the buyer's broker. Every Sunday I browse open houses by myself without a broker. I do not want a agent pressuring me into any purchases since they only get paid when I make the decision to buy. If I find a property I like to make an offer can I use the 3% fee (buyer's broker) as part of the negotiation? Since I am doing all the work I think it's only fair that the 3% be used to lower the asking price. Can this be done? It's obvious the seller's broker would do whatever he/she could to take the entire 6%. Thanks.

Answer
As you no doubt know, Hank, if you are not a licensed real estate agent, you may not legally collect a fee for the sale or purchase of any real estate.

However, there is nothing stopping you from making any kind of offer you choose to make. Three percent reduction, 10 percent, twenty percent. It's up to you. But who is going to make the offer for you? If the property is listed with a broker, they are not going to let you make that offer. They will allow you to make that offer THROUGH the listing broker, however. Any offer you make MUST be presented by the broker to the seller regardless of how low the offer may be.

The broker could lose his license if he refuses. But, of course, nothing says he has to do it to your liking. If you want to accompany the broker in the presentation to the seller, I suppose that might be allowable. But, I have yet to see it happen in my 35 years in the business.

You might be surprised that many offers were accepted despite the low offer when the broker has done the work to get it accepted WITHOUT the buyer looking over his/her shoulder. Just find yourself a broker with whom you will be satisfied working and then have him/her present your offer on any of the houses or condos that you like.

I do wish you well.

Dick Dennis          dixiedee13@aol.com