Use a realtor, or not?

Question

If I already know what home I am interested in, and have been pre-qualified by a lender on my own, do I need a realtor to help me purchase a house? Will the realtor selling the house work out the legal details for me? Is there more room for negotiation if the realtor is not splitting the commission with anyone else?

Answer 1

I can't answer your question, because I don't know your situation. But I can ask you some questions that may help clarify the issue in your mind.

Do you know how to write a sales agreement? Do you know how to do a title search? Do you know how to find comparable homes that sold in the area recently, and how much they sold for? Do you know how to find a competent home inspector who will inspect the house for you, and list the things that need to be repaired NOW, and which you can wait on? Do you know what things should be on a seller's disclosure form? Do you have any experience buying or selling homes already? Are you prepared to walk away from the deal if the sellers want more than you are willing to pay? Are you emotionally invested in the deal already?

These are just some of the things that a realtor can help you. There are bound to be more, of course.

Keep in mind that a realtor will be working for the SELLER in all cases, unless you specifically sign a buyer's agency agreement with your realtor. Also, keep in mind that you can negotiate the fee with a realtor. If you already have found the house you want, and the realtor doesn't have to jump through hoops to make the deal happen, they may very well be willing to cut the fee they charge for the deal. However, also keep in mind that in my area, at least, the seller pays the realtor, not the buyer. So if you use a realtor, you may not be paying their bill any way. You can always ask questions about money and charges - after all, this is a business deal. You are entitled to know about everything up front, rather than just be surprised at the end.

If you go with a realtor, ask friends and associates for references, and interview at least 3. You want to find someone that has a good reputation in your area, and who will work hard for you.

Answer 2

Whether to use the seller's realtor for this transaction depends upon that realtor. You are right that you can request that the price of the house be reduced by the amount of commission she would have shared with another realtor coming in; however, she doesn't have to do this. Being a realtor who represents both parties is the hardest job we do. Many won't even do it - the legal ramifications are tough if all parties don't feel they are being treated fairly. Check out her reputation. Does she do a lot of sales? Is she experienced? If not, then get your own. If so, then remember that she has a lot at stake here to make sure everyone is happy and the sale closes. If she screws up and doesn't treat people right, the sale falls through and she gets nothing. If she is going to get 4% instead of 3%, she will work harder for all of you. Reputation and experience plus having a good broker behind her will make the difference. Meet with her and be honest. Tell her you are thinking of getting your own realtor. A face-to-face will tell you a lot.

Answer 3

Use a Realtor other than the listing agent. The commission will be paid either way. It will either be divided between two Realtors (listing and selling) or one will get the whole thing (in most cases). Yes, your Realtor will help you work out the legal details and guide you through the entire process. It will be a much more smooth transaction if you have someone working for you. Most companies don't even charge a fee for buyers.

Answer 4

You shouldnt need a realtor at this point. It seems you know enough...to know that there could be room for negotiation, and guess what, you're right! It does give you room to negotiate.

What I would suggest in your case is, instead of negotiating on the "sales price" per say, negotiate on having the seller to contribute towards paying your closing cost. Say about 3%? End result on the purchase price, thes same, the difference is it allows you to finance the closing cost.

Perhaps, you should think about what it is you are really trying to achieve and its benefits to you. Two things to think about. First, having the seller contribute obviously means less out of pocket for closing cost from you (Example: 3% of $200,000 is $6000 .To most homebuyers, that's a lot of MULA!) Second, saving $38 on your mortgage payment? (That's shaving $6,000 off the the hypothetical sales price of $200,000 leaving you with a loan amount of $194,000 at a hypothetical interest rate of 6.50% on a 30yr term). You decide which outcome willl suit you best. You can go search for any mortgage company website...you'll find mortgage calculators and use the numbers that you've already obtained from your lender.

In anycase, you CAN hire your own realtor just to review the purchase contract for a flat fee (typically between $250-$500) which can be included on the purchase agreement, just the same way if he were to receive commission. I know this because I have done it before! He called it "Review fee", cost me $500.

P.S.
AND THAT'S ADVICE YOU'LL NEVER GET FROM A LENDER...only from Mortgage Brokers!!! Proof in the pudding... or you wouldnt be here!

Answer 5

The neat part of real estate is that you can do anything you think is in your best interest, however; thinking and knowing are really two completely different things. A licensee is trained and educated to know what the common non licensed person doesn't know when it comes to a real estate transaction. The listing office that has the property for sale has most likely already offered to split their commission with any other licensed agent that comes into the transaction with a buyer in tow, and in almost all cases the licensee with the listing will get to keep all of the commission if another agent is not involved, so the commission is not an issue.
What is an issue is what protections and knowledge base you should have in negotiating the performances that you should require the seller to do according to your state and federal laws relating to the transaction and what costs of closing should be negotiated in your best interest and on your behalf.
Think of it this way. You go to the doctor armed with a medical encyclopedia and he tells you that he has to remove a vital part of your body (where do you find a second opinion in your encyclopedia?). Do you think it would be wise to ask another doctor for a second opinion?
Buena Suerte

Answer 6

Look at it this way, the realtor on the selling end is probably a close friend or family member of the seller. Do you really want him/her representing you to get the deal done?! They already have the seller's best interests in mind~! Don't be foolish! Get a realtor that a friend or family member has used and trusts. They may be able to save you several thousand dollars and they don't cost you a penny!!!

Answer 7

In your situation I would hire a real estate lawyer to represent my interests. Most things in real estate transactions should be negotiable, so you should be able to get the house for at least 2% less than the list price. I would make an offer lower than that and if they counter I would knock 3% off their counter-offer and point out that the Realtor is not splitting the commission.

Answer 8

Yea give it a shot and be prepare to walk at ant time and get a Realtor. It is not like you can trust one any ways so it sort of goes like this, I would Rather know that i hanging verse be hanged by others.
Since you are buying you may want to check this out it may help you, to know why the price are the way they are.
http://www.breakingbubble.com/index.htm

Answer 9

You probably don't need one at this point. However, if the seller has signed a contract with their realtor that pays that Agent the full 6% if you don't have an Agent... then YES, definitely get one because your seller has already agreed to pay it!!!

Answer 10

if you know what you r doing you shouldn't need a realtor but i'd sugest using a realtor beacuse they are professionals and they have to know what they are doingthe realtor probably will help to work out leagal deatails but it really depends on what you think is best for yourself