Real estate question...

[Jetheels]

I’m hoping to buy a house one of these days. First time.
Is it normal practice for the broker to charge (300$) for making an offer?
Everything I read is that brokers only get paid a commission when the house is bought.
This is one of a few incidences that have cropped up where I’m questioning whether or not I’m with the right broker.
Also, unanswered emails about houses I was interested in; their phone battery dying on video tours, sending me listings everyday that are not even close to what we have discussed as what I’m interested in, etc.
Mostly wanted to know about the offer charge.
I hope this is the correct forum, or if this issue is even allowed on here.
Thanks for any input you might have.

[MissB]

1. I've not bought many houses but I've offered on quite a few

And we’ve never paid the broker to make the offer.

We have put up earnest money though.

Your broker seems sketch.

[Jetheels]

2. Thanks......I'm starting to wonder.

I was thinking 3 strikes your out and I just did a count, they’re up to 6 or 7 questionable incidents.
I read about the earnest money and also about the due diligence, but never about making an offer charge. Yeah, seems sketchy.

[MissB]

5. I'm pretty forgiving

But really they work for you, and they should have enough professionalism to not make a series of questionable choices or blunders.

A good realtor is worth their weight in gold. If you find a good one, keep their name handy. Word of mouth is a good way to find a good realtor.

[Jetheels]

8. As a first time buyer it's not always discernible as to what is normal in this arena.

It’s just now after a string of missteps and questionable practices that I’m starting to scratch my head about their professionalism. Thanks.

[FuzzyRabbit]

3. Fire your agent.

He is unprofessional and probably a crook.

[Jetheels]

7. Ok but I never "hired" them.

Last edited Sat Apr 3, 2021, 01:35 AM - Edit history (1)

I never signed anything that says I’m only working with them.
But yeah, I think I’m moving on to find someone else.

[DanieRains]

4. I Am A Real Estate Investor Bought And Sold Lots

Find an agent your friends have used and liked.

Get a referral from an agent is best.

They know who is best suited to your needs.

Where did you get this clown?

[Jetheels]

6. They were referred to me by a friend who lives in the area where I'm looking.

Oh geeez, I’m glad I thought to post this question. Already my concerns are confirmed by you guys. But really, did they not think I would check on if that’s normal to charge for making an offer?
Eeeeesh.

[Bayard]

9. Run away

Very fast.

[Jetheels]

10. Seems to be the consensus here, thanks.

[yonder]

11. Sounds weird to me. Could they be picking up on first time buyers vibes?

And then try to insert as much BS as they can?

[Jetheels]

13. Possibly. Maybe my navet is bringing out their bs factor, who knows.

I think I best move on.

[UTUSN]

12. My totally dweeb (lack of) experience, both buying and selling.

Knew nothing, first time buyer. Signed a contract, was thoroughly indoctrinated that if I found something on my own I *had* to pass the deal through the real estate agent. So the agent and her partner picked me up during my lunch hours for months showing me dead end things. Then eventually, my serendipity driving on a quiet street there was a for-sale-by-owner and I dutifully passed the deal to the agent, fine.

So years later having ended up with a property and not knowing how to do the by-owner thing, I signed a contract for six months and the inform-agent thing was in the contract, or at least indoctrinated in me. Five months passed with the agent showing it a few times with zero results, then a friend of a friend approached me and I guess I could have waited a month and let the contract run out but I passed it through the agent and he charged $4K.

I don't even know whether this fits the O.P.'s topic. Have an endless supply of my dumbassery!1

[Jetheels]

14. Luckily I didn't sign anything so I'm free to find someone else.

I’ll only be stuck with some guilt for waisting their time.
From what I know, I don’t think it mattered that you found your house on your own, and also found a buyer for your house on your own, because you still needed the agent to do all the paperwork stuff. Maybe they didn’t do the finding but they did other stuff. So you did good.

[UTUSN]

15. Well, thanks, & I did good in my own world. I didn't mind the first agents because I just wanted

my little shack and didn't know anything and they were friendly and I don't even know or care how much I paid them. The second dude was a hard scrabble type, no rapport, and as for the paperwork, when I told him about the buyer he didn't even seem like he was going to do any paperwork, sort of acted like he expected me to go my own way even inside the six months, and was a little like, oh-well when I told him to do the paperwork. Anyway, my conscience and not looking over my shoulder are worth something to me.

Do NOT take this as "advice," but I think that by-owner things can be done with simple papers?

And I say to you, totally forget the "guilt" in your case, none to be had, bottom line no legal obligation.

[padfun]

18. I was a RE agent years ago

And you don't need an agent if you are selling. You just need to go to a Title company and work with them. RE agents for the seller are best when you have a hard property to sell and they can list it and show it.

As an agent, my job was to list it, show it, and once an offer came in that was accepted, give it to the Title company to take over.

FISBO's (For Sale by Owner) sell all the time and they just work with a Title company. It saves you about 10K and it is how I've sold my houses since being an agent.

[Hekate]

16. Tell your agent this is not working out for you & that you are finding someone else...

Sorry, they sound incompetent.

Then do a little interviewing of different agencies. Read Yelp reviews, too.

You can read real estate ads online and do some visits to open houses on your own to get an idea of what’s available. That will also put you in touch with agents and allow you to chat with them if it’s not too busy. Don’t commit to a relationship immediately — just take their card and make some notes on the back of the flyers about the houses you are visiting.

Also, since this is your first time, you might visit a bank and talk to a loan officer about how much you qualify to borrow for a mortgage. This conversation will be absolutely free, as you are not filling out any paper, just making an inquiry based on your income, savings, and debt. It’s educational and will help guide your search.

Best of luck. I’m sure someone has already chimed in about the charge for making an offer.

[Jetheels]

17. I suppose I should say something to this agent. I don't really want to confront them though.

I imagine they will make up excuses and I’ll go along.

I’ll look up Yelp reviews like you suggest. And ask friends if they can recommend other agents. I think the next house that comes up on the real estate website I use that I will not bother mentioning it to my current agent. I’ll just try to contact the seller for the floor plans and other info not listed on the websites. Although they don’t always get back to me either. Maybe the seller can recommend a buyer agent. I don’t know if it’s my agent that is the problem, or if it is just the wrong fit, or if it is the fact that we’re in a sellers market where houses go under contract often within 2 to 3 days of hitting the market. So us buyers are a dime a dozen.

Thanks.

[padfun]

19. Run away and fast

They should never charge for an offer and that could get them in trouble with the local RE association.

And they sound incompetent.

[Jetheels]

20. Thanks for this info.

Since not finding any such thing on Google about agents charging for making an offer, I’m glad I thought of asking at DU. What a good resource of information and support.

[Sedona]

21. From a veteran RE agent licensed in three states...

No fees for writing offers, never!

It IS a crazy seller's market now due to Covid. Only half the houses for sale in most major markets than a year ago.

PM me and I can interview agents in your area for you to find someone competent.

See link for info on current market. (No paywall for covid related stories)

https://www.nytimes.com/2021/02/26/upshot/where-have-all-the-houses-gone.html

[Scrivener7]

23. Wow. That is a really nice offer. Glad you're making it. The poster seems to have found

a crook.

[Jetheels]

24. Thanks Sedona. I think I've entered the "I've been duped" mode.

I glanced at that article but will read through it more carefully.
Prices have skyrocketed since I began searching 2 years ago. In some of the neighborhoods I have been looking 250k would get you a cute 1920’s cottage with new kitchen, bath etc. Two years on, houses with that price tag in that same area are often tear downs or “as is”.

Sorta unrelated to my original post but, I’m also concerned how working from home is going to effect jobs in the future. I can’t recall where I read it but it was about how employers are most likely going to begin outsourcing white collar jobs, since, if people are not working in the office they might as well be working from India, or wherever, where they can be paid a fraction of the pay that they get paid here. I know this already is occurring but it could get more common if working from home becomes the norm.
Who knows what further changes are around the corner because of Covid-19.

[mnhtnbb]

26. What a nice thing to do!

Years ago I was licensed in California.

I've since bought/sold property in three other states. Agents will NEVER charge to write an offer. Find another agent.

The market is crazy right now. Many properties have multiple offers on them. It is imperative that the OP get a pre-qualification letter from a lender to attach to an offer. It doesn't compel one to go with that lender, but if you're competing with other offers, you want your offer to be as strong as possible. It will also let you know the max price you can afford and not get you into a situation where you get your hopes set on a house that is out of your price range because you get carried away with competing for a house.

Interest rates have been rising--slightly--for a couple of months and may go higher. Find out the cost of locking your loan rate when you shop for lenders.

Good luck!

[Scrivener7]

22. Absolutely not normal. It's a con. Your broker is paid by the seller.

[Jetheels]

25. Well, they conned themselves out of a potential sale.

[Scrivener7]

27. Good! Good luck with your search. It's so exciting. Don't let this sour it for you.

[Jetheels]

28. Thanks! Onward.

[Scrivener7]

29. Let us know when you have your new home.