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"Buyer brokers are sometimes too focused on closing the sale and getting that commission," says Max Gordon, an Overland Park, Kan.-based real-estate broker and attorney, so it's often in their best interest to see you pay as high a price as possible.
Though you may not save the commission amount, you can save like I did by doing better diligence with the numbers that your agent may miss or just be too unconcerned about. My agent simply stood by with their fingers crossed as I negotiated with the builder myself. I got a better price by telling the builder he can keep the (free) washer and dryer and all the other toys and give me a lower price. Think of what I saved not financing the washer and dryer over 15 years.
Buyers' agents with with BUYERS. These are people who are GOING TO BUY A HOUSE. So of course a buyers' agent is focused on a successful transaction. Everyone wins with a closed sale.
However, trust me when I tell you, as a former realtor in Texas, that $10,000 or even $30,000 difference in price doesn't make that big a difference to the agent, not in the process or in the commission. Think about it. How much is the commission on $10,000 dollars to a buyers' agent? They are usually getting 2 percent or so on that - that's $200 or so (they have to split THEIR commission with THEIR broker - often there are two brokers and two agents splitting a 5 or 6 percent commission). It's much more advantageous to the buyers' realtor to help their customer get the best deal possible - and get referrals for future business.
Sounds like you got a bad realtor - or possibly that your basic distrust of realtors affected your working relationship with your realtor. I've seen both scenarios.
My advice is to research realtors in your market before you even start looking. Meet with your lender first, to be sure you are shopping in a realistic price range. Make a list of the most important elements to you - your priorities for your future home. Interview two or three realtors and choose the one you click with the best, who also has the best reputation of course. Be sure you go ahead and show them the pre approval letter from your lender - this is an indicator that you are serious. You would not believe how many people call realtors just because they love looking at houses for a hobby or decorating ideas - or they are nosy neighbors.
Be very open about your expectations on the front end - how much time you think you will need, whether or not you are familiar with the area, whether or not you are willing to drive by and eliminate homes before scheduling showings, things that would be an absolute turnoff to you, and that you expect to review your expected closing costs in detail well before the closing.
Give the realtor a realistic time frame and don't waste your time or theirs looking at homes that don't fit your priority list. If you realize that you and your buyers' agent aren't clicking, tell them this and give them one more chance. Then move on.
You should receive a closing cost estimate document within a day or two of going under contract. Review it with your realtor before closing. Be sure you tell your realtor you will be expecting this courtesy - it's not required but I highly recommend it.
The OP may have a problem on their hands though. Apparently they have already found a house - without a buyers' agent. Sometimes it is very difficult to interject a buyers' agent into the mix now - since the selling agent has already been contacted via the buyer rather than an agent. Legally speaking, the seller's agent/broker can refuse to work with an agent who slides in at the last minute - whose marketing and work has not produced the sale or even the interest in the property at all.
They may agree to a smaller percentage of the commission going to a buyers' agent however - or the buyer may determine it's best to pay a smallish fee out of their own pocket. I've done that before. I considered $1000-$1500 to be a fair price for my services as a buyers' agent hired after the house was already found by the buyer, and I did several of these transactions which went very smoothly.
Like others have said, of course there are good realtors and bad realtors. I would never work with one who didn't do this full time, and make a good living doing so.
I have nothing to gain by touting the profession - like I said, I no longer practice real estate. But we are going to be buying a home next year (again) and we will be using a buyers' agent - the same local agent who we used last time we bought a house. She's worth every penny - especially considering that we aren't even paying her! Even if we were, I'd use her and pay her well.
I do lead based paint inspections for buyers. The buyer's agent always tells them to just assume they have lead based paint. However, none of the buyer's agents ... say, just assume you also have lead hazards all over the place (like the lead disclosure discusses).
I would say that around 80% to 90% of homes I test have toxic lead dust on the floors, soil and many have hazards from the bathtubs leaching lead. Buyer agents know this, but if they bring it up ... the deal may not go through.
However, if you are looking for a home, use an agent. Just realize that many of them aren't on your side. If you have already found a home on your own ... less need for a buyer's agent.
my opinion
Last edited by dallasdean; 07-21-2012 at 11:39 AM..
If you've already found a home, at LEAST have a real estate attorney review your documents. You will have to pay the attorney out of your own pocket but it will be the best money you've ever spent.
If you've already found a home, at LEAST have a real estate attorney review your documents. You will have to pay the attorney out of your own pocket but it will be the best money you've ever spent.
My dentist had to put his house for sale right after they bought it because house was in Frisco ISD and realtor assumed that it is PISD just because it's located in Plano. Their son was about start 12th grade and they just couldn't change school at that point. A friend is trying to resell her house in Allen after three months because her agent who lived two houses away hid the fact that her next door neighbors have 5 sons who drive old trucks and motorcycles and start coming home after midnight so neighbors have to be startled five times every night during their sleep. Late night parties were additional noise almost every weekend. Even buyer's agent's wife confessed that it was a known issue and reason for previous owner to sell the property.
I do lead based paint inspections for buyers. The buyer's agent always tells them to just assume they have lead based paint. However, none of the buyer's agents ... say, just assume you also have lead hazards all over the place (like the lead disclosure discusses).
I would say that around 80% to 90% of homes I test have toxic lead dust on the floors, soil and many have hazards from the bathtubs leaching lead. Buyer agents know this, but if they bring it up ... the deal may not go through.
However, if you are looking for a home, use an agent. Just realize that many of them aren't on your side. If you have already found a home on your own ... less need for a buyer's agent.
my opinion
You are misleading people so bad. When was lead paint, leaded gas, lead in products outlawed ? I believe it was 1976.
Lead has not been used since then and anything built after does not have lead. Lead paint was the standard prior to that date which is why you can almost assume every home built prior to 1976 has lead paint. Lead paint is a great paint and especially good at preventing mold. It just has lead.
So, yes we agents say you can assume any old home can have lead paint. But there has not been a home built in the last 36 years with lead paint.
You make it sound like it's a major common issue with every home. I'd guess 80% of the houses in DFW are lead free since most of the growth here has been in the last 30 years.
You are misleading people so bad. When was lead paint, leaded gas, lead in products outlawed ? I believe it was 1976.
Lead has not been used since then and anything built after does not have lead. Lead paint was the standard prior to that date which is why you can almost assume every home built prior to 1976 has lead paint. Lead paint is a great paint and especially good at preventing mold. It just has lead.
So, yes we agents say you can assume any old home can have lead paint. But there has not been a home built in the last 36 years with lead paint.
You make it sound like it's a major common issue with every home. I'd guess 80% of the houses in DFW are lead free since most of the growth here has been in the last 30 years.
You're a real estate agent and don't know the date that you are to make sure a lead disclosure is given to buyers? Of course I'm not talking about a 2010 built home. Use a little common sense.
Plus, you are also wrong in leaded gasoline and lead in products. You can go into Home Depot or Lowe's and buy brand new tile that has lead in it. This also goes for bathtubs. So does lipstick, apple juice, certain spices and the list keeps going.
However, we're just talking about homes with lead based paint.
So, yes we agents say you can assume any old home can have lead paint.
Old homes with lead paint usually have lead dust ... do you also tell them to assume this?
Do you tell your client that if they "assume" they have lead paint, it will cost them a lot more for home improvement projects, repairs and maintenance?
Do you warn your clients if they "assume" and buy the house ... then when they sell it in the future and the buyer does a lead test and finds it ... it will devalue the home?
Not trying to change the topic to lead based paint ... just trying to point out that buyer agents aren't really trying to protect their clients in many cases. Many times, they are just after the fast sell and the commission check.
You're a real estate agent and don't know the date that you are to make sure a lead disclosure is given to buyers?
However, we're just talking about homes with lead based paint.
You're right, I threw that out there quickly and it was 1978 which is still many years ago. Regardless, lead is not an issue in homes built after that date.
But since you are a Lead Inspector I can see where you would like everyone who buys a home to waste their money getting it tested for lead.
You're right, I threw that out there quickly and it was 1978 which is still many years ago. Regardless, lead is not an issue in homes built after that date.
But since you are a Lead Inspector I can see where you would like everyone who buys a home to waste their money getting it tested for lead.
Do you test for Asbestos also ?
and Radon.........LOL
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