OK, someone please explain to me why I should have a separate buyer's agent for a home sale (long
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AudiWorld Super User
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OK, someone please explain to me why I should have a separate buyer's agent for a home sale (long
rant):
I've spoken with an agent before who tried to compare his job to mine (lawyer), but I don't think the analogy works.
Having one middleman in a purchase is bad enough for me, but a buyer's agent makes 2 middlemen in the purchase.
I looked on Realtor.com and saw a bunch of homes I like. Why can't I just contact the listing agents directly? I understand that as a buyer I don't pay the buyer's agent's commission, but ultimately it gets built into the price of the sale and the agents split it.
Wouldn'the overall cost go down if I eliminated the buyer's agent?
I know a buyer's agent would theoretically guide me through the whole process, but I feel like I can handle applying for the mortgage, hiring an inspector, hiring an attorney for the closing.
Maybe these are dumb questions, but I'm a first-time buyer, and I've never bought anything through a broker.
Why aren't houses bought and sold the way cars are? Just list the damn things online and make your own arrangements.
I've spoken with an agent before who tried to compare his job to mine (lawyer), but I don't think the analogy works.
Having one middleman in a purchase is bad enough for me, but a buyer's agent makes 2 middlemen in the purchase.
I looked on Realtor.com and saw a bunch of homes I like. Why can't I just contact the listing agents directly? I understand that as a buyer I don't pay the buyer's agent's commission, but ultimately it gets built into the price of the sale and the agents split it.
Wouldn'the overall cost go down if I eliminated the buyer's agent?
I know a buyer's agent would theoretically guide me through the whole process, but I feel like I can handle applying for the mortgage, hiring an inspector, hiring an attorney for the closing.
Maybe these are dumb questions, but I'm a first-time buyer, and I've never bought anything through a broker.
Why aren't houses bought and sold the way cars are? Just list the damn things online and make your own arrangements.
Former Vendor
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a buyer's agent is technically working for you...with your best interest
in mind. Im sure you can handle the individual elements of the process, but why not have someone solely responsible for it. Not to mention knowing intricate market value information.
AudiWorld Super User
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like ed said, the buyers agent is getting the best deal for you.
if you see the listing agent he is only obligated to help get the best deal for the seller, sorry for stating the obvious. also if you go look at a house through the listing agent you are obligated to use him/her and can not bring your own agent in later. for us when we bought our house, the listing agent and our agent worked in the same office. she knew all of his moves and told us not to worry about anything about other bidders (the guy was trying to hold off and see if we'd up the price to get the house by telling us there were other contracts). our looked at his mailbox everyday for new contracts and none came in so we knew he was lying. they'll find out why the house is being sold if it's because the sellers are getting divorced or relocating. just little things that ed mentioned.
Junior Member
Joined: Dec 2002
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Also, if you use the same agent later again, you may get a discount
and this time it would mean saving you $$.
However, you may be able to negotiate those 3% or so from the asking price if you purchase w/o an agent. So there are pros and cons...
However, you may be able to negotiate those 3% or so from the asking price if you purchase w/o an agent. So there are pros and cons...
AudiWorld Super User
Joined: Nov 2001
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From: Fairfax Station, VA
Come on, you took agency in law school.
If you don't sign a buyer agent agreement, the agent you end up working with is legally obligated to tell the person paying their commission everything they know about you, inlcuding your negotiating strategies. If you visit several house with an an agent, that agent will get to know your price ranges, tolerances, level of enthusiasm, etc. Do you really want that info going to the seller of the house?
If you don't have any realestate person working for you, you are making the biggest purchase of your life without having an assistance or experience on your side. Of course, even though you are working with a buying agent, that agent has a huge conflict of interest. That agent wants a sale to go through without hassle to get the commission. Thus, your own buyers agent may recommend a decent home inspector, but that home inspector won't get any more work if he kills the sale or makes it more expensive by pointing out little flaws.
Whether true or not, I once asked for a kickback from the buying agent, because I knew exactly what property I wanted to purcahse. The buying agent told me it was an illegal kickback (which I dont' believe), and to pound sound.
If you don't have any realestate person working for you, you are making the biggest purchase of your life without having an assistance or experience on your side. Of course, even though you are working with a buying agent, that agent has a huge conflict of interest. That agent wants a sale to go through without hassle to get the commission. Thus, your own buyers agent may recommend a decent home inspector, but that home inspector won't get any more work if he kills the sale or makes it more expensive by pointing out little flaws.
Whether true or not, I once asked for a kickback from the buying agent, because I knew exactly what property I wanted to purcahse. The buying agent told me it was an illegal kickback (which I dont' believe), and to pound sound.
AudiWorld Super User
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I understand exactly what you're saying and I did not use a buyer's agent...
but you have to take into account that I do A LOT of real estate transactions as an atty. I was able to prepare my own agreement of sale and submit it as my offer to the listing agent and negotitate, etc. Also I knew enough about HUD1 closing sheets to know to dispute ridiculous "fees" that they list.
If you decide to go this route...READ EVERYTHING the listing agent puts in front of you. You will see dual agency agreements...do not sign that. That person is NOT representing you...you are. The listing agent tried to have me sign one repeatedly and I would not. I represent me...not her. PLUS...if you DO end up signing that, it will expose you to ~$150-300 "fee" on the closing sheet, not to mention commission.
Call around, as for inspectors, etc. You can do it yourself...you just have to be smart about it. That said, if you don't have the time to commit, it is often easier to have your own agent.
--morgan
If you decide to go this route...READ EVERYTHING the listing agent puts in front of you. You will see dual agency agreements...do not sign that. That person is NOT representing you...you are. The listing agent tried to have me sign one repeatedly and I would not. I represent me...not her. PLUS...if you DO end up signing that, it will expose you to ~$150-300 "fee" on the closing sheet, not to mention commission.
Call around, as for inspectors, etc. You can do it yourself...you just have to be smart about it. That said, if you don't have the time to commit, it is often easier to have your own agent.
--morgan
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AudiWorld Super User
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GL with your hunt!
sorry I don't have any advice to give since I'm only on the lending side and don't have exposure to that part of my industry. I do however think that everyone here has given you some good advice to consider.
Get a hold of me down the road when you're in the process of getting your mortgage if you have any questions that you'd like unbiased answers for. I can def help with that...and as Morgan mentioned about "junk" fees on the HUD-1 settlement statement, I can check those out for you as well. As a lender, I know what is a legitimate charge and what is just a settlement co. or mtg company trying to deepen their pockets. I've seen some seriously ridiculous stuff and unfortunately most borrowers don't have a clue...
Get a hold of me down the road when you're in the process of getting your mortgage if you have any questions that you'd like unbiased answers for. I can def help with that...and as Morgan mentioned about "junk" fees on the HUD-1 settlement statement, I can check those out for you as well. As a lender, I know what is a legitimate charge and what is just a settlement co. or mtg company trying to deepen their pockets. I've seen some seriously ridiculous stuff and unfortunately most borrowers don't have a clue...
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Actually, I believe kickbacks ARE illegal
unless advertised and made known to all parties involved. If they put out ads like '$500 bonus if you work with us' or '$1000 toward closing for your house', then those are legal.
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