Wed, 16 Mar 2022
In response to https://twitter.com/faraz_r_khan/status/1452057985501437952
I think buyers without agents are pretty rare. In Portland, a listing agent
refused to present my initial offer to the seller, despite a legal obligation
to do so, because it wasn't on the customary form created by the local Realtor
association. I ended up buying a license for the forms, plus a license for
the software to complete the forms. I resubmitted the offer, and the rest of
the closing process went smoothly. The seller's agent had to a little extra
work that a buyer's agent might typically do, being present for the inspection
and appraisal. The sale price was about 9% below the asking price. I don't
know if the listing agent reduced his commission, about $13k that was saved by
not paying a buyer's agent commission.
I made an offer on another property without a buyer's agent, contingent on me
being able to see it, and the listing agent refused to schedule time to show me
the property. That one received multiple offers above asking so she didn't
feel obliged to deal with an unusual situation, I guess.
The second property I bought without a buyer's agent was in Chicago. The
seller was a real estate agent. He was fine using the purchase agreement form
created by an Illinois lawywers association, which is publicly available. I
believe the Chicago Realtors association has their own forms as well that
aren't available to non-Realtors/lawyers. In Chicago, buyers and sellers
typically use lawyers in addition to real estate agents, but close through
escrow at a title company. I didn't bother hiring a lawyer for this
transaction. (The lawyer we used on the purchase of our primary residence was
about $800.)
I haven't sold a property without an agent, but if you have time to do
showings/open houses, I don't see any reason not to. The buyer will likely
have an agent, and the agent will probably expect the customary commission from
you. I know someone who came to an agreement with a buyer's agent for a 1%
commission.
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