I found a house that im offering on just to get the lot. Realtor did not show anything and is basically just doing thr paperwork for the offer. Is 3% still normal to pay in this situation?

Im in the process of signing the realtor agrmnt, which states 3%. Seems high for not much work.

Is house listed? Possible sellers broker is paying a commission. No reason to restrict them from that if the seller is paying

If not then yes 3 percent seems high. Their time and experience is worth something but there are lots of variables in this situation we don't know so hard to give a $

Found out it was seller paying when i asked about it. Apparently its a question they get a lot with the way things are worded.

Depends on the price of the purchase to me. Is it worth $20K in commission to fill in blanks, absolutely not. If you're confident you just need the paperwork and can do everything else, go pay a RE attorney to fill out the form.

Because I'd tell them to take the commission out of the price.

m4bach said:

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Found out it was seller paying when i asked about it. Apparently its a question they get a lot with the way things are worded.

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This is one of the biggest fallacies. Regardless, if it's worded that the seller is paying the Realtor fees, it's the money provided by the buyer that's paying. Unless of course, the house is selling a loss and the seller is having to come in at closing with a check to pay off a loan balance, etc.

No different than trading in a Car that has a balance due for a new car and the dealership says oh we'll pay off your loan. Of course they will, but they'll roll it over into what you owe them.

Sure, there are a thousand scenarios and what ifs we could run through. For efficiency, I just assume that people can evaluate the changing circumstances at hand and make rational decisions. With so many unknowns it's hard to answer a specific question like that.

If the seller was dumb enough to agree to something like that, I would guess this is a lower priced property in which case commissions are minimal and I would either go with a discounted agent, negotiate a fee with an agent to represent me on this one opportunity, or let the seller make a decision on whether they need to address it with their own agent.

The only reason this is a conversation is because of the gatekeeping by real estate/government entities, not because a realtor would provide meaningful value in this scenario.

This is a genuine question. What year was the last time that sellers weren't paying the 6% commission the vast majority of the time?

tmaggie50 said:

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If the seller was dumb enough to agree to something like that……
The only reason this is a conversation is because of the gatekeeping by real estate/government entities, not because a realtor would provide meaningful value in this scenario.

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Compass has their clients convinced that marketing to LESS people will make them more money, and you think the average agent can't get a seller to sign a contract agreeing to pay 6% if the buyer doesn't bring an agent?

I agree about gatekeeping. I hate the industry model. Which is why I created the model for Red Pear Realty, which works within the industry model (as best it can) to put power back in the consumers hands.

I know how this will sound, but I'll ask anyway:

If I'm picking the lot on my own and don't need any assistance from a buying realtor, can AI not walk me step by step thru the paperwork?

I know there's true value to the local knowledge and the negotiation of pricing, etc from a realtor.

See if you think you can fill this form yourself. Off TREC website

https://www.trec.texas.gov/forms/unimproved-property-contract-0

Yep. I get it. Just saying if I have all the info I need about the property, I could plug that form into Claude and probably get pretty dang close. Realtors certainly know the nuance and have the skills

I mean, lawyers are dealing with the same quandary lately. There is still a need for lawyers. But AI is getting scary good at getting things done. Not perfect and will make mistakes tho. And you don't want to leave such investments to chance.

I asked what info it would require and if I could do this with AI and no realtor. It told me don't worry we got this lol

The nice thing about TREC contracts is they are scrubbed by professionals and do a good job of being fair to both parties. Obviously key issues, and their costs, still need to be negotiated.

But the 'legalese' is already in the documents.

Red Pear Realty said:

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And what are you going to do when their rep agreement says the sellers agent keeps the full 6% when the buyer is unrepresented?

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I would come up with an offer and then go in 3% lower and explain that the selling agent can reduce their commission to make up the difference.

OP. You do not need an attorney or a realtor. Is it wise to have one? Depends on your experience. If none then go through red pears 1.5% deal. I always work through the selling agent with very good success.

tmaggie50 said:

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Yes you can certainly do the forms yourself, especially if you have the time to do some research. There are a lot of resources online or YouTube as well. The concern I always have with AI is when you rely on it for important things that you don't know about, you don't know the nuance to catch issues.

AI is great when I know the subject matter and can identify where it got it wrong

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With much respect to lawyers and realtors, they make mistakes too. In the end, do your research and look out for yourself because humans can be greedy idiots sometimes. They can also save your bacon. Good luck!

m4bach: I was out of the country and didn't see your post until now. I'm an attorney and a RE Broker. Let me know if you still need assistance. I tell anyone who asks questions similar to yours, get a professional to assist you. I've been doing this for over 30 years. As an attorney, I can give you legal advice and craft any special/additional language for the contract if needed. Reach back out if you'd like to discuss.