need agent to look at houses? (Iona: lenders, buyer, contractors)

[nick is rulz]

most agents now are so desperate for a sale they'll feed you any line to get you into something. If you do go with one....do your homework. Theres one that posts here that seems reliable and trustworthy, but otherwise most of them I can do without.

[Globe199]

My wife and I are looking to buy a house in the next six months. The market is very screwy right now. I think it's fair to say that it definitely is NOT a buyer's market. The inventory is all messed up, because the only people selling are those who need to. So that leaves a lot of questionable homes for sale, and most of the properties we've seen are vacant; not necessarily foreclosed, but vacant nonetheless.

It's weird.

[nick is rulz]

its not a buyers market at all. Fundamentals are still horribly disconnected on average salary vs cost of housing. Rent is significantly cheaper. The properities that are for sale that havent been in foreclosure are just sitting thanks to stubborn homeowners who believe that are inflexible on dropping the price.

[Gruffalo]

Originally Posted by rmorton

Yes you can but its not a good idea. Do you go to court in the morning and then talk to your lawyer the next day...nuff said..

Although comparing agents to lawyers is a stretch because of the vast difference in education involved, fundamentally I agree with this analogy. You hire a lawyer because you only have a basic understanding of the legal system, and it's workings can have serious consequences for you. If you don't have a good understanding of agency (who represents whom in a real estate transaction) and the transaction process itself, then it would be wise to have someone represent you (or take a few hours and learn the process yourself).

Northa, generally it is NOT possible to look at a house that is listed in the MLS without getting an agent involved. It will take an agent to get access to the house and your contact with that agent just got them involved. If you go to an open house and do not inform the agent sitting the open house that you have other representation, the act of them letting you into the house can be sufficient for them to claim commission. It's called "procurring cause", meaning that their actions (their advertising, the event of the open house, and their contact with you) were what initiated the ultimate sale of the house (should you buy it). So if you come back to that house with another agent at a later date, you could be creating a mess. Also if you use agent A to view a house that is listed by agent B, and then later get a buyer's agent C to actually put an offer on the house for you, agent A could claim commission by procurring cause.

I agree that it is difficult to find an agent that meets your needs and I think going to open houses is a good way to find an agent (that's one of the main reasons agents hold them). Just be aware that your actions can have consequences. Agency has many gray areas. If you make contact with agents tell them specfically what the context of that contact is. Agents get "burned" a lot by buyers; most will appreciate your being up front with them.

[Gruffalo]

Originally Posted by nick is rulz

its not a buyers market at all. Fundamentals are still horribly disconnected on average salary vs cost of housing. Rent is significantly cheaper. The properities that are for sale that havent been in foreclosure are just sitting thanks to stubborn homeowners who believe that are inflexible on dropping the price.

I agree. I'm looking to buy in the next few months and I still think prices are high relative to rents and average income in the area. A recent article in Fortune compared home prices to rent in major markets and made predictions about where they felt these would go over the next five years. They didn't think Minneapolis was as out of whack as many other places, but still predicted that home prices would be down over 5 years.

Real estate: Buy, sell, or hold? - Nov. 7, 2007

I'm looking in the suburbs and I'd feel safe paying about 90% of the average "reasonable" listing price right now. (You're right that some sellers still think it's 2005 though) If I can't get that I may rent awhile because it does seem like many of the better properties aren't being put on market right now.

[Jeanie Hoholik]

I have spent a lot of time with my sellers to educate them on what to expect in the current market place. If I go on a listing appointment and the potential seller doesn't like (or believe) what I have to say, I move on. There is no sense in spending time and money to market a property that is over priced. I'm not that greedy.

[Jeanie Hoholik]

Originally Posted by northa

Is it ever possible to look at some houses for sale without getting involved with any agents initially?

The buyers don't normally pay the agent, so why not hire a good agent who will handle the details from start to finish? There's a lot more to buying a home than just going out and looking at them.

[Ben Around]

Contrary to what those in the "industry" say, you don't need an agent to buy a house (nor to sell one). Paying a good real estate lawyer for his/her services to protect your interests is lots cheaper than paying a real estate commission.

When we bought our present home, we had seen it at an open house. It was WAY overpriced, so we forgot about it. A few weeks later, I drove by it and noticed the for sale sign was gone. Here in the Twin Cities, that's a good sign the house has been taken off the market, not sold. (When houses are sold by realtors around here, they leave the for sale sign up for several weeks with a "SOLD" sign on it, I suppose to proclaim their selling prowess to all who see it.)

I wrote a letter to the owner of the house, introduced myself and asked if he still wanted to sell, and if he did, to contact me. He called me within a day. He told me that his 6 month contract with the realtor had expired, so he was giving up for a few months, since he had already dropped the price (the one that we determined was too high). He checked with his lawyer and found out he was not obligated to the realtor if he sold to me, since the contract had expired.

To make a long story short, we immediately knocked 7 percent off the asking price, then negotiated from there. At the closing, we each brought our own attorney. We both walked away from the closing feeling we had gotten a good deal!

[MnMomma]

If you aren't familiar with the local market and the process of buying a home then you should use an agent. I think there are lots of people who do just fine without an agent, both buying and selling.

We bought our first home in Minneapolis somewhat on a whim (we hadn't planned on even looking for about 6 more months). We stopped in during an open house and made an offer, with no agent, later that day. The seller's didn't want us to be "unattended" for fear that something would fall through so we agreed to dual representation with the selling agent. It worked well for all. We ended up with a lower sale price because the sellers didn't have to pay full commission (their agent contract specified that the commission rate would be just 3% if their agent found the buyer as well).

When our current home came on the market I contacted the selling agent directly. While she wasn't very friendly, she did agree to show us the house. I had a horrible (and correct) feeling about her so I told her upfront that we were not comfortable with dual representation in this situation. I found an agent to represent us a few days later. All worked out fine.

I would not recommend that you contact sellers agents directly if you are just out looking--it's not fair to them. If you want to shop, get your own agent or stick with open houses. If you have a very targeted search and a house or two pop up that look very promising, I think it's fine to contact the listing agent directly--it could save you money (the sellers may be able to walk away with the same amount of $ because the agent commission may be lower). Hope that makes sense.

[fitra]

Originally Posted by nick is rulz

Ive looked at houses and flat out told agents to not bother calling me because they'll hear from me first if Im interested. I usually repeat that and tell them that calling me first is a guarantee I will not use their service. They have never harassed me when Im blunt about it.

Wow Nick is rulz...you are awesome! You have such great responses.