Someone school me on buying land from realtor

Gone Fishin

Senior Member
If a realtor is listing land for a client how do they get paid? In FL realtors get ~6% of the sale price of a home, usually the selling and buying realtor split it.

How does it work in GA?

If a realtor is listing the land, to get the best price, should I get a realtor of my own to represent my interests or work with the listing realtor?
 

greg_n_clayton

Senior Member
What I understand, if the listing agent sales it, they get the commission. If another realtor sales their listing, then they split it. All realtors in Ga have access to other realtor's listings. I have many realtor friends. They all say, the listing agent works for the owner !! If you are looking to buy, they say you need a different agent, one that works for you !! And that makes sense to me !!
 

Possum

Banned
The buyers agent may not get you any better of a price but they could help you with the buying process and show you other properties you may be interested in. I would think you would have more negotiating power with the selling agent if you don’t have an agent wanting a cut of the commission. You could make your best offer minus 2%. The negotiation should go something like this as an example... the asking price is $300,000. You think it’s worth $250,000 so you offer $245,000. They counter offer $250,000. You then tell the agent you’ll do $250,000 but you want 2% of his commission to come off the price. (That brings it back to $245,000). If the agent doesn’t want to play, say “ok, I’ll buy for $250,000 but I’m going to bring my cousin who is a real estate agent in on it first” The selling agent stands to loose half commission, say 3%+ or $7500+. The seller doesn’t care, He’s not getting any less if there are two agents involved, but the selling agent will and he will likely hop on that deal to keep the $2500 in his pocket.
The last land deal I made the sellers agent got 10%. I got a very good deal on that land possibly because I did not have an agent and I think the sellers agent wanted to deal with me.
 

greg_n_clayton

Senior Member
I guess what I was wanting to say, is I would get my own agaent and buy through them. I can see what the possum is saying too. Either one is gona want to get as much as they can to get the most money they can...either way !! I guess having a friend in real estate would be a plus !!
 

stringmusic

To Be Determined
The buyers agent may not get you any better of a price but they could help you with the buying process and show you other properties you may be interested in. I would think you would have more negotiating power with the selling agent if you don’t have an agent wanting a cut of the commission. You could make your best offer minus 2%. The negotiation should go something like this as an example... the asking price is $300,000. You think it’s worth $250,000 so you offer $245,000. They counter offer $250,000. You then tell the agent you’ll do $250,000 but you want 2% of his commission to come off the price. (That brings it back to $245,000). If the agent doesn’t want to play, say “ok, I’ll buy for $250,000 but I’m going to bring my cousin who is a real estate agent in on it first” The selling agent stands to loose half commission, say 3%+ or $7500+. The seller doesn’t care, He’s not getting any less if there are two agents involved, but the selling agent will and he will likely hop on that deal to keep the $2500 in his pocket.
The last land deal I made the sellers agent got 10%. I got a very good deal on that land possibly because I did not have an agent and I think the sellers agent wanted to deal with me.
The listing agent can also refuse to deal with your cousin, or any other agent for that matter.

To the OP, get yourself an agent that has your best interest, and let them help you through the process.
 
If a realtor is listing land for a client how do they get paid? In FL realtors get ~6% of the sale price of a home, usually the selling and buying realtor split it.

How does it work in GA?

If a realtor is listing the land, to get the best price, should I get a realtor of my own to represent my interests or work with the listing realtor?

While existing homes typically have 6% as a "standard" (co-opped) raw land can be listed higher, many times at as much as 10%. Trying to "play" the listing agent into lowering their commission (as mentioned above) may be troublesome. A "good" agent does not verbally make negotiations to either list price or their commission. They will only present written offers which require some type of agency relationship with both seller AND buyer and working with the buyer in such cases will require the SELLER to agree to a change in "agency" with their agent.

I have worked "both sides" of many real estate transactions and never cut commission on any that I recall. I'd recommend finding a trusted agent to use strictly as a "Buyer's" agent and get advice on how to make an offer and also ask them for a comprehensive "comp" for the property showing it's ultimate value with recent comparables. A good buyer's agent will not have any trouble doing that and will be able to advise you on perc tests, getting a survey and how to write the offer protecting the buyer if the property is not as advertised (surveys as less than listed size)
 

Possum

Banned
The listing agent can also refuse to deal with your cousin, or any other agent for that matter.

To the OP, get yourself an agent that has your best interest, and let them help you through the process.

Wouldn’t that be unethical for the sellers agent to not take an offer to his client because the agent didn’t want to loose the full commission?
But I do agree that a buyers agent is a good idea in a lot of cases. Especially if the buyer is from out of town and wants to view other properties. I was just referring to how he could get the best deal for himself.
 
Wouldn’t that be unethical for the sellers agent to not take an offer to his client because the agent didn’t want to loose the full commission?
But I do agree that a buyers agent is a good idea in a lot of cases. Especially if the buyer is from out of town and wants to view other properties. I was just referring to how he could get the best deal for himself.

I agree with you. For the most part, any listing agent is required to present all written offers to their sellers, even if the property was "pending" (at least in most cases). There could be circumstances where they would not be required, such as if the seller had said in writing, when listing, prior to the offer that they would not deal with "XYZ" realty or "Mr D" as a specific realtor.

And, your premise about the lowering of commission to get a deal struck is possible, but many realtors will not negotiate that as that rate is contracted between the seller and the listing agency and then paid directly to that agency or co-opped to another agency at closing.
 

Possum

Banned
But everyone knows that everything is negotiable. That includes commissions. So although not all agents will do that deal, some will.
Buying land like buying a house, car or any other large deals needs to be a negotiation unless the buyer wants to pay full price. And sometimes negotiations can be ugly. But I enjoy it and have made many very profitable deals over the years.
 
But everyone knows that everything is negotiable. That includes commissions. So although not all agents will do that deal, some will.
Buying land like buying a house, car or any other large deals needs to be a negotiation unless the buyer wants to pay full price. And sometimes negotiations can be ugly. But I enjoy it and have made many very profitable deals over the years.

My only further comment would be that the commission charged is between the seller and the listing company and set by written contract. And, not all written contracts can be re-negotiated. Semantics? Perhaps, but it can be a very slippery slope to contend with.
 

JackSprat

Senior Member
I agree with you. For the most part, any listing agent is required to present all written offers to their sellers, even if the property was "pending" (at least in most cases). There could be circumstances where they would not be required, such as if the seller had said in writing, when listing, prior to the offer that they would not deal with "XYZ" realty or "Mr D" as a specific realtor.

And, your premise about the lowering of commission to get a deal struck is possible, but many realtors will not negotiate that as that rate is contracted between the seller and the listing agency and then paid directly to that agency or co-opped to another agency at closing.


We solmy mother's house, and the our incompetent so called seller's agent approached us about cutting his own commission to get the deal done. He still made about $6000 dollars for less than 2 hours work. Didn't even put a sign up.

That said, most agents around here will refuse to cut commissions for the buyer. Their attitude (and I don't blame them) is that the commission is none of the buyer's business.
 

westcobbdog

Senior Member
If a realtor is listing land for a client how do they get paid? In FL realtors get ~6% of the sale price of a home, usually the selling and buying realtor split it.

How does it work in GA?

If a realtor is listing the land, to get the best price, should I get a realtor of my own to represent my interests or work with the listing realtor?

As a 24 year Realtor I can give you some info. The listing agent reps the seller and typically offers a co op commission to the selling broker, that’s the agent that works for you and reps your interest. This agent is free to you. A few things this agent can help you with include identifying suitable properties, researching comps including asking listing agent “ how did you get your asking price “ and overall this agent would guide you thru the deal, writing in a long enough free look period / due diligence period where you check things like recent solds, soils, timber, survey, surrounding neighbors, nearest neighborhood, landfill, airport, etc..
to see if property will work for you.
This agent would also know to add both financing and appraisal contingency periods, in addition to your free look period.
Hope this helps and best of luck.
 

westcobbdog

Senior Member
My only further comment would be that the commission charged is between the seller and the listing company and set by written contract. And, not all written contracts can be re-negotiated. Semantics? Perhaps, but it can be a very slippery slope to contend with.

Exactly, commission offered by listing agent is thru his agreement with the seller and not the buyers business or interest. I have never had a buyer ask me for any of my commission, and if it happened they would be on their own. When they come to your house to perform plumbing or roof or hvac work are you asking them for a cut. No.
I have repped maybe a few hundred buyers, maybe more.
 

Gone Fishin

Senior Member
Exactly, commission offered by listing agent is thru his agreement with the seller and not the buyers business or interest. I have never had a buyer ask me for any of my commission, and if it happened they would be on their own. When they come to your house to perform plumbing or roof or hvac work are you asking them for a cut. No.
I have repped maybe a few hundred buyers, maybe more.

In FL, the selling and buying realtor split the commission. In GA is the buyer expected to PAY the realtor?
 

GoldDot40

Senior Member
In FL, the selling and buying realtor split the commission. In GA is the buyer expected to PAY the realtor?

The seller is the one who typically pays the realtor fees. Of course, you come to agreements when the contract is drawn up and everybody needs be on board with it BEFORE it is signed. You do all negotiations during the origination of the contract of who pays what.
 

muzzy17is

Senior Member
If a realtor is listing land for a client how do they get paid? In FL realtors get ~6% of the sale price of a home, usually the selling and buying realtor split it.

How does it work in GA?

If a realtor is listing the land, to get the best price, should I get a realtor of my own to represent my interests or work with the listing realtor?


If you're not looking in a general area for land I would just make appointments with the listing realtors to view the land they have . Chances are they'll know of a few other pieces as well. If you are looking in a particular area or couple of countys I'd find a realtor you feel comfortable talking to and built a relationship with that person. They will keep you posted and may know of stuff that is not listed per say but is for sale.

As far as getting the best deal that all comes down to your ability to know if you're getting a good deal, and whether or not the realtor is a good negotiator. That will come with feeling them out when you first talk to them. Althought at the end of the day the seller always gets the best deal cause it's their property and they're gonna get their price.
 
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