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What a stupid post. I know you'll say I'm a Realtor and I'm just trying to cover the profession but your post is really far from the truth. Yes, it probably does happen occasionally with inspectors but I'd think it's very rare. Lenders don't get a cut of the commission and agents don't get any of the lending fees so most agents just want a good, honest lender that's going to give a solid pre-qual and take care of the client. There's nothing worse than going through a transaction and wasting everyone's time and money to have the loan denied at the end.
Same with inspections. If the inspector does a bad job it makes me look bad. I want happy clients with solid homes so they refer their friends to me.
I won't report you for the personal insult.
My post was anything but stupid. You just don't like what it says.
All agents represent the seller in my state. Inspectors that regularly do business with certain brokers know that if they do something the seller or the broker doesn't like, they're liable to lose a certain stream of income. Maybe that affects the inspection, maybe not. But it sure doesn't affect the inspection when the inspector does not have a relationship with the broker.
Same thing with attorneys that the agents work with regularly. The two of them have a relationship. The buyer is just passing through. It is best to hire an attorney that does not have a relationship with the agents/brokers involved.
These companies/individuals will have charges for this and that, but they are really lower, one reason being that the cost is less because of the relationship, or the tasks are done for several sales simultaneously, like deliveries. But the buyer will be charged a full fee for a delivery, even though the agent got the delivery for three sales at the same time (one delivery fee). It's not a lot of money, but it's still a dishonest charge.
As for inspections, no one knows when an inspection is bad until maybe months or years later, when the bad wiring or low-quality cement subfloor becomes a problem. The buyer has a different interest in the inspection than the seller or the agents. It is best to hire a buyer's inspector or one's own inspector that doesn't have a relationship with that brokerage firm.
Same thing with appraisers, if the buyer has the option of choosing one.
I'm NOT a Realtor, and I agree it's a stupid post. But this entire thread began with a stupid post.
I won't report you for the insult, so don't worry. You're welcome.
No, my post was not stupid. It was good, honest advice to a buyer. Hire your own people who do not have a relationship with the agents. The agents represent the seller. Inspector, title company, appraiser, etc. Hire your own attorney, if you want to be represented as far as the legalities and contracts. Asking the agent's attorneys to clarify the meaning of language in a contract is fine, but don't expect him to give you the meaning of what that provision means to you, the buyer. Don't expect him to also say, "What this means down the road, Mr. Buyer, is that you COULD end up with...." or "What I normally request the language in this provision to say, for the buyer's protection, is ..."
I probably wouldn't hire an attorney to buy a house, though. But I would, and have, hired my own inspector. I don't recall if I had a choice of appraiser, or if I just went with the one provided. When I asked the agent if there was a chance the house wouldn't appraise for that amount, she said, "Don't worry. They get the contract and see the sales price, so they'll know to cover that amount." Sure enough, the house appraised for $1k more than the contract sales price. What a coincidence!
I even hired my own structural engineer to check out the foundation, since some remodeling work had been done, and it was an old house. Everything checked out fine.
My post was anything but stupid. You just don't like what it says.
All agents represent the seller in my state. Inspectors that regularly do business with certain brokers know that if they do something the seller or the broker doesn't like, they're liable to lose a certain stream of income. Maybe that affects the inspection, maybe not. But it sure doesn't affect the inspection when the inspector does not have a relationship with the broker.
Same thing with attorneys that the agents work with regularly. The two of them have a relationship. The buyer is just passing through. It is best to hire an attorney that does not have a relationship with the agents/brokers involved.
These companies/individuals will have charges for this and that, but they are really lower, one reason being that the cost is less because of the relationship, or the tasks are done for several sales simultaneously, like deliveries. But the buyer will be charged a full fee for a delivery, even though the agent got the delivery for three sales at the same time (one delivery fee). It's not a lot of money, but it's still a dishonest charge.
As for inspections, no one knows when an inspection is bad until maybe months or years later, when the bad wiring or low-quality cement subfloor becomes a problem. The buyer has a different interest in the inspection than the seller or the agents. It is best to hire a buyer's inspector or one's own inspector that doesn't have a relationship with that brokerage firm.
Same thing with appraisers, if the buyer has the option of choosing one.
As someone who has been slammed by the mods on several occasions for being blunt i will say that tecnically it was not a personal insult. He is not saying that you are stupid. You just posted somthing he thought was stupid. Two different things.
Here's an example. A large broker does business with title company A. Title company A sends paperwork to the broker regularly, combining the paperwork for several sales in one delivery. But Title Company A will charge the high-end delivery fee separately for each sale, getting recompensed (and then some) three times. The broker is fine with that, even the broker that "represents" the buyer.
In my state it is made clear in the paperwork that the agents represent the seller. Period. If a buyer wants his own agent, he has to pay a special fee and hire a "buyer's agent." This isn't for a particular sale. The buyer signs an agreement saying he'll pay that agent a certain amount no matter what house the buyer buys, and regardless whether that agent is involved.
Using an attorney with business connections with the seller's agent (all agents are seller's agents, unless it's a specific "buyer's agent" agreement) is not clearly an impartial attorney. That attorney is not likely to do anything not in the interests of his business associate, the seller's agent, and the agent's client, the seller. Maybe he will, maybe he won't. But to be sure, buyer should hire his own attorney. AND hire his own inspector.
That's the only way for the buyer to be sure the people he hires truly represent his interests.
Really? Are the title companies you deal with sending the paperwork by Pony Express? It's been years since I've received "paperwork" through anything but email. I attend all closings, so I do receive paperwork there.
Using an attorney with business connections with the seller's agent (all agents are seller's agents, unless it's a specific "buyer's agent" agreement) is not clearly an impartial attorney. That attorney is not likely to do anything not in the interests of his business associate, the seller's agent, and the agent's client, the seller. Maybe he will, maybe he won't. But to be sure, buyer should hire his own attorney.
That's the only way for the buyer to be sure the people he hires truly represent his interests.
I don't know what state you are in, and this may be true in your state. But in some states, including Arizona, you will not find an HONEST real estate attorney to review standard residential home purchase agreements. Why? Because it's unnecessary. The Realtors and Title Co use standard documents and handle everything. An HONEST attorney will tell a potential client, "No, you're wasting your money having me review this stuff and I won't take it." Ask me how I know.
If there us ANYTHING unusual in the transaction, then certainly an attorney is required. And uf the buyer can't understand what us in the contract after going thru it with their Realtor, then MAYBE, the buyer needs legal help - but maybe they just shouldn't be buying a house.
I don't know what state you are in, and this may be true in your state. But in some states, including Arizona, you will not find an HONEST real estate attorney to review standard residential home purchase agreements. Why? Because it's unnecessary. The Realtors and Title Co use standard documents and handle everything. An HONEST attorney will tell a potential client, "No, you're wasting your money having me review this stuff and I won't take it." Ask me how I know.
If there us ANYTHING unusual in the transaction, then certainly an attorney is required. And uf the buyer can't understand what us in the contract after going thru it with their Realtor, then MAYBE, the buyer needs legal help - but maybe they just shouldn't be buying a house.
Well, to be fair, Bee advised hiring an attorney in one post and then in the next post said she wouldn't hire one. Not sure if she's advocating for or against attorneys.
Please tell us which state does not recognize buyer agency. It's been around since the 1980's.
Buying property in any state is not like buying a stock or a plane ticket or a pair of shoes. If you don't have your own trusted advocate in the purchase of real property, you don't know what you don't know.
Did you remember to ask for the instruction manuals, past inspection reports, warranty information, copies of invoices for work completed, past survey, utility bills, etc. Did you agree to buy before your new loan was approved? Did you complete a walkthrough before closing?
I was at a house warming party last night for a pair of happy new owners when one of the guests told the story of "saving" $4,000 by using the listing broker. He went on to say he had to wait three days after the closing for the seller to moved out costing him $900 in hotel/food/storage bills, and then he had to have the place cleaned because "broom clean" wasn't good enough another $300. He had to have the carpets cleaned, another $400 and then wait a day for them to dry. The furnace went out a week later so he replace it and the ac unit for $3500. And then, when he had everyone's sympathy he said all agents were "money grubbing bloodsuckers." I walked away, not wanting to hear anymore. Later, he did thank me for helping his friends buy this house, he said "It was everything they wanted and more."
No one helped this guy get an inspection, or a home warranty, understand the inspection, appraisal, closing and possession process, or maybe have his own representation and negotiating the same price.
Yes. If you use a title company or lender recommended by the agent, there's a "you scratch my back, I'll scratch yours" thing going on. Watch the agent's face, when you say you'll be using another title co. or lender.
OTOH, they'll probably work to complete your paperwork asap, if they have a relationship with your agent.
As far as the contract, most laypersons wouldn't understand all the terms of a legal contract. If you need a lawyer to understand it, there's no need to also pay for an agent. Just buy the house yourself, and use your attorney to draw up the paperwork and explain the legalities to you. I don't know if you can view an MLS listed house w/o an agent, though. Possibly.
I disagree. I'm a realtor and will recommend several mortgage companies that do a good job ( preapproval actually means they are preapproved, close on time), and title companies that are on the ball and are ready to close when we are supposed to. It is illegal to receive kickbacks that aren't disclosed. I don't receive any kickbacks or favors from anyone I recommend. But I have had clients use other lenders and end up having the deal fall apart 3 days before closing, or delayed closings. And a title company that missed a lien on a title search, and one that accidentally put the seller paying for title policy. When in fact then contract showed buyer paying for it. Then at closing the buyer didn't have enough money to pay for it.
Agents recommend this companies that will get the home bought with as little stress to the buyer and seller as posdible.
I find the whole kickback discussion kind of pointless. I used the mortgage originator reccomended by my RE. I met with them and talked. I found a house and talked again, got some numbers and then finally went to closing. At closing the numbers where still the same and I signed. Now I do not care if the RE and the originater exchanged 10 dollars or 10 thousand dollars. As long as my payment was still what I was quoted I was happy. Trust me if a mystery number appeared I would have questioned it.
These companies/individuals will have charges for this and that, but they are really lower, one reason being that the cost is less because of the relationship, or the tasks are done for several sales simultaneously, like deliveries. But the buyer will be charged a full fee for a delivery, even though the agent got the delivery for three sales at the same time (one delivery fee). It's not a lot of money, but it's still a dishonest charge.
As for inspections, no one knows when an inspection is bad until maybe months or years later, when the bad wiring or low-quality cement subfloor becomes a problem. The buyer has a different interest in the inspection than the seller or the agents. It is best to hire a buyer's inspector or one's own inspector that doesn't have a relationship with that brokerage firm.
Same thing with appraisers, if the buyer has the option of choosing one.
YMMV, of course, but around here:
1. Real estate attorneys handle closings, here. NOTHING gets "delivered" to us, the agents, except an email with the settlement statement prior to closing. What "delivery charges" are you so hung up on? The attorney charges delivery fees for returning all signed paperwork to the lender. That's about it, and reasonable.
2. Your scenario with the buyer is why it is often recommended that a buyer have their own buyer's agent. A good inspector will take time to walk the property with the buyer to point out items that the buyer needs to be aware of, so the buyer can make a decision as to what is important and what isn't. That's why we give a buyer the names of several good inspectors when asked, not just "use this guy." For one thing, we don't want the liability. And for another thing -- I probably talked to 25-30 different inspectors last year. Over the last five years, I've probably run into well over 70-80 inspectors (a few more often than others). I think it's fair to say that I've probably talked to and had a chance to evaluate the work of more inspectors that my buyer, who would only be evaluating from a small pool of recommendations from Aunt Mary and their frat brother who just bought a house and whose brother in law is in construction and did his inspection for him. But NO inspector finds everything. They don't tear up carpets and tile to look at subflooring, and they don't tear out drywall to check wiring. The buyer's agent and the buyer ideally have the same goals -- the best house for the money the buyer can buy. Why on earth would I poison the beginning of a hopefully years-long relationship by suggesting shoddy inspectors? I don't want them buying a money pit, either. There's ALWAYS another house.
3. Around here, most buyers do not have the option of choosing an appraiser, if they are getting financing It's chosen by the lender, and with some lenders, they don't even hire the individual appraiser, they use a service that assigns appraisers independently.
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