Beware when buying without an agent

Price negotiations, defect resolution may suffer
Published on Aug 2, 2010

Cutting expenses is at the top of most people's priorities today. Many are putting off major purchases like a new car or home until they feel more secure financially. However, not all buyers are taking a wait-and-see attitude.They're casting worries about the home sale aside and are buying now to take advantage of near-record-low interest rates. In order to get a discount in price, a number of buyers attempt to buy without an agent. Let's say the sellers signed a contract agreeing to pay 6 percent of the purchase price to their broker when the sale closes. If the property is listed on the multiple listing service, the listing broker offers to pay a portion of the commission to the broker who represents the buyers.If there isn't a broker representing the buyers, the commission can -- if the listing broker agrees -- be reduced by the amount that would usually be paid to the buyers' broker. In this case, if the listing broker agreed to pay 3 percent of the purchase price to th...