Matteus

If you are doing your own searching do you really need a realtor? I was talking to the CPA where I work and he was telling me I should not waste my time. He told me if I find a house he needs he'll get me in contact with a lawyer friend of his who specializes in putting bids down and doing the whole lawyer part of buying houses.



He said that by not having a realtor I can use that as a buying power since 3% commission won't be going to my realtor and the sellers realtor will then get 6%. He said I can use that as a way to get the sellers agent to want to deal with me instead of another buyer.



Now I don't think it's legal to have the sellers agent work for me to but the way he explained it (and I've forgotten some details) the agent would just be more persuasive with the owners about maybe covering closing costs etc or perhaps accepting a lower bid.



I think one example he used was the house is on the market for 180 and I give them a bid of 175 take it or leave it. The agent then discusses this with the seller and might try and work more things out to get the sale done by me versus somebody else. What do you guys think? I've heard a lot of people not happy with there realtors but they get locked in a contract so they have no choice but to use them.



So if you knew you wanted X house. Would you bother having a realtor?

majik

the seller's agent can work for you as well. There's nothing wrong with the realtor getting both the buyer/seller side of the deal.



I honestly don't think it's really that big of an issue. A realtor can really help your experience. They work for you. They don't get paid unless you buy a house, so if you DO use a realtor, don't be a jerk and use all their resources and time only to give someone else the commission.



Find a good realtor that you like. The positive thing about realtors is they do all the hassle of negotiating and utilizing their knowledge of the market and knowing what's a good price for the home. They protect you as the buyer. They should inform you of important things that you need to know, such as hiring a good home inspector and requiring certain things be fixed on a home before you buy. They can help negotiate closing costs in exchange for sale price.



In your scenario you're assuming that you're going head-to-head with another buyer. That isn't too typical, especially in the economy we're in right now. There typically aren't two buyers making offers within a day of each other with a seller that hasn't accepted. If there is, it's up to the home owner (not the realtor) which offer takes the home.



One more thing... realtors typically get 3% for each side (buyer = 3% and seller = 3%). That 3% goes to the real estate company (i.e., Re/Max, Coldwell Banker, Century 21) for operating costs and then the realtor gets a percentage of that, higher percentages for better realtors. If you're representing yourself with a lawyer, you can save on that 3%. You don't have to let the selling agent represent you. You can represent yourself. But... you have to weigh the cost and benefit. A realtor understands the market for the area you're looking at, works for you, negotiates the price so you don't have to go back and forth. They also know WHERE to negotiate. If a seller won't budge on price, maybe they'll cover some of the closing costs so you don't have that up-front cost.



Disclosure: My mom was a realtor for 15 years and my dad managed a real estate office for 10 and trained real estate agents. I've seen my mom pull her hair out due to frustration of dealing with other agents and the ridiculousness of people giving up a $250,000 home because of a $200 chimney stack thing. I would use an agent for the ease of the experience. Find a house you want to see? Call your agent and have them set up a tour so you don't have to work with so many selling agents (someone has to be there while you're in their home).

Stocker

We used a realtor when we bought our house. All we ever had to do was sign papers*. We looked at no-kidding at least a hundred houses and never had to call anyone but our agent to arrange showings. He arranged the scheduling, he dealt with the owners and realtors.



The amount of legwork he put in and the amount of paperwork his office did, combined with the knowledge of the process I could never hope to have, PLUS the knowledge that it was all done properly with ts crossed and is dotted, and I didnt even have to think about lawyers, or who to use for escrow, who does the inspection/appraisal/negotiations . . . 3% was a totally worth it and I am about the most tight-fisted cheapskate there is.



*Well in my case make everybody wait while I read the mortgage, then signed papers.

Tibbi

Our Realtor was a huge asset. First of all he did the leg work to find the house which we would have never seen on our own. He managed the bidding process, and helped us by being our liaison when we needed someone on the property during working hours. Then to top it off he found our closing attorney which saved us over a grand at close compared to the one the bank wanted to use.



He saved us more money on total house cost than he made in commissions. If we went at it alone we'd be paying $3-400 more a month for half the house we have now.