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Old 06-26-2014, 10:35 AM
 
5,622 posts, read 6,404,848 times
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Quote:
Originally Posted by DandiDay View Post
Sugarbear24,
I have mixed emotions in using a realtor, as their driving force ultimately, is their commission. Also, most don't know much about the building process, if you're leaning towards buying a lot to build upon.
Now, of course, IF the realtor agrees to really monitor the build, IF the builder does agree to give you cuts if you have a realtor, and IF the realtor does reduce his/her commission or otherwise gives you a portion, then yes, I'd go with one.

Now, I don't want to hear from any upset realtors out there...I'm speaking from my OWN personal experience.

I've used a realtor only once, in about 9 buying/selling transactions. Perhaps she was a mediocre one...Anyway, I did most of the negotiation of the price, and even wrote a letter to the seller justifying my position and rationale. All the realtor did was provide the paperwork and arranged for a few appointments while we house-searched. In any event, her work and time did not, in any way, justify the 14K commission. At most, she spent 2-3 hours total with us.

For subsequent house-hunting, I worked without a buyer's agent, and approached each selling agent individually.

I was usually able to work out a reduced commission deal, thus both getting the price I wanted to pay, as well as it lessening the cost to the seller (via paying 3% instead of 6% if I had a realtor representing me!) The listing agent still received about 3% commission. A win-win for everyone!

Ditto for the sales. In fact, most recently, 3 realtors wanted to low-ball my selling price by 25K, just to get the house to sell!

I rejected their approach, did the advertising and listing myself through a one-time fee brokerage, and sold my house at my asking price!
So, I saved the original 25K, plus their commission of 24K, thus saving/making 49K!!!

That savings, to me, was worth not having a realtor. However, I did have a real estate lawyer who provided the paperwork and represented my interests...only cost me $1,500.

At the end of the day, it all depends what you're paying for. If a realtor will truly represent you and your interests, and will be active in checking the building process (assuming the realtor knows about the building process!), then by all means, go for it!
I don't know if there are any other professionals you could hire to oversee your interests...perhaps a very good house inspector? They could check things along the way for you as well! I'd do that instead of a realtor.
~DD
Like you, I bought my house without a realtor but I don't reccomend this route for most people. Most people need someone to hold their hand through the process and make sure they don't slip. Just how it is and that is how they get their hefty comission.

It is like car brakes or changing oil. It is really not that hard for most people to do but would rather pay someone to do all the work.
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Old 06-26-2014, 11:01 AM
 
Location: East Coast
673 posts, read 575,632 times
Reputation: 648
Very true, Azure110. There may be instances where people do need the assistance of a realtor - especially if they can't spend the time, don't understand the process, or otherwise are too busy to do the work involved.

I wish that one could actually pay a "fee for service" instead of commissions...this seems to be a more fair approach for all concerned. Weeeellllll, perhaps not the realtor, who would lose thousands or tens of thousands on a single transaction!

It just doesn't seem right that, for a similar amount of work, they would get vastly different commissions on a $100K home versus a 500K home!!!
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