BuySide Realty quietly launched in California this week under the tag line, “Where it Pays To Find Your Own Home”. The basic premise: you do the research, find the home, and determine what you want to offer while BuySide writes and manages the offer, and then guides you through the closing process should your offer be accepted. At closing, or within 14 days, the buyer receives 75% of the commission offered to the buyer’s agent (i.e. BuySide).
BuySide also offers online property search tools, free phone access to non-commissioned licensed agents (Realtors in fact), and mortgage pre-approvals (through a relationship with Chase).
Funny, just the other day we recieved the following note from a reader, “It kills me [some buyer’s agents are] getting 3% for doing nothing except meet with us once or twice and than sign their name to the contract—it’s been over almost two months since we heard from [our agent]. We did all the leg work and appointment making ourselves. It’s a complete shame that there are a few that ruin it all for the rest.” Not to worry, the days of these few are numbered. (And perhaps we should actually thank them.)
And what’s really ironic? The 25/75 commission split is actually more generous than what the majority of buy side agents would get from their own brokerage (typically split 50/50).
Interesting, but guess what — San Francisco doesn’t participate. The SF listings that appear on the BuySide site are provided by the “East Bay Regional Data MLS”, not SF — and therefore it is VERY incomplete!
Also, there are very few photos. For some reason, they’re not able to get all of the MLS data that a local agent would.
(April 6, 2006) — A growing number of real estate companies that represent buyers are offering rebates to drum up business as the housing market weakens.
Seattle-based Redfin and Chicago-based BuySide Realty Inc. have joined ZipRealty and LendingTree.com in offering rebates. Redfin will give buyers two-thirds of its commission, and BuySide will reward buyers with a check for 75 percent of what it earns from the transaction.
However, buyers must be willing to search and view properties without assistance, as these limited-service companies offer help only with making offers, negotiations, and other such aspects of the deal.
BuySide co-founder Joseph Fox says first-time and out-of-area buyers who need a lot of hand-holding or help in choosing a neighborhood with good schools might want to hire a traditional buyer’s agent.
These providers are encountering some resistance, as consumers often believe rebate offers are too good to be true. Additionally, more than a dozen states either limit or ban rebates. Even so, these discount firms expect to gain popularity as buyers look for a way to minimize mortgage payments and as lower home prices make sellers unwilling to pay a large commission.
Source: The Wall Street Journal, James R. Hagerty (04/05/06)