Buying a Home from a Realtor - Should I Use One Too?

Question

I am currently considering buying a townhome. I happened to be driving by one day, saw an open house, so went inside and took a look.

It turns out that the owner/seller of the home is also a realtor (she's selling it after she got engaged and never lived there). I looked into it a bit, and I think I'm very interested in the townhome.

Now, my question - should I use my own realtor to engage in price negotiations with the seller/realtor? Is there any benefit to sending in my own realtor to do this, as opposed to trying to do it myself? It turns out that I have a friend that just received her realtor's license (about a week ago). She's used some tools through her company to do things like a comparative market analysis (see what identical homes in the area recently sold for, versus what the asking price was). While she's definitely a rookie, I'm wondering if being approached by another realtor could help me drive down the negotiated price.

Anybody with an opinion?

Thanks!

Answer 1

I would say use your realtor ....if this is the first time you have purchased a home. They can guide you about home inspections etc. However, if you have done this before then make your offer - zillow.com is a great site to get info. about housing prices and you don't have to be a realtor in the real estate business to access it - it will give you a very good idea of the townhome's value. Also, the home owner may have some room to negotiate her price - she may or may not have to pay a commission to her office for the sale of her own property. Remember, in every neighborhood there is a high and a low price - and the bank appraisal will save you if you were to pay to much - the bank won't give the loan because no other comparable property in the area sold for that price unless your "realtor" can prove it...and that is what the comparative
marketing analysis is used for.

Answer 2

Yes, you should have one of your own.

Realize, by having your own, you do NOT pay any more for your house. The commission (usually a percentage for the house's selling price) is SPLIT between the realtors involved. So, if you have one, yours and theirs will split the commission. You do NOT pay any more.

Also realize, TECHNICALLY, your realtor does NOT work for you, as he/she will only make money when the house is sold, and is paid by the half of the percentage seller makes. But, a good and honest realtor will look after your interest.

Answer 3

It is definitely a good idea, if you don't really know how to go about this. It is more than worth the money to have someone looking after your interests. I've just recently bought a new home & my realtor was a lifesaver (or at least a money saver). She pushed a bit when I would have stopped & I got a much better deal.

Answer 4

definitely get your own representation! your newbie friend is probably okay, as long as she works for a very strong and supportive broker. (it's no big deal to use a rookie, but if she isn't getting support, she could make some costly mistakes!)

if she did the comps, ask her to check what the seller actually owes on the property, how long on the mkt., what the reports look like, etc. these are all factors that might help your negotiations.

good luck (and welcome aboard to your friend!)