Exactly what does a realtor/RE agent do for a buyer as far as specific tangibles?

Question

Other than showing houses, filling in the form fields on a standard purchase contract, then faxing it to the listing agent, what does a realtor SPECIFICALLY do for a buyer? After completing a few fields in the purchase contract, what documents if any does a realtor prepare for a buyer? It seems to me that most if not all of the real work is done by the title company and the escrow agent. Does a realtor do any other tangible work besides open key boxes for houses, prepare and submit a preformatted contract, and show up at closing to collect a check?

In regards to the first 3 answers, my RE agent has done none of that for me. She has prepared and submitted two offers. Each time they came back with an offer that was only 0.5-1% less than list price and she said that their counters were great and I should take it. These were homes that had been on the market 3 months and 9 months. She has not once tried to negotiate me a lower price, I had to insist on it, and she made comments as to how they don't have to sell me the house and I told her that I don't have to buy their house because their are a 100k others on the market. She has over 10 years experience. She did not want to put a single contingency on my contract and I wouldn't go for that. I wish I had never signed an agreement with her. Early on, I thought of putting her on my companies safe vendor list because I liked her personality. Glad I didn't. There are no realtors on our the list but employees have listed referrals for almost everything else and we all have used i

Answer 1

Sometimes it is not well understood, why realtors exist or why the make the money they do. To be sure, there are examples we can all point to that appear not to justify it...but but..but...ecomonics are efficient...,,money is not spent without a reason. Our long existance provides a hint of the benefit we provide.

In a nutshell:

What the best of us do, is create opportunity, save money, and save time. At the time of purchase of a large asset, this can be very, very, very valuable to the princpal. That is why we are here to stay (at least those of us to do in fact create value for our clients).

We make the buyer more powerful in the market. We help you offer less when possible. We tell you when you are wrong and need to reconsider your thinking to keep you real(we are honest with you whether you like it or not). We resolve your obstacles. We let the other side know you are prefessionally represented and can't be easily misled.

We are being paid a fee based on success only (I wish my doctor was paid that way), and it is substantial, so we are the guy that will drive accross the state on a holiday to troublshoot some dangling detail that endangers your position.

We keep you lawyer working for you, to get them fully up to speed when they need to step in. We help you get the best possible financing, and make the most of it.

I can tell you that many a professionaly appropriate conversation with an agent on the other side, or an adjusted offer structure, an item investigated, or any one of 100 variables expedited has made the difference between success and failure for a buyer.

Can you buy without an agent? Or course. You can also build a house, fix your computer, do a lot of things on your own....but it is a fact that the best represented clients, generally buy better homes. Those on their own get what is left over, and pay more of it.

As in introduction...My firm only represents buyers. My firm has represented buyers in 80 Connecticut town. I have personally represented buyers from 100k to 6M.

Finding home is part of what we do, but actually really a minor part.

We are problem solvers, guides, consulants... who make the deal happen better....at least that is the role of the best of us.

Feel welcome to ask any questions, John BuyCT.com

Answer 2

My problem is with the payment model. They say the buyer doesn't pay the real estate agent, but of course, the buyer is the only one bringing money to the deal so he IS paying everyone. What they mean is that the buyer doesn't have any option of negotiating how much the real estate agents are going to be paid. The way the deal is done, from a financial perspective, the buyers agent is better off getting a worse deal for his or her client. The sellers agent should be rewarded for getting a higher price, and the buyers agent should be rewarded for getting a lower price. This would provide extra motivation to negotiate for the buyer.

Answer 3

They prepare commission agreements, offers to the seller, try to get as much closing costs as possible, negotiate the earnest money, as many appliances in the house, possibly some furniture, etc. Realtors for buyers are really great to have especially if there is a big stink at the table over something. They protect the buyer.

Answer 4

The biggest thing they do is provide information, help people find lendors, get pre qualified. They also search the MLS for potential properties. Provide a filter so the potential buyer doesn't have to see each house themselves to see if it meets requirements. The the paperwork, help you get a better deal (for buyer/brokers), be the middle person during negotiations.

If a person wants to they could do any one of these, possible all of them if they have enough experience, and faith in themselves that they won't make a costly mistake. Most people don't fall into that category. Most people do two or three houses in a lifetime and laws and requirements change over time.

Personally I don't want to take that chance. If you do, go ahead.

Answer 5

Your Realtor does a huge variety of unseen items for you, or at least should including- locating homes matching your criteria, keeping a close on your market to find new houses, or to have knowledge of average list to sale ratios, educate you about the buying process start to finish. prepare, submit and negotiate any offer you discuss. Suggest, and follow up on your transaction from contract to closing including inspections, mortgage issues, clear title, appraisal, closing preparation etc.. It is your agents responsibility to work in your best interest and assist you in finding the best for you including monetary value location etc..

I think it is quite disturbing that Realtors have a bad rep. after many of us work long hours, to assure our clients happiness and future business. Personally, I work 40-50 hours a week every week. I find people constantly question my expertise, and why I should get paid in these public forums. However, I challenge anyone to buy a house with few to any problems, without professional assistance.

Answer 6

The real value is the agents network, his ability to advertise and market a property.
The negotiation process that should get you a better price or deal.
Finally, the agent should keep you in compliance with all laws and if there is a problem, the agent has taken the risk and could be sued (rather than you).
He carries insurance and is the deep pocket that a law suit would go after. The agent in that respect, is your cover.