What are the Pros and cons of hiring realtors when buying a house?
Posted on February 22nd, 2010 by admin
I realize sellers pay commision, but using a realtor they’re truly always working for the seller, not for me..they have no motivation to get me the lowest price since they get half of the commission..even a buyer agent..if looking at a home being sold by the agents realty company…their loyalty goes to the seller…I can look for homes online and hire a lawyer to help write an offer…do I really need a realtor?
That is absolutely incorrect. A buyers agent must always put his clients interests above all others, including his commission. That is in the Code of Ethics that all Realtors must follow. Their motivation comes from the fact that if they have a happy client, that client will refer him/her to other people, not to mention the next time they need a Realtor, they will think of him/her first.
Not all homes listed for sale are online, so without a Realtor, you may be missing out on you dream home. Plus, by the time you notice it, it may be sold. A buyers agent should be able to notify you as soon as a home that meets your criteria comes on the market.
Sure, you can hire an attorney for the legal aspects, but they are not going to be able to tell you if you are over-paying for the home. A Realtor will be able to advise you on current market conditions, and comparable home sales. Remember, its your choice on what you want to offer for a home.
It sounds like you’ve had a bad experience with a Realtor. You may want to shop around if you feel that you are not getting the service you deserve. There are alot of good and ethical agents out there.
February 22nd, 2010 at 3:23 pm
when I bought my house I told the realtor that she was in reality working for me since I was going to pay her for the sale, after that she was in my favor.
References :
February 22nd, 2010 at 4:06 pm
Well you don’t really need a realtor if you know what you want and where to get it, the forms are not that complicated. But you should be a to find a good, honest hard working real estate agent somewhere in your city. Good agents understand its not about taking you for every penny, but providing good service over a longer period of time. If you find a good realtor, chances are you not going to look for another one next time you buy a house. Secondly if you realtor does a good job, your going to tell all your friends and family that you have an honest agent. Like ive said before, dont forget that this market is oversaturated with agents that don’t know anything. 90% of the agents control 10% of the business, while the other 10% of the agents, control 90% of the business. Now why do you think that is? Becuase they screwed all there clients, or because the continually provide great service.
References :
February 22nd, 2010 at 4:34 pm
I think this really comes down to time. The realtors will help you find houses that match your needs, and they probably already have inspectors and mortgage companies they work with. If you have time to search the web, read classifieds, and drive around on your own to find houses, then you can work on your own.
Also, a realtor can write bids for you – if you’re on your own, you’ll have to find a lawyer.
We bought a house from the old owner without any realtors involved last year, and it worked well for us. Good luck!
Beth
References :
February 22nd, 2010 at 5:20 pm
Pros:
Wider access to house listings that are on the market.
They have connections for financing and all other associated paperwork needs.
Having a realtor on your side is good because they know the ropes and tricks of the trade.
Cons:
You pay for it with the commission.
If you hire a realtor, maybe they and the selling realtor can come to an agreement on the commision. In some instances, if the hosue has been on the market long enough, the seller is willing to pay both.
References :
February 22nd, 2010 at 5:49 pm
That is absolutely incorrect. A buyers agent must always put his clients interests above all others, including his commission. That is in the Code of Ethics that all Realtors must follow. Their motivation comes from the fact that if they have a happy client, that client will refer him/her to other people, not to mention the next time they need a Realtor, they will think of him/her first.
Not all homes listed for sale are online, so without a Realtor, you may be missing out on you dream home. Plus, by the time you notice it, it may be sold. A buyers agent should be able to notify you as soon as a home that meets your criteria comes on the market.
Sure, you can hire an attorney for the legal aspects, but they are not going to be able to tell you if you are over-paying for the home. A Realtor will be able to advise you on current market conditions, and comparable home sales. Remember, its your choice on what you want to offer for a home.
It sounds like you’ve had a bad experience with a Realtor. You may want to shop around if you feel that you are not getting the service you deserve. There are alot of good and ethical agents out there.
References :
February 22nd, 2010 at 6:35 pm
I used to be an average Joe who bought a few houses and I came under the same impression. As a licensed real estate broker (who actually cares about the people I represent rather than the profits) I suggest you ask your real estate agent a few questions to see who’s side they really are on:
1. Based on your experience and knowledge, how do you justify making an offer of x dollars on this property? Do you have any recent comps? How would you feel if I made an offer 20% below what you suggest? If the agent doesn’t feel comfortable or gets defensive, get a new agent.
2. What contingencies or protection will you provide for me so that I get my deposite back if I fail to qualify for my expected financing, if the property doesn’t appraise for my oferring price and if there is anything that makes me feel uncomfortable with continueing with this purchase? They should protect you on all points, if they say they can’t, get a new agent.
3. How would feel if I had the seller pay for all closing cost? If they say that they won’t submit the offer or if they say it’s standard for the buyer to pay for something, get a new agent.
I know a lot of agents/brokers will disagree with me about the above statements, but a buyer’s agent should work for his/her principal and not the seller’s. When I represent the buyer, I look out for and negotiate in his/her favor even if the though the deal might fall through and I would lose my commission.
By the way, I suggest you get a buyer’s agent if you ever come across someone like me as a seller’s agent.
Regards
References :
Licensed Real Estate Broker and Investor
February 22nd, 2010 at 7:24 pm
I am an agent and when helping someone find a home I have to admit I am amazing at it. I love to get them a great deal. If you have a buyer broker agreement then your agent should only be working for you. You also should have to agree in writting if it is going to be dual agency (agent or agents broker represents both buyer and seller) Personally I hate representing both it is hard if not impossible to be impartial and highly recommend staying away from Dual agency.
Agents are truly NOT employeed by the seller. The seller employs the listing agent and the listing agent agrees to split the comission with the buyers agent. If you hire a REALTOR(r) than they are bound by the code of ethics and owe all their duties to you.
Benefits: It does not cost you anything, you can have your agent complete a competative market analysis for any home you are thinking of purchasing so you can make sure it is the right price, The right agent can find you a home quickly and at a great price.
*If you find a house you like and contact the listing agent they work in favor of the sellers. Who is there for you*
Con: It is much more difficult for you to get screwed…Honestly I can not think of any( could be because I am an agent) Just do some work and hire the right one for you.
Good luck
References :
Real Estate Agent.
February 22nd, 2010 at 7:42 pm
When I work with a Buyer, I care more about getting the BEST possible deal then anything else!
True, I get more if the home sells for more, BUT the $300.00 extra I would get if I did not get the price down an extra $10,000.00 is not worth the loss of a possible referral. Most Realtors, good Realtors anyway, live and die by referrals.
http://www.pauld-kw.com
Need a good Realtor?
If In Alabama – e-mail me
If not in Alabama – I can still recommend an experienced Realtor from your area that will give you OUTSTANDING service! I work with a network of Realtors across North Amercia.
http://www.pauld-kw.com
References :