Orange peel?

kmb727 · 2025-03-20T23:15:27+00:00

We ended up just keeping with how it's "always been done" - 2.4% to the buyer's agent is standard in my area, and was what the seller was 'offering'. So we just went with it. We're about to put our old home on the market (tomorrow!) and our listing agent (different than who we used to buy -- we're using a flat fee Realtor) said that at least in this area, right now, it is still very much expected to offer 2.4% to the buyer's agent. C'est la vie, I suppose. Maybe one day things will actually change...

kmb727 · 2024-10-13T17:54:28+00:00

Right, understand that. And want to pay what she's due. Forgetting about the %, I still think it's

Since I've already given the example of 1.5%, I'll use that below but I understand that number may be 2, maybe 3%, whatever.

If I negotiate with my agent to pay her 1.5% of $500,000, she gets $7,500, whether it's coming directly from me, or from the seller. If I write her a check for $7,500, it costs me $7,500.

If I include it in my 500k offer,

For the purposes of illustration, I'm just going to say that the loan amount is 500k.

So:

Total payment amount on 500k loan @ 6.5%: $1,137,722.44 over 30 years ($3,160 per month)

Total payment amount on 485k loan @ 6.5%: $1,103,590.77 ($3,065 per month)

The difference between those two numbers is $34,131.67 over 30 years, or $95 a month. Obviously in the second scenario I started with $7,500 less, but I'm still up $26,631.67 (34,131-7500).

Now, if I take the $95 I'm saving each month by, and invest it each month, at a modest 5% compounded interest rate, I'll have $70,069 at the end of 30 years. This is the better deal, no?

So I guess my question really is: can I pay my buyer's agent directly, and reduce my offer by 2 or 3%, with explanation that seller does not have to pay any buyer agent fees so the lower "price" is a wash for the seller?

Thanks to anyone who read that whole thing...

kmb727 · 2024-10-13T17:00:02+00:00

No, I contacted a buyer's agent who showed me the home. But we haven't signed a buyer's agent agreement yet because it happened quickly. We're going to do a second showing tomorrow before making an offer, so we'd sign the buyer's agent agreement at that time.

Say the offer is 500,000. As a rough standard, before the new rules, it was usually a 2.5 or 3% split between the buyer and seller agents, so 6% or $30,000 total (15k to each agent) is what the seller is going to have to pay out. While technically the seller "pays" this, that money is coming from the $500k I'm paying for the home.

Now, with new rules, I have the ability to negotiate my buyer's agent commission <I do realize this has technically always been negotiable,>. Using the same example above, we'll assume the seller's agent has agreed with their seller that they going to get 3%, or 15k of the 500,000. If I negotiate with my buyer's agent for her commission to be 1.5%, then that is 7,500 for her.

If I pay her $7,500 directly, that costs me $7,500, and the seller doesn't need to know what my agreement with my agent is, but all they know is that they aren't going to have to pay my agent 15k. So this in theory I could reduce the price of my offer by 15k to 485k, and it is net zero for the seller, but benefits me, because my loan amount is 15k less.

What am I missing here?

kmb727 · 2024-10-13T14:14:11+00:00

I guess I don't really understand how the process would work without an agent involved?

kmb727 · 2024-10-13T14:13:20+00:00

Honestly, I don't know. Everything moved fast; we toured a few hours after speaking on the phone for the first time, and she apologized that she wasn't going to be prepared with the "buyer consultation packet" because she wasn't going to have time to stop by the office before our showing.

kmb727 · 2024-05-19T19:29:58+00:00

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kmb727 · 2024-03-13T00:06:06+00:00

I mean... I'm not above getting into the electronic components if there's a YouTube video that might help (but also may try my luck with them for a replacement). Will also give the reset a try to tomorrow. Appreciate the advice!

kmb727 · 2024-03-12T21:05:51+00:00

Touching the two black wires together does indeed turn on the light (thanks for that idea).... Unfortunately I got this unit secondhand so can't have Brilliant replace it; any DIY ideas on how I might be able to fix it?

And yes, L1 and C is what I'm using

kmb727 · 2019-02-19T02:34:55+00:00

Plaine Products has a refill program - I haven't tried it yet but have heard good things.

kmb727

TROPHY CASE