working with a realtor when buying (for sale by owner, real estate, apartments)

[LightningMcQueen]

What do I gain if I work with an agent when I'm buying? If it matters, let's say I'm looking at 2 bdrm co-ops in the lower Westchester.

I pretty much know where the co-ops are, so I don't need a realtor to find me one. In fact, with all the real estate websites out there, searching for properties is easy. If I find something I like, I'll just call up the seller's agent and see the unit. Also, unless I'm buying out of state or across the country, I can do research on near by towns on my own. Lastly, unless, the realtor knows of properties before they hit the market and he can give me some inside deal, I don't see how a realtor adds values here.

The one area where I can see a realtor adding value is when negotiating a price, but I can see myself doing that on my own as well, especially in a buyer's market. Actually, I wouldn't even try to negoitate. With the abundance of units, I would just put in a reasonable bid and if it gets accpted, great, if not, I'm not sweating it. So, if I'm taking this kind of an approach, what value is a realtor going to add.

In fact, I would think working with a realtor might be a liability because he/she is going have to get paid from the seller. If I buy without an agent, the selling agent doesn't have to split the commission and wouldn't that give more flexibilty to the deal?

Is my thinking flawed or naive?

[havoc315]

Yes, you should use a realtor. I am not a huge fan of realtors. There are a lot of bad agents who are basically used-car salesmen. But a good agent can bring real value, and even a bad agent brings some value.

First off, it is very inconvenient to schedule showings yourself, going through different selling agents. If there are 5 apartments you want to see, you may have to schedule 5 appointments spread over a few days. But if you use your own agent, they can show you all 5 apartments in one stretch.

Secondly, even a fair agent should provide you with information that is difficult to gather on your own. For example, a realtor can tell you the actual selling price of apartments sold recently in the building, tell you how long a unit has been on the market, etc.

Finally, a good agent might actually have some real insight. (Might notice flaws in the unit, might have some experience with the co-op board)

[NJGirl12]

In my experience, seller's agents are not particularly good about showing their listings other than at open houses. So at best a good agent may add some value, as mentioned in previous post - but in most cases they are also necessary if you are serious about buying because beyond time consuming, you might not even be able to see the listings w/o an agent.

[bmwguydc]

And, don't look for a selling agent to "contribute" to the deal by not paying a commission split. Some may do this in a limited capacity, but only if the deal is in danger of falling apart. As a general rule, they will not say that since there's only one agent involved (who represents only the seller btw, even if they sell to you) that they will take half the commission, and if they do so it will revert to the seller in the cases where they do take the reduction. The seller may not pass it along to you at all, and many might be offended if one were to suggest that the price had wiggle room based upon the non-split commission.

[LightningMcQueen]

Thank you all for your various inputs.

[ponytrekker]

Originally Posted by LightningMcQueen

Is my thinking flawed or naive?

Heck no. Your best bet is to cut realtors out of the equation totally by contacting buildings or owners directly for properties not listed with agents. In this market realtors add no value to the equation and can stand in the way.

[LightningMcQueen]

Originally Posted by ponytrekker

Heck no. Your best bet is to cut realtors out of the equation totally by contacting buildings or owners directly for properties not listed with agents. In this market realtors add no value to the equation and can stand in the way.

That was my thinking, but others seem to think that realtors can add value, at the minimum in seeing the properties. But, I plan on going it alone and see how it goes. If it staggers, then I'll seek someone out.

[westchester]

if you use a buyers broker, someone who just works with buyers and they have all the expierence that goes with being a good broker , and they are going to give you all this knowledge free of charge to you why would you not want to use them.............just cause it is a slow market! that is probably one of the dumbest reasons ive ever heard........

[havoc315]

One legitimate point is yes ---Realtors will not show you properties that are "for sale by owner.". Such properties also will not appear on most real estate web sites. Basically, you need to rely on classified ads and do the leg work yourself. Even if you are working with a realtor for other properties, it could be worthwhile to explore fsbo properties as well.

[MiriamB]

You are a bit naive and perhaps have not bought or sold any Real Estate. Finding properties is really not all there is to it. First of all if you find a property on the internet and call the seller's agent you are not being represented in the deal. The seller's agent is there to get as much money for the seller as possible and protect the seller's interests. Secondly co-op's are not real property and the comparables are not in the public domain so figuring out what a reasonable offer would be is not possible. The seller's agent shouldn't provide comparables to help you determine a lower price. You do not save any money. The seller has agreed to pay a certain commission which they are obligated to pay whether is one agent or two agents. It isn't just negotiating but pulling the deal together and making sure that you meet of the co-op criteria for buyer's. It is insuring that the process moves forward between the attorney's, the banks, the co-op management company. This is not as simple as you might think.