Using a buyer's agent when looking for a new house (sales, real estate)

[redhighlander]

Has anyone done this? Apparently, they are different than a realtor. If you have used one, what are the differences? Advantages? Disadvantages? Thank you!

[bc02eagle]

here is my take - if you are comfortable putting a value on a house and negotiating then do not use an agent. My wife and I just bought a house in medfield and we were $5k apart on the final number. The listing agent was willing to reduce the commission amount from 5% to 4% because we were not using an agent of our own. In the end she still made more money by getting the entire 4% commission than if she had to split a 5% commission with a buyer's agent.

Most agents you speak with will tell you that you will not save any money by not using your own agent because the total commission amount is negotiated up front when the house is listed. This is simply BS. A listing agent is not going to lose a deal and more profitable one at that if you are a few thousand dollars apart. If they want to get paid they will reduce their commission to get it done.

[knaapan]

If you know the area and have a good attorney, there isn't much value that a buyers agent is going to provide with new construction. Start the conversation by insisting on getting the price lower by not having an agent. Inspection is a must even for new construction.

We just bought a new construction near the area we have been living for more than a year without an agent. Even the negotiations were easier because everybody involved knew we were looking for the savings by not having a buyers agent and you can start negotiations 2-3% lower.

[KenInMA]

We bought a house in VA without one and it actually worked out for us really well. We put in an offer that was significantly below what the sellers were offering and even though they were shocked (SHOCKED!) and insulted (INSULTED!), their agent, wanting her commission, convinced them that it was a good deal. She was positioned to collect the entire commission so in a way she was almost working on our behalf, not the sellers'.

We're currently in the middle of buying a house in central MA and we are using a buyer's agent, but this is mostly due to my move being part of a relocation. I want to ensure I follow the program to a tee so I'm not out any money. But I have to say, our current buyer's agent has definitely been a value add. She thought of things that I didn't and educated us on some MA regional laws and common practices (a mold inspection, a separate water inspector -- it's well water, just to name a couple), and she was also very good at negotiating and got us the price we wanted to pay. Lastly, the seller's agent is annoying as hell and I'd quickly lose patience with her. It's because I had the third-party that this purchase is going through.

So, in short, there are pros and cons. A bad buyer's agent can wreck a deal and a good one could save it. I'd "interview" a few different ones. Find out who listens to you and isn't just out to make the biggest commission possible. In other words, if a buyer's agent throws out things like, "This house is priced to sell!" or "You really should act now, the rates are going to go up soon!" then they are NOT in your corner.

[tikaram]

Originally Posted by KenInMA

So, in short, there are pros and cons. A bad buyer's agent can wreck a deal and a good one could save it. I'd "interview" a few different ones.

Yes, please do interview several agents before making a decision. My personal opinion is that agents do bring value and ease up tense negotiations, IF THEY ARE GOOD AGENTS. I often hear people blame their agent, but in the end they should blame themselves because they didn't take time to choose wisely. Bad agent is way worse than no agent. And good agent may just save the day (and the deal) for you.
At the same time, there are things that an agent cannot do for you by law - that's why you hire an attorney. You should never buy real estate without an attorney and home inspector (even for new construction - you don't know where the builder might have cut corners, and since nobody ever lived in the house yet, future issues are not apparent the way it may be in an older house).

[MikePRU]

I just wanted to add a little knowledge to this thread. I'm going to avoid offering much in the way of opinion because being a real estate agent myself no one is likely going to take my opinion on the subject seriously anyway.

Originally Posted by redhighlander

Has anyone done this? Apparently, they are different than a realtor.

Here are a few definitions of terms to help clarify who is what in the real estate industry:

Real estate agent: A professional licensed by the state to act as a sales agent in real estate transactions. There are three types of real estate agent and any licensed agent can act in any of the three roles:

• Buyers agent: this agent represents the buyer, acts only on behalf of the buyer, and only in the best interests of the buyer. Receives a commission from the seller.
• Sellers agent: this agent represents the seller, acts only on behalf of the seller, and only in the best interests of the seller. Receives a commission from the seller.
• Dual agent: this agent represents both the buyer and the seller in the same transaction. The agent in this case must act in the best interests of both the buyer and the seller. Receives a commission from the seller.

Realtor: A real estate agent who is a member of the national, state, and local Realtor board. The Realtor board is a trade group sort of like a union but much less powerful or involved in day-to-day. Agents who are Realtors have pledged to conduct their business according to the Realtor code of ethics. A Realtor must be a real estate agent but a real estate agent does not have to be a Realtor.

Originally Posted by redhighlander

If you have used one, what are the differences? Advantages? Disadvantages? Thank you!

I just want to echo what others have already said: a bad real estate agent is worse than no real estate agent at all, but a good agent can be worth more than their weight in gold.

When it comes down to it the average person moves every 5-8 years. The average real estate agent probably has at least 5-8 transactions a year. That's a lot of extra experience to bring to the table. Buying a house is the largest single purchase a person makes. Why mess around?