Buying MI real estate WITHOUT using a realtor

[Jswee]

Siberia -

I have to disagree with some of your assessment. I'd agree that discount brokerages make a great deal of sense on the listing side of the equation. With the advent of the internet, the skills required to market a property are almost nill. That is why you see many flat fee discount brokerages evolving, despite the best efforts of both MAR and the legislators that they have in there pockets enacting laws that would hamper those efforts. I would argue, though, that on the buyers agent side of the equation, if an agent is doing their job correctly, they more than earn the 2.5 - 3% that is their compensation. They may work with a given client for a year or two finding the right property and have several hundred hours of time invested in that client. By providing information and negotiating assistance that most buyers need, they often save the buyer more money than the amount of their compensation. Having said that, I would admit that many agents who call themselves buyers agents really don't have a clue as to what they are doing. As with any endeavor, some practitioners are going to be more competent than others but if you can find a good buyers agent who are doing their job, it can be a huge benefit to making a successful purchase. If you find a buyers broker that would be willing to work for a few hundred dollars I would caution you to remember that you get what you pay for.

[AliceT]

London Girl, since you are in MI and aware of the area, I would go an entirely different route and advertise in the local or regional newspaper what you are looking for and give only a ballpark figure that you are willing to pay - such as rounding it off to the next highest 10-20,000. The people thinnking about being "by-owners" and those who have listed their property but haven't even had an offer may want to stray and deal directly with you.

This serves an additional purpse, real estate brokers or agents are also going to see your ad and will try to bargain for your business as your buyer's agent. When they come to you, you have the upper hand in negotiating.

Just my 2 cents.

[London Girl]

Thank you all for your responses!

I have made an offer on the property I like and will now wait and see what happens

I have chosen to use a local discount broker and we have agreed it's a well positioned offer - if it's accepted I will be very pleased! And if the sale completes I will also receive back a few thousand dollars in commission which will be well worth having.

Jswee - thank you for your list of items to take into consideration, it is a very helpful and comprehensive list. I have already taken pretty much all of these factors into account but will definitely check the sewerage/septic info that you suggested - I have already ascertained there is nobody on the Sex Offender's Register living in the surrounding area - (this type of information is not available in the UK but it definitely should be in my opinion).

My offer is contingent upon a satisfactory home inspection report and survey.

Alice T - thank you for your response - it is certainly something I have considered

So, fingers crossed, it will all work out for me

I will keep you posted.

[wyoman]

Originally Posted by SteveVolkers

These are great questions. Here is my thoughts as an agent.

1. Seller has agree up front to pay the commission what ever that might be. If I as an agent bring a buyer to the transaction and they are not represent by another agent at time I might have an agreement with the seller to take a reduced commission. But it is rare to cut the commission in half because as the selling agent I end up doing just as much work if not more if you came with an agent.

2. I worked with buyers in the past that wanted to represent them selves to save some of the commission. But they might have been able to get a better deal on the home if they had worked with a buyers agents.

You might save some on the commission by doing the work yourself but you might have gained more by having the back ground of the neighborhood price with your buyer agent.

I could go on but it seems you are not really interested in a Realtor opinion. If you are your welcome to give a call. 575-1153

If don't mind jumpin in on your forum-I'll give you my 2 cents! Get a pro to help you find the home of your dreams-not only do they have the ex-pertise they also have the inside track on homes that are going to be listed before they really hit the market. Be consise in what you plan to spend and they won't waste your time or they're own showing properties that will not meet your needs. Bringing in another party will only complicate things and may make you lose that special place! I have found that they are professional and will keep you well informed and even tell you up front if the home will qualify for the type of financeing you will be using to purchase your home! Never had a problem with a realator-remeber they to pass a pretty stiff test to get a license-and to build a good clientle have to be honest! My 2 cents-and I'm not a realator but have had great success on several homes using thier services. Thanks!