"an" wrote in message
oups.com...
You would get better results posting this in misc.invest.real-estate
. The
main flaw in your logic is that the seller of the house has an
agreement
with and pays the commission to the listing agent. If you don't have
your
own agent to split the predefined fee, the listing agent keeps 100%
of the
commission.

Ah. That seems very strange to me that the listing agent gets 6%
commission if I find the house myself, but if I go through a buyers
agent my agent gets to keep 3%. Why should that be the case ? Why would
any seller sign such a contract with a listing agent which would make
buyers like myself unavailable to them. It seems only fair that I get
the 3% if I am doing all the work myself. I mean nothing MANDATES that
I have to use an agent. I am given to understand that it is in my best
interest to do so, but I also know that a lawyer is much cheaper and
more knowledeable than a real-estate agent.
The value-add of an agent for me is only in the case I dont know what I
want to buy and to help me find homes, negotiate etc., but if I can do
all that- why on earth should I go with an agent.
Really fishy.


I understand your point of view, but that is not how the real estate market
works. The real estate market is an illiquid market and is set up for
sellers to sell their houses, not for buyers to buy houses. The real estate
industry makes it look like they are helping people buy houses, but they are
in reality helping owners to sell houses. The listing agent is contracted to
work for the seller for a commission. If you are a licensed real estate
agent then you would be able to split the commission with the listing agent,
otherwise a zero. The only way to do it your way is to skip the MLS and only
deal with FSBOs.

The way things are done in real estate are not uniform from state to state
or even within a state. In Northern New Jersey almost everyone uses a
lawyer at closing, while in Southern New Jersey almost no one does. You need
to determine your local practices.

In general lawyers know more about the law and contracts than real estate
agents, but real estate agents know more about the business of selling and
buying houses. Using an experienced buyers agent could possibly save you
from making an expensive mistake. If you deal with the listing agent
directly you are putting yourself at a distinct disadavntage and not saving
any money. Only FSBOs present a money savings opportunity.

I'll recommend again that you should also post your questions in
misc.invest.real-estate for more responses. I have no connection to any part
of the real esate business.