Did you get your own realtor when you bought your first home?

[slugg]

Three questions for people who have already purchased their first home (or more).


1. Did you get your own realtor when you bought your first home?
2. Why or why not?
3. What would you have done differently?

I've gotten prequalified and I'm finishing up getting my financing in order in the next few days. I've been looking at a few houses online, but haven't been super serious until I get preapproved. So the next step is to decide whether or not I should consult a realtor.

Here's what I'm considering:
- My own realtor, in theory, should look out for my best interest
- ... however, my own realtor costs money.
- ... and realtors are business people - do they really look out for MY best interest?


Feedback? Thoughts? Advice is greatly appreciated

 

[bignateyk]

The cost of a buyers realtor is lumped into the sellers costs, so if you decide to be your own realtor, make sure you demand half the commission from the sellers agent.

The reality is that you can do everything a realtor does yourself, especially on the buying front, with a little bit of research and due diligence. Now that listings are easy to see online, they don't really serve much purpose other than to suck money out of the sale as a middleman.

 

[BoomerD]

The realtor is paid by the seller, not the buyer.

YOUR realtor does (or should) look out for YOUR best interest, while the seller's realtor should be looking out for the seller's best interest.

NORMALLY, we find a realtor to represent our interests, but when we bought our last home, we used the seller's realtor, just because we liked him and trusted him to represent our interests as well as the seller's.

I do sort of agree with your last part...if you don't buy, a realtor doesn't get paid...so helping you buy a house is also in THEIR best interest...but a GOOD realtor will work with you to help you find "the right house."

 

[bignateyk]

The realtor is paid by the seller, not the buyer.

YOUR realtor does (or should) look out for YOUR best interest, while the seller's realtor should be looking out for the seller's best interest.

NORMALLY, we find a realtor to represent our interests, but when we bought our last home, we used the seller's realtor, just because we liked him and trusted him to represent our interests as well as the seller's.

I do sort of agree with your last part...if you don't buy, a realtor doesn't get paid...so helping you buy a house is also in THEIR best interest...but a GOOD realtor will work with you to help you find "the right house."

Not really true. The cost of the sale is inflated to factor in the commission to the realtors, so really, it's the buyer who is paying it.

A realtor is going to want you to buy something as quickly as they can. They would rather convince you to buy a 300K house on day one than have to put up with you for a month to buy a 400K house. The difference in commission simply isn't worth it to them. The more houses they sell/buy the faster is how they make their money.

 

[TerryMathews]

A realtor will tell you things about how to define costs in your purchase contract that your lender can't.

You can research it yourself, but you will cost yourself a lot of money if you don't either have a realtor or research what they do relevant to your situation.

 

[weadjust]

No. I bought a for sale by owner and myself & the bank took care of the rest. No money down and a first time home buyer grant netted me about $2000 at closing, which I had to apply to the mortgage principle.

 

[Golgatha]

http://home.howstuffworks.com/real-estate/house-buying4.htm

If you use a real-estate agent, just remember the seller's agent is contractually bound to try and get the highest price possible. A buyer's agent is contractually bound to get you the best price possible, but if the price is higher, so is their commission; so there is a built-in conflict of interest. However, they are looking to find something you want for the price you're willing to pay very actively, because they want that commission. It's how a buyer's agent gets paid.

For buying, I personally would use an agent. The seller typically pays their commission and they will do a lot of the legwork for you in trying to find what you're wanting. A good agent will also have good advice to give and be able to guide you through the literal mountain of paperwork when it comes time to sign (30+ times minimum) for the purchase.

 

[BoomerD]

Not really true. The cost of the sale is inflated to factor in the commission to the realtors, so really, it's the buyer who is paying it.

While that's true enough, NOT using a realtor to represent you will rarely save you any money. YES, you can ASK for the buyer's agent portion of the commission to be refunded to you, the seller's agent can tell you to pound sand.

A realtor is going to want you to buy something as quickly as they can. They would rather convince you to buy a 300K house on day one than have to put up with you for a month to buy a 400K house. The difference in commission simply isn't worth it to them. The more houses they sell/buy the faster is how they make their money.

Also true enough, but MOST reputable realtors won't do that. They'll take the time to help you find the best house for you. (at least that's been our experience...YMMV)

 

[slugg]

Not really true. The cost of the sale is inflated to factor in the commission to the realtors, so really, it's the buyer who is paying it.

A realtor is going to want you to buy something as quickly as they can. They would rather convince you to buy a 300K house on day one than have to put up with you for a month to buy a 400K house. The difference in commission simply isn't worth it to them. The more houses they sell/buy the faster is how they make their money.

Exactly. You understood me.

 

[sixone]

Yes, I did - but she wasn't worth the powder it would take to blow her up. When some problems cropped up, her comment was "Yeah, I thought that would happen." Thanks for letting me know ahead of time, dimwit.

Got her name from a friend, with a glowing recommendation. My friend feels terrible about it.

Fortunately, I knew what house I wanted before I ever contacted her, and the house was well worth a little nonsense.

 

[Red Squirrel]

I got a realtor, and after seeing all the paperwork involved, I can't imagine going at it alone. I had to sign my name a good 30 times or so. The lawyer was only involved for like 1 of those documents, the rest was all handled by the realtor.

It also made it easier to find houses to look at, since there are a lot he was able to show me that were not quite on the market yet, since sometimes they don't show up on the sites right away or would sell before they even get on the market altogether. Houses often sell the same day they go on the market so you never even see the for sale sign go up or anything because it happens so fast. With a realtor, you can get dibs on such houses if you happen to be around the phone at the right time.

I missed the one that had the address of 1337 though. I did not care what condition that house would have been in, I would have bought it if the price was right.

 

[OILFIELDTRASH]

Good luck looking at houses without a realtor.

 

[rcpratt]

We started house hunting last summer. We ended up using one of my SOs friend's husband as an agent. Terrible idea. Don't ever use someone that you know personally. I don't think details are even necessary.

We ended up building, though, so it didn't much matter one way or the other. Obviously it's unnecessary in that case.

 

[bignateyk]

Good luck looking at houses without a realtor.

How so? If I were selling a house and found out my realtor was turning people away who wanted to look at the house because they didn't have a realtor I'd be pissed and probably fire them for a new one.

Their job is to sell my house. If they're too busy to show up and escort someone through my house every once in a while then I'll find someone who actually wants to do something to earn their commission.

 

[boomhower]

I got my own realtor, used my boss's wife. I already had picked out the home I wanted and the price was set so their wasn't any negotiation. She was an inavluable asset. The home I bought was an FHA forclosure and the paperwork needed to go through that mess would have been a nightmare to do myself, and I don't think an individual can log into the site needed to make a bid on the properties. Her advise and experience on the steps for the process were extremely helpful. Also used a loan officer she recommended and that worked out great as well. (it was the bank I was going to use anyhow, just used a particular person there.)

In short, a good realtor is worth their weight. A bad one will drive you nuts. Getting the house cheaper by not using one is unlikely and you'll just cost yourself time and aggravation.

 

[JulesMaximus]

Three questions for people who have already purchased their first home (or more).


1. Did you get your own realtor when you bought your first home?
2. Why or why not?
3. What would you have done differently?

I've gotten prequalified and I'm finishing up getting my financing in order in the next few days. I've been looking at a few houses online, but haven't been super serious until I get preapproved. So the next step is to decide whether or not I should consult a realtor.

Here's what I'm considering:
- My own realtor, in theory, should look out for my best interest
- ... however, my own realtor costs money.
- ... and realtors are business people - do they really look out for MY best interest?


Feedback? Thoughts? Advice is greatly appreciated

The seller pays the realtor fee. Buyer does not.

And yes, a good realtor is worth it. Trouble is finding a good one.

My wife is a realtor and also has her brokers license. She has been doing this successfully for the past 10 years, it is her sole occupation and she works her ass off for her clients.

 

[Ryland]

Yes we had our own realtor when we purchased a house. She learned what we were looking for and even showed us houses that she wouldnt have earned a commission on.

 

[Midwayman]

First time you'll want a realtor for sure. However keep in mind that a realtor is interested primarily in closing the deal. They don't get paid if you don't close and make more money with more sales vs getting you the best deal.

FWIW if you're okay being a bit more independent, check out if redfin is in your area. You don't get the sort of handholding you would from a normal realtor, but they rebate you some of their comission.

 

[HardcoreRobot]

yes get one. preferably one that will share their share of the sellers commission with you (like redfin).

 

[Midwayman]

How so? If I were selling a house and found out my realtor was turning people away who wanted to look at the house because they didn't have a realtor I'd be pissed and probably fire them for a new one.

Their job is to sell my house. If they're too busy to show up and escort someone through my house every once in a while then I'll find someone who actually wants to do something to earn their commission.

That's great in theory, but in their mind, its the other end who isn't doing their job. They'll be pissed if they're doing the showings and not double ending the commission. Reality is that you listing agent will probably make it much harder to see a home if they don't have an agent.

 

[Midwayman]

Oh and FWIW we recently bought a house using only a lawyer. It's not a huge deal to do it this way, but if you haven't been through the process it can be a lot to keep track of.

 

[Via]

Make sure you do the "home inspector" test. Casually bring up home inspection, and if the realtor attempts to steer you towards a home inspector they "know and trust" I would seriously consider running for the hills.

Also - beware of realtors who

1) are not full-time (I'm not saying there aren't good part timers, but you're taking a big risk imo)

2) try to push home warranties. This is a red flag for underlying issues.

 

[yuchai]

I found it pretty easy to find listings online for my target area, since there is a sharing network that basically has all the listings across different agencies. I don't think this is how it works everywhere, however, and in some cases some listings can only be accessed if you work with an agent who works for the firm that did the listing.

Some people mention the paperwork (I assume this is all related to the contract signing phase). For me, my attorney pretty much handled all of that. In my mind, the attorney is really the expert in that regard and I would actually prefer that it is NOT handled by the agent.

So for me specifically, I see very little value in having a buyer's agent, but can see it as having more value in certain areas.

 

[OILFIELDTRASH]

Next house I get I'm hiring two different inspectors to inspect said house on different days. Possibly even a plumber to inspect plumbing, an electrician to inspect the electrical, etc.. If I spend $1000 but it winds up saving me tens of thousands I'd be way ahead.

 

[MiniDoom]

How so? If I were selling a house and found out my realtor was turning people away who wanted to look at the house because they didn't have a realtor I'd be pissed and probably fire them for a new one.

Their job is to sell my house. If they're too busy to show up and escort someone through my house every once in a while then I'll find someone who actually wants to do something to earn their commission.

The seller agent doesn't have to be there, that's what the lock boxes are for. Buyers agent puts combo code in and shows the house.