Purchasing a home without a buyer's agent? (Dallas, Howe: appointed, short sales) - Houston - Texas (TX) - City-Data Forum

xlinked · 07-19-2012, 07:36 AM

We are ready to purchase our new home in Dallas. We did the homework and narrowed our listing to 5 houses and got the MLS report from agents we contacted earlier. So now we are debating if it is nessesary to hire a buyer's agent. A friend who's also a realtor told us that a good buyer's agent will do research on the current market, point out downsides of a house and be a strong negotiator. However, just maybe my opinion, I doubt an agent will tell the whole truth of a house because if he does so buyer will offer lower price which makes it harder for him to negotiate. It seems to me that a buyer's agent is only making effort to close the deal. The higher price of final sale the higher commission for him.

Should I contact seller's agent directly or get myself a buyer's agent? Any suggestions would be greatly appreciated

cheryjohns · 07-19-2012, 07:45 AM

That would be the sign of an agent who doesn't ever want any referrals from past clients. Short-term thinking.

Didn't you get a good vibe from any of those you talked to earlier? That might sound silly, but when I am looking out of town for a good agent for a friend or relative - I can always tell from the conversation who knows their market and if they are ethical. None of the people have been disappointed in their out of town or out of state agent yet.

HoustonRonnie · 07-19-2012, 08:07 AM

Agents' livelihoods are based on volume, not maxing out single transactions. They want you to send others to them. If that's not their MO, then they won't be around long.

Ronnie

jtothemak · 07-19-2012, 08:37 AM

When buying a home an agent is very helpful. They should know things that you don't and can help guide you. Out of the 5 homes you are looking at maybe some are already under contract but the listing is just not updated, others short sales or foreclosures and even have crazy terms. If you are asking this question on a forum then you need an agent, it is not like it costs you anything. Heck even call the listing agent of the homes you are interested in and if you like them make them your agent.

Find an agent that is a full time Realtor, that is in the area you are looking at and not on the other side of town and when you call them they call you right back.

Beto · 07-19-2012, 08:47 AM

I would look at getting a buyers agent for the simple fact that he or she will do whats in your best interest. I have come across some stories from buyers who said that the sellers agents screwed them over and that they wish they would have gotten their own Realtor. Again, not all agents are unethical it just boils down to who you feel has earned your business and will do what is in your best interest.

City Love · 07-19-2012, 09:29 AM

Definitely get a buyers agent, but not just any agent. Like mentioned, a good Realtor will look out for your best interests not just to try to close a deal. I'm not alone when I say this, but I've personally said negative things about a property that completely killed my clients interest in a home. Most all the information is out there online, a good agent knows this and won't try to hide anything but will actually bring it to light for you. It's all information that a homeowner can find out down the road, so why not mentioned it BEFORE they purchase.

Do your research before negotiating on the house you like. Select a good agent and give him your list. Have them research it and ask for their thoughts, see what they tell you.

Good luck

oceangaia · 07-19-2012, 10:28 AM

Quote:

Originally Posted by cheryjohns

That would be the sign of an agent who doesn't ever want any referrals from past clients. Short-term thinking..

That may be true but that could also be said of a seller agent. Even though a buyer agent has a fiduciary responsibility to represent the buyer, there is still a conflict in interest in that the buyer wants the lowest price and the lower the price the less the agent makes. That's not to say that any particular agent would put their own interest over their client's but that the "conflict of interest" exists.

westres1 · 07-19-2012, 11:49 AM

Why are so many people so suspisious of Realtors? I swear this was the main reason I quit. I was so sick of people thinking I was making it up that there are multiple offers, or not believeing that the house is already pending because it doesnt say that yet on HAR...on and on. The agent is there to explain the process, negotiate and when things come up with appraisals or financing they usher you through those issues. All of this without costing you a penny. So why all the distrust? I just dont get it. Its a big purchase you need an agent representing you.

dosto · 07-19-2012, 12:04 PM

We just bought a house without using a buyer's agent. We are too picky about houses and the process of purchasing in general. I also believe that no agent would bargain for the house for us like we did. I mean, I can totally see us being a major pain in the rear for any agent.

This is not the first house we bought without the buyer's agent.

On the other side, I can't tell you how many problems we had contacting seller's agents. As soon as they hear we don't use an agent and want to look at the house, they either don't want to show it to us or give us hard times. I had to send a couple of complaints to managing brokers and even one to the board about some realtors' conduct.

marksmu · 07-19-2012, 12:05 PM

Quote:

Originally Posted by westres1

Why are so many people so suspisious of Realtors? I swear this was the main reason I quit. I was so sick of people thinking I was making it up that there are multiple offers, or not believeing that the house is already pending because it doesnt say that yet on HAR...on and on. The agent is there to explain the process, negotiate and when things come up with appraisals or financing they usher you through those issues. All of this without costing you a penny. So why all the distrust? I just dont get it. Its a big purchase you need an agent representing you.

Its not that people do not trust realtors - its that most people feel like a realtor is drastically over compensated for the service provided. With an in town move where the buyer knows the area, the costs, and the risks, a realtor has very little information that an educated buyer can not obtain for himself....Realtors primary usefulness now lies in out of town buyers, or uneducated people who need their hand held through the transaction.

So why be suspicious? I have had realtors tell me that they are not allowed to negotiate with me b/c I am not represented...I have had listing agents refuse to show me properties b/c I am not represented. I have had listing agents tell me that its illegal for me to buy property without using an agent. I have had listing agents refuse to transmit my offer to the seller. The list goes on and on and its not isolated to my experiences. People are suspicious b/c most of the realtors are looking out for other realtors by refusing to do business with someone who is not a realtor. Its dishonest and its time for that change.

There is no reason in the world that a buyer should not be allowed to deduct half of the commission against the sales price if he does not come with a realtor except that realtors refuse to do it b/c they are rabidly protecting their livelihood. Realtors have a strong voice and are well organized....they are clinging to their commissions despite the fact that the internet is now doing 9/10 of their job for them.

The 6-7% commission is alive and well now, but it is in trouble. The internet is able to quickly and accurately answer nearly any question that a realtor can and it does it for free 24/7.