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realtor or no?

 
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newbie
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PostPosted: Fri Apr 30, 2010 5:59 pm GMT    Post subject: realtor or no? Reply with quote

Hi all,

My wife and I are potential fthb's and have been looking for a sfh in the western suburbs for a prolonged time. We have worked with several real estate agents over that time period and are beginning to doubt that, when the time comes to make a purchase, that they will have provided anywhere near enough added value to justify their hefty commission. Now, we have never made a real estate transaction before, so we are a little nervous about making a mistake by dumping the agent if he might actually have something to bring to the table when estimating comps, negotiating, etc.

I am interested to hear what people on this board think about the relative merits of buying using : 1) a traditional real estate agent; 2) Redfin or a similar agency that charges a lower commission; 3) a real estate lawyer and no additional agent; or 4) some other type of representation that I don't know about.

Thanks so much for your advice in advance.
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Guest






PostPosted: Fri Apr 30, 2010 6:39 pm GMT    Post subject: Reply with quote

You may find this discussion useful

http://forums.redfin.com/t5/Boston/Buyer-s-Agent/td-p/30009
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GenXer



Joined: 20 Feb 2009
Posts: 703

PostPosted: Sat May 01, 2010 12:27 am GMT    Post subject: Reply with quote

I can recommend a real estate lawyer who's very good, and who charges a fraction of the commission that agents charge, which is comparable to what websites like ziprealty charge. I know him personally, and I believe he can help more than the realtors. I'm sure you can do everything yourself, and that's what I'd do, if you are willing to do your own legwork. There is just too much shady stuff that's going on around these parts - at least you may want to hire a lawyer to review your documents.
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balor123



Joined: 08 Mar 2008
Posts: 1204

PostPosted: Sat May 01, 2010 12:52 am GMT    Post subject: Reply with quote

That avoids giving the commission to one agent but the other agent will get it instead so not much really gained here. The system is constructed in this way on purpose.
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Kaidran



Joined: 17 Mar 2010
Posts: 289

PostPosted: Sat May 01, 2010 1:06 am GMT    Post subject: Reply with quote

I tried going without an agent in 2007. I put in an offer but pulled out after the inspection. My thinking was that if there were multiple offers then the sellers agent would push my offer more strongly as she had a lot more to gain.

It was pretty scary doing it on my own though in truth it is not complicated you just worry that you are missing something. A lawyer is a must. If I buy again it would be through Redfin, the money back is too good to miss.
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Devlin



Joined: 25 Aug 2009
Posts: 13

PostPosted: Sat May 01, 2010 2:27 am GMT    Post subject: Reply with quote

Ask yourself the following questions?

Are you knowledgeable about systems, wiring, plumbing, foundations, roofs?

Are you a numbers person and understand RE related numbers? taxes, water bills, insurance estimates, amort schedules.

Are you a good negotiator? I think many RE agents SUCK at negotiating. They can make sure you get the property, but at what cost?

Analytical skills? Can you recognize comps and how they relate to your subject property? do you know market trends in your area?

Do you have a weekend to become a Salesperson?

If you answer yes to all of these, I think you are better suited than 95% of RE agents. Find yourself one of the 5% or get your own license and hit the ground running.

You have a better chance of getting a property if you let the listing agent keep both commissions. If you are hellbent on one property, that will get you over the top compared to other offers.

I once had a buyers broker tell me that he will push the 3% commission properties on his buyers. he asked me, why he would spend your time showing clients 2% deals when he could show you 3% deals.

I have my salesperson license and MLS access. I like being able to get up and go to a property. I have no need for a home but I do have a need for a great investment. If something pops up on MLS at 5pm, I like knowing I can view that night and have an offer submitted by 9am. You can't do that with most brokers.

I am not bashing the cream of the crop brokers but I am bashing people who don's know Sh!t about real estate and push you thru the biggest investment of your life.

If you have massive income, I would simply find that rare agent and let them know they will be rewarded with a huge buyer's commission or some extra cash if it's a small purchase. interview a lot of agents and grill them if given the opportunity. Buying a $300,000 house may not get you a top agent...........

Again, what do I know, I don't own any real estate and live in a very low rent apartment with three roommates. I spend my weekends fishing and skiing instead of paying a mortgage/high rent. I've made offers that have been within a couple thousand of the sales price but not the high price. When I NEED/WANT a home (2 years), I'll step up my bids but for now I'm looking for those rare bargains. I've seen maybe 4 bargains in my two years of watching.

Then again, I've acted on behalf of a seller on hundreds of very large commercial real estate transactions.
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balor123



Joined: 08 Mar 2008
Posts: 1204

PostPosted: Sat May 01, 2010 5:09 pm GMT    Post subject: Reply with quote

I think even here we believe that real estate agents provide value to most people. We don't like the system, which is highly biased towards the industry. And we, like most Americans, believe that many, but not all, real estate agents are disproportionately compensated for the requirements required. I don't know anything about plumbing or changing the oil in my car but those professions (outside of Boston) typically pay next to nothing because you can learn those skills in a very short amount of time with minimal investment.
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mpr



Joined: 06 Jun 2009
Posts: 344

PostPosted: Sun May 02, 2010 3:20 am GMT    Post subject: Re: realtor or no? Reply with quote

In an ideal world you'd be able to do this yourself - there are many
countries where buyers agents are not the rule. However since the
whole system is set up this way here it makes things more difficult.

First, you have to know your target market very well. This goes
whether or not you're using a realtor (I'd never trust a realtor
to advise me on comps - its your money after all). However since
you're trying to squeeze out an extra 2.5% it becomes pointless
unless you can pinpoint what a place is worth to within about
this margin.

Next, its not a given that just because you dont have an agent you
get half the commission. This is something you have to negotiate,
and many agents wont give it to you. They'll have arguments for why
not, trust me.

Its especially tricky to get the best price possible and the 2.5%.
I think some agents will view you differently when negotiating
than they would another realtor.

I agree with Devlin that many realtors are not good negotiators.
This is a problem, because the most serious thing they can bring
to the table would be negotiating skill in situations where
things are a bit tricky - multiple offers for example.

Maybe Redfin is a good compromise.

As long as you know the market very well, and have done your
other homework (questions to ask, how the process works etc.)
there is no harm trying to do it yourself. But I do think a realtor
(especially a good realtor) makes it easier because the whole
system is built that way.









newbie wrote:
Hi all,

My wife and I are potential fthb's and have been looking for a sfh in the western suburbs for a prolonged time. We have worked with several real estate agents over that time period and are beginning to doubt that, when the time comes to make a purchase, that they will have provided anywhere near enough added value to justify their hefty commission. Now, we have never made a real estate transaction before, so we are a little nervous about making a mistake by dumping the agent if he might actually have something to bring to the table when estimating comps, negotiating, etc.

I am interested to hear what people on this board think about the relative merits of buying using : 1) a traditional real estate agent; 2) Redfin or a similar agency that charges a lower commission; 3) a real estate lawyer and no additional agent; or 4) some other type of representation that I don't know about.

Thanks so much for your advice in advance.
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Kaidran



Joined: 17 Mar 2010
Posts: 289

PostPosted: Mon May 03, 2010 11:29 am GMT    Post subject: Reply with quote

I cannot see any reason not to go for Redfin. I love the structure of the company and the business plan. They have specific agents that do nothing but negotiate and they give you back half the commission. (Though a minimum applies).
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CL
Guest





PostPosted: Mon May 03, 2010 11:57 am GMT    Post subject: Reply with quote

If you think you need a bit of hand-holding, then find a good traditional agent. If you are confident on your resourcefulness on handling various aspect of the transaction, go for redfin.

I asked myself this question, explored both options (traditional agent vs. redfin/ziprealty/terrirtoryre etc), use them both for some trails and decided to use a traditional agent.
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Kaidran



Joined: 17 Mar 2010
Posts: 289

PostPosted: Mon May 03, 2010 12:10 pm GMT    Post subject: Reply with quote

I remember the first house I bought in Mass. The buyers agent did so little it was ridiculous. She knew how the process worked though so she provided the forms with all the contingencies in place and had the checklists for everything we needed to do. We still had to do everything but as long as you have everything layed out it is fine. That was why I felt confident doing it myself the next time, its just that you have this nagging doubt that, maybe the contingencies are different, or maybe I did not word it right. Redfin got me because they do everything my original buyers agent did and they split the commission. You just dont have the same person to hold your hand all the way through so you dont have the imagined "relationship" with your agent.

I'll stop writing now because I know I'm starting to sound like I work there.
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JAP
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PostPosted: Fri May 21, 2010 8:17 pm GMT    Post subject: Reply with quote

I couldnt agree more. I just bought with Redfin and it was a fine experience. I did most of the upfront work myself (research on the the different towns/schools/) drove through towns 5-6 times to make sure I liked the area and people, spoke to some people I met at the ice cream shoppe, restaurant, etc, went onto town websites, bought the town newspaper, spoke to my colleagues at work about the different towns.

If you are willing to do all of that over lets say a 12 month span to get a really good feel for all of the above information you will collect I would say Redfin is the way to go. Traditional agents are a waste of time and money overall. There is so much information available on the internet these days there isn't much an agent can give you that you cannot find on the internet. If you have no desire to any of the above then a traditional agent would be good for you so they can spoon feed you all of the above info. That is IF you can find a decent realtor. They do exist but are difficult to come across.
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