Should we have our own realtor as buyers talking to the realtor representing the seller? (buyer's agent, commission)

[vanee]

My husband and I saw a house we're interested in for sale in the area we'd like to live, contacted the realtor listed online for that house and had her show it to us, and are considering making an offer on the house. We don't have experience in buying a house, and I realize now that we probably should have contacted any realtor other than the one representing the seller. We like her and feel comfortable with her, but her job is to represent the seller's interests, not ours.

If we decide to make an offer on this house, should we find a realtor to represent us first? We've already found the house, so all we'd need is someone to help us through the offer/buying process and to make sure that we're getting a fair deal. If we don't get our own realtor, would the realtor representing the seller get double commission, would we save money, or how would it work?

If it makes any difference, we live in an area where housing prices are low to start with, and this house is a fixer-upper. The price will be well under $100,000, so the commission wouldn't be that much anyway. The house is currently unoccupied and (IIRC) bank-owned.

Thanks for your help.

[faabala]

Look at it this way. Would you go to court unrepresented and just depend on the prosecutor to look out for you? It is better to have a REALTOR you trust look out for your interests. That mean retaining a Buyer's agent.

It won't cost you anything. The selling broker will just split the commission with your buyer's agent.

[vanee]

Originally Posted by faabala

Would you go to court unrepresented and just depend on the prosecutor to look out for you?

Would you go to a used car lot unrepresented? Buyers do all the time. They might have an expert inspect the vehicle before purchasing it, but the same applies to houses.

It is better to have a REALTOR you trust look out for your interests. That mean retaining a Buyer's agent.

By buyer's agent, do you mean any realtor that we have confidence in other than the seller's realtor?

It won't cost you anything. The selling broker will just split the commission with your buyer's agent.

That helps to know. But the commission will be low even before it's split because the house doesn't cost a lot, and the seller's realtor is the one who's done the work of showing us the house. Would the realtors split the commission evenly, or would they possibly split it differently when the seller's realtor has done some of the buyer's realtor's work? I want to be fair to all parties involved.

Thanks for your help.

[gbone]

Originally Posted by vanee

Would you go to a used car lot unrepresented? Buyers do all the time. They might have an expert inspect the vehicle before purchasing it, but the same applies to houses.

By buyer's agent, do you mean any realtor that we have confidence in other than the seller's realtor?

That helps to know. But the commission will be low even before it's split because the house doesn't cost a lot, and the seller's realtor is the one who's done the work of showing us the house. Would the realtors split the commission evenly, or would they possibly split it differently when the seller's realtor has done some of the buyer's realtor's work? I want to be fair to all parties involved.

Thanks for your help.

Vanee, based on your response here I would highly recommend that you get a Realtor you have confidence in to represent you. There are not many similarities between buying a house and buying a used car. Showing the house is the least of the work that a good Realtor does and in fact, most of the work that is done to protect and represent you is done after you have decided to make an offer on a house. Good luck!

[Brandon Hoffman]

Buying a house, as previously stated, is nothing like buying a car. It actually is more akin to going to court or getting a doctor's opinions on a procedure. Don't waste too much time if you like the house or you might lose it but do go out and interview at least 3 agents to make sure you hire someone good.

I'd suggest at least asking "What services do you offer buyers?" and "What experience do you have helping buyers buy REO properties?" (Real estate owned properties)

[Bill Keegan]

Originally Posted by vanee

My husband and I saw a house we're interested in for sale in the area we'd like to live, contacted the realtor listed online for that house and had her show it to us, and are considering making an offer on the house. We don't have experience in buying a house, and I realize now that we probably should have contacted any realtor other than the one representing the seller. We like her and feel comfortable with her, but her job is to represent the seller's interests, not ours.

If we decide to make an offer on this house, should we find a realtor to represent us first? We've already found the house, so all we'd need is someone to help us through the offer/buying process and to make sure that we're getting a fair deal. If we don't get our own realtor, would the realtor representing the seller get double commission, would we save money, or how would it work?

If it makes any difference, we live in an area where housing prices are low to start with, and this house is a fixer-upper. The price will be well under $100,000, so the commission wouldn't be that much anyway. The house is currently unoccupied and (IIRC) bank-owned.

Thanks for your help.

It depends on you, on what you know and can do yourself, and on what you will be counting on the Realtor to do for you.
If you are counting on the agent to REPRESENT you, to negotiate on your behalf, to cousel you as to getting the best deal on this house, then you can't count on the listing agent to do that, because, as you pointed out, it's her job to represent the seller. If this is your situation (which I am guessing is true, based on yoru statement that you need the Realtor to be sure you are getting a fair deal), then you should be working with an agent who does not have conflicting allegiances. In otehr words, yoru own buyers agent.
If, however, you can do the evaluation yourself, if yiou can decide for yourself what is a fair deal, and how to negotiate, and ehen to push & when to not, and all yuou need the agent to do is guide you through the process - recommend inspectore, process the papers, keep things rolling smoothly as you go from offer to close - then you should be able to count on the listing agent. Especially since you say you like her & feel comfortable with her.
About the commission; chances are good that the contract she signed to list the house calls for her to split the commission with a buyers agent. Maybe half & half, maybe not. But probably close to it. In most cases, that is how your buyer agent will get paid, if you choose an agent other than the listing agent. If you don't have your own agent, and have the listing agent help you through the process, odds are that she will be entitled to keep the entire commission. BUT... ask. Many agents have agreements in place that say they will take a reduced commission if they don't have to share it with a buyers agent. It's most likely not going to be cut in half, but I wouldn't be surprised to see the total commission be three quarters if she doesn't have to share it. And if that's the case, you can use it in yrou negotiations, to in effect get the hoiuse for a little bit less.
Just be careful. Many people have gone the route of "I know what I'm doing and don't need an agent, so I'll do anything I can to save half a percent or a percent." And while many of those people got through their transactions perfectly satisfied, many of them, not knowing what they didn't know until it was too late, regretted it later. Stp back & ask yourself honestly, do you know everything you need to know, and can you manage this process properly? THEN decide on the sort of representation you need & want.

[vanee]

Thanks for the feedback, everyone.

If buyers should always have a representative who isn't the seller's agent (except for those who are very knowledgeable about the process), we have an interesting situation.

A year ago, a realtor showed us a couple of houses. We would've liked to work with him, but we decided to postpone our house hunting because of other circumstances. He's the realtor we'd call now to ask about representing us. Now, if we don't get the house we're looking at, there's another house in the area that would be next on our list. As with the first house, we found it ourselves by looking at online listings, and it's still for sale. Coincidentally, this second realtor represents the seller for this second house. I just found this out now.

Let's say that we have the second realtor (the one from last year) represent us in an offer on the first house, and for some reason, we end up not buying it. We then turn to the second house on the list and decide we like it. At this point, should we find yet another realtor, or maybe the first realtor (the seller's realtor for the house we're looking at now), to represent us in negotiations over the second house? Is this how the real estate dance works?

Also, does the real estate dance move any faster if only one realtor is involved? Houses aren't selling very fast, but I'd hate to see this first one slip away because someone else was in direct contact with the seller's agent and we weren't.

Thanks again.

[Brandon Hoffman]

Well, if you keep posting on here instead of acting on it, you will let it slip away. Call the Realtor if you trust him. Good agents are probably fine in dual agency, snakes watch out for themselves only. Transactions move no faster with one or 2 or 5 involved. If the agents are competent, the loan side takes longer than the RE side barring unforeseen hurdles. A bad agent can put a grinding halt to a deal. Just call the agent you like, go for it and quit wasting time.

[CAugust]

Originally Posted by vanee

My husband and I saw a house we're interested in for sale in the area we'd like to live, contacted the realtor listed online for that house and had her show it to us, and are considering making an offer on the house.
Thanks for your help.

wait a minute?? You already had this realtor show you the house???? Imho and that realtors, if you make an offer it should be threw her. She is the one who took the time to show you the house.

[TexasHorseLady]

Originally Posted by CAugust

wait a minute?? You already had this realtor show you the house???? Imho and that realtors, if you make an offer it should be threw her. She is the one who took the time to show you the house.

In this situation, many agents would refer the buyers to another agent, either in their firm (which means, in Texas, intermediary would still exist) or outside of it, to avoid the conflict of interest situation. So it's not as cut and dried as "they showed me the house, therefore I'm obligated to have them represent me even though their fiduciary responsibility is to the seller".