Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I’m in the process of selecting a real estate agent for our first home purchase. I’ve searched the forums and couldn’t find anything on this.
First I see “get an accredited buyers rep”. Ok, fine. Then someone told me to get an exclusive buyers agent because you don’t want to get into a dual agent situation. I’ve also seen people say that getting an agent who represents buyers and sellers gets you a more well rounded agent who understands both sides.
The area I’m looking at has one exclusive buyers agent, but I haven’t contacted her yet. I’ve narrowed it down to two agents before getting into this exclusive buyers agent business. Both seem really good. Both have good recommendations, both are accredited buyers reps and certified residential specialists. One has 30% buyers for clients and 70% sellers. The other is split evenly. I was leaning toward the 70/30 one.
Does an exclusive buyers agent make a difference? Am I over analyzing this?
Yes, you're overanalysing. No you don't need a buyer's agent. The ONLY thing that an agent really does is sell you the house. No matter how personable, apparently knowledgable, or whatever, the agent appears to be, the agent has only one goal, and that is to get you to buy a house, so they can get their commission. The only thing that having your own agent does is to leave less room for bargaining - because if you let the listing agent sell you the house, and the negotiating gets tough, the listing agent can cut their commisssion a little to make the deal go, since they're getting double commission.
Don't waste your time figuring out how to choose an agent. Spend all that time going to see a hundred houses that seem to fit your criteria. Go to open houses. Peruse realtor.com and zillow, and contact listing agents and let them show it to you. Ask everyone you meet to tell you about the mistakes they've made in buying their first home. Educate yourselves. Don't expect an agent to look out for your best interest, because they cannot be depended upon to do this. When it comes down to it, you and your real estate attorney have to watch out for you, not the agent.
The only time that I would work with an agent is if I were relocating to an area far away, and I needed someone to set up the showings and show me twenty houses in a weekend, so that I could make a choice as an out of town buyer. Or if I were entering a completely new type of real estate, like commercial, and didn't know anything, and needed an agent to show me all the stuff available, that I couldn't find out about myself. But nowadays, with realtor.com and zillow and other sites, and town assessors websites, and flood plain maps, you can get hold of tons of information yourself.
Yes, you're overanalysing. No you don't need a buyer's agent. The ONLY thing that an agent really does is sell you the house. No matter how personable, apparently knowledgable, or whatever, the agent appears to be, the agent has only one goal, and that is to get you to buy a house, so they can get their commission. The only thing that having your own agent does is to leave less room for bargaining - because if you let the listing agent sell you the house, and the negotiating gets tough, the listing agent can cut their commisssion a little to make the deal go, since they're getting double commission.
Don't waste your time figuring out how to choose an agent. Spend all that time going to see a hundred houses that seem to fit your criteria. Go to open houses. Peruse realtor.com and zillow, and contact listing agents and let them show it to you. Ask everyone you meet to tell you about the mistakes they've made in buying their first home. Educate yourselves. Don't expect an agent to look out for your best interest, because they cannot be depended upon to do this. When it comes down to it, you and your real estate attorney have to watch out for you, not the agent.
The only time that I would work with an agent is if I were relocating to an area far away, and I needed someone to set up the showings and show me twenty houses in a weekend, so that I could make a choice as an out of town buyer. Or if I were entering a completely new type of real estate, like commercial, and didn't know anything, and needed an agent to show me all the stuff available, that I couldn't find out about myself. But nowadays, with realtor.com and zillow and other sites, and town assessors websites, and flood plain maps, you can get hold of tons of information yourself.
Thanks for the post, but that doesn’t sound right (granted I’m new to all this). Everything I’ve read says that a seller’s agent represents the seller and won’t have my best interests at heart.
Using Marc’s attorney analogy, each side needs representation. I actually deal with attorneys and while they do want to complete the deal, they ultimately represent their client. They will get the deal done at my expense unless I really know what I’m doing or have someone competent representating me. I simply don’t know enough about buying a house to do it myself. It makes sense to me to have an agent.
So, in moving to the Charlotte area, bear in mind...
In NC, unless you engage a buyer's agent in writing to represent your interests in a fiduciary role, legally, the agent is representing the seller as their agent.
Legally, the agent cannot represent you unless you have that documented agreement.
As confirmed via the document at this link, from the NC Real Estate Commission:
Thanks for the post, but that doesn’t sound right (granted I’m new to all this). Everything I’ve read says that a seller’s agent represents the seller and won’t have my best interests at heart.
Using Marc’s attorney analogy, each side needs representation. I actually deal with attorneys and while they do want to complete the deal, they ultimately represent their client. They will get the deal done at my expense unless I really know what I’m doing or have someone competent representating me. I simply don’t know enough about buying a house to do it myself. It makes sense to me to have an agent.
You are on the right path.
This misleading refrain is common here, unfortunately.
Any good agent is willing to walk away from a bad deal for a client, whether the client is a buyer or seller.
Yes, you're overanalysing. No you don't need a buyer's agent. The ONLY thing that an agent really does is sell you the house. No matter how personable, apparently knowledgable, or whatever, the agent appears to be, the agent has only one goal, and that is to get you to buy a house, so they can get their commission. The only thing that having your own agent does is to leave less room for bargaining - because if you let the listing agent sell you the house, and the negotiating gets tough, the listing agent can cut their commisssion a little to make the deal go, since they're getting double commission.
Don't waste your time figuring out how to choose an agent. Spend all that time going to see a hundred houses that seem to fit your criteria. Go to open houses. Peruse realtor.com and zillow, and contact listing agents and let them show it to you. Ask everyone you meet to tell you about the mistakes they've made in buying their first home. Educate yourselves. Don't expect an agent to look out for your best interest, because they cannot be depended upon to do this. When it comes down to it, you and your real estate attorney have to watch out for you, not the agent.
The only time that I would work with an agent is if I were relocating to an area far away, and I needed someone to set up the showings and show me twenty houses in a weekend, so that I could make a choice as an out of town buyer. Or if I were entering a completely new type of real estate, like commercial, and didn't know anything, and needed an agent to show me all the stuff available, that I couldn't find out about myself. But nowadays, with realtor.com and zillow and other sites, and town assessors websites, and flood plain maps, you can get hold of tons of information yourself.
Quote:
Originally Posted by Mike930
Thanks for the post, but that doesn’t sound right (granted I’m new to all this). Everything I’ve read says that a seller’s agent represents the seller and won’t have my best interests at heart.
Using Marc’s attorney analogy, each side needs representation. I actually deal with attorneys and while they do want to complete the deal, they ultimately represent their client. They will get the deal done at my expense unless I really know what I’m doing or have someone competent representating me. I simply don’t know enough about buying a house to do it myself. It makes sense to me to have an agent.
Using a buyer's agent is best for some buyers but not all. Buyers need to decide according to their own situation.
However, you need to have all the facts and understand how it works.
1. Buyer's agents are not like an attorney protecting your interests. People who get paid with sales commission are sales people, not advisors. You can't be both. Sales commission, no matter the industry, was invented to incentivize closing deals.
2. A buyer's agent is paid with the sales commission that the seller's agent agrees to split with him. The buyer's agent and seller's agent are selling the house together in a cooperative sales model. This is why the seller's agent agrees to split his commission - because in the end, it helps him sell the house.
3. Agents don't get paid a dime until/unless the deal is done. This means that they have a big incentive to close deals and close sooner rather than later, get paid and reduce risk that the client will go away.
4. Buyers are often led to believe that the buyer's agent is free to them. You should think about what services you need and what value you will get and avoid being sucked in by vague notions of 'protecting your interests' or fear that nobody will protect your interests without an agent. Buyer's agent commission on a modest house is about $10k. That's a bathroom remodel, new roof, or other major project.
it's in a market that they're not familiar with the laws and logistics, having never bought a house in NC.
if he's buying in NC as part of the move from San Diego, then it would be very logistically challenging to work through the transaction from afar.
If he's moving first and renting, and then buying in a year, then the 3rd hurdle is cleared.
How does the above match with your situation, Mike930?
If you're moving for a job, I'd ask your employer if they have an agent they recommend, and speak with them too. They may be a better choice than your research thus far, they may not.
it's in a market that they're not familiar with the laws and logistics, having never bought a house in NC.
if he's buying in NC as part of the move from San Diego, then it would be very logistically challenging to work through the transaction from afar.
If he's moving first and renting, and then buying in a year, then the 3rd hurdle is cleared.
How does the above match with your situation, Mike930?
If you're moving for a job, I'd ask your employer if they have an agent they recommend, and speak with them too. They may be a better choice than your research thus far, they may not.
We intend to move and rent an apartment first. We’ll start looking after we’re there. I don’t think it’s smart to buy a house long distance without knowing the neighborhoods or the area that well. I’ve visited before, but not enough to make an informed decision about a purchase this big.
Good idea about asking my employer. This is a voluntary move on my part, but they could still help with referrals.
So, in moving to the Charlotte area, bear in mind...
In NC, unless you engage a buyer's agent in writing to represent your interests in a fiduciary role, legally, the agent is representing the seller as their agent.
Legally, the agent cannot represent you unless you have that documented agreement.
As confirmed via the document at this link, from the NC Real Estate Commission:
Using a buyer's agent is best for some buyers but not all. Buyers need to decide according to their own situation.
However, you need to have all the facts and understand how it works.
1. Buyer's agents are not like an attorney protecting your interests. People who get paid with sales commission are sales people, not advisors. You can't be both. Sales commission, no matter the industry, was invented to incentivize closing deals.
2. A buyer's agent is paid with the sales commission that the seller's agent agrees to split with him. The buyer's agent and seller's agent are selling the house together in a cooperative sales model. This is why the seller's agent agrees to split his commission - because in the end, it helps him sell the house.
3. Agents don't get paid a dime until/unless the deal is done. This means that they have a big incentive to close deals and close sooner rather than later, get paid and reduce risk that the client will go away.
4. Buyers are often led to believe that the buyer's agent is free to them. You should think about what services you need and what value you will get and avoid being sucked in by vague notions of 'protecting your interests' or fear that nobody will protect your interests without an agent. Buyer's agent commission on a modest house is about $10k. That's a bathroom remodel, new roof, or other major project.
I understand most of what you said but you lost me at the $10k being enough for a major project. If I don’t have an agent, the seller would just keep the whole commission, right? I don’t get any of it.
While I understand that they’re going to want the sale, I think you can weed out the pushy ones from the good ones. Looking at reviews and getting recommendations, while not perfect, is a good place to start I would think.
When I started speaking to realtors I found some were telling me it’s no problem to buy long distance and said they had clients do it all the time. Others said to wait and rent first so I could get the lay of the land. The one I’m leaning toward told me it’s not a good idea to buy long distance. You may end up with a nice house but then you could get there and find that there was another neighborhood that suited you better.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
