What is the benefit of using a Realtor?

Question

I mean, if I can find the property i want online. What would the benefit be of using an established Realtor? Do most Realtors have bargaining power to lower the price? Thanks.

Answer 1

Depends. If you are selling, the benefits are obvious; exposure, advertising, etc. If you are buying, it depends on how much you know about certain things; for example, a realtor is responsible to let you know about certain things that an independent seller may 'overlook'; a leaky toilet a rotted foundation, etc. And fighting someone after you've bought the house may be tough. The person may claim they didn't know anything about the home's faults when they sold it to you. A realtor is less likely to take that chance for fear of lawsuits.

Answer 2

We just bought our first house and I was considering not using a realtor, but then we thought about it and realized that it was not going to work. A lot of people won't let you in their house without a realtor. So, right there you've just cut your choices down. Also, the realtor has access to listings that are not made public. They do have some bargaining power, especially when going up against another realtor. And you have nothing to lose if you are just buying. You don't have to pay the realtor a thing, but they still make the commission off the sale of the other realtor's listing.

Answer 3

Are you the same guy that got divorced and signed the papers his ex's attorney told him to?

1 - The listing agent has a fiduciary duty to do the best he can for the seller. He's not being mean to you, he's supposed to do it.
2 - The seller is paying a set percentage in Realtor fees to get the house sold. If there's just one Realtor, he makes twice as much. If there's two Realtors, there's a split. The Realtors know this and expect it.
3 - The Realtor representing you will know about the houses before they go onto Realtor.com or other online house hunting sites. The best deals are under contract that day.
4 - The Realtor representing you does understand the market and what kinds of negotiating work and what doesn't.

So, for FREE, you'll probably get a better deal than if you go out and find it yourself and call the listing agent.

Answer 4

Why wouldn't you use a Realtor? A Realtor will help speed along the closing process and give you valuable information and help along the way. Your Realtor has a fiduciary responsibility to make sure your financial interests are protected.

No, Realtors do not have bargaining power. As a matter of fact, the law of agency prevents the Realtor from bargaining for you.

Besides, as the buyer, you are not responsible for your Realtor's commission--the seller is. Either you use a Realtor or the seller's Realtor will get the full sales commission.

Rick
http://www.fairwaymortgagelending.com

Answer 5

If you know what you're doing, then you don't need an agent. For example, you found a home online:

1. Do you know what the true value of the property is?
2. Have you been watching the housing market in that area to see what the possible future trend is?
3. Do you feel comfortable negotiating terms and writing up contracts while protecting yourself from lawsuits and a bad investment?

If you can then you don't need an agent. In fact, depending on the agent, you might be better off representing yourself.

Regards

Answer 6

Realtors are professionals who adhere to a much stricter code of ethics than agents do. They must take Continuing Education classes each year in order to keep their MLS usage. Realtors can advertise on MLS which is really the best possible way of selling realty. Realtors help save you money in the long run. Their knowledge is invaluable to a new buyer.

Answer 7

It is not the Realtor that lowers the price - it is the BUYER! Don't tell me that you would put in an offer and not negotiate the selling price? - ex: 100,000K - offer - 85K - then the Realtor takes the offer to the seller and tries to negotiate. The purpose of a Real Estate Agent - is to make money - yours when you buy, (he gets a fee) and again when you sell (he gets a fee) these fees range anywhere from 2-5% of the selling price. If you are buying, it is better to look for homes being sold by the owner, without a Real Estate Agent - they are consistently cheaper - and a good lawyer (for the buyer) will see that all is Legal. Look for a lawyer that specializes in Real Estate Law and Transactions. Good Luck, and Save Your Money!

Answer 8

I can understand why some people use realtors, for example when they can not be present for the dealings, but why the market allows them such a high percentage of the sale as a commission I can't understand! I can't speak for the world but my experience has been realtors guarantee nothing except having to share profit. Without realtors everything was better.

Answer 9

If this is your first transaction you should the services of a realtor (buyer's agent). Once you are familar with the process you can retain the services of an attorney. It is really a win-win situation-they don't cost you a thing to have a buyer's agent working with you.

Answer 10

1. If there is a lawsuit, most likely you can hide behind the fact that you had professional representation.

2. It's easier to ask for a better deal for someone else than it is for yourself, it's true.

3. If you are really smart, find the property and let the listing agent handle the whole thing for you. They know the seller best and can get you the best deal.