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I recently sold my house without a Realtor and it was a fairly easy thing to do. The legal review of the contract is the most valuable thing an agent does for you, but a lawyer would do that for a flat fee.
The entire structure of realtor compensation is designed for an antiquated system, assuming a monopoly on information that no longer exists.
Realtors love to quote bogus numbers like "I get my clients 11% more than market." Well... then great! Buy my house for market and resell it for your 11% profit! "Um..."
All that being said, and with the clear position that Realtors are paid way too much for a group that is clearly colluding in a way no other industry would be allowed to do. There is value in Realtors. Maybe not 6% value, but value. A good Realtor is very good at helping you figure out what your house is really worth. This "appraisal" type service could probably also be done by an appraiser, but Realtors tend to have a better understanding of the dynamics at play.
If I was selling a house again, I would just list it on Zillow again. If I was buying a house again, I wouldn't use a Realtor, and I would do the footwork myself and hire an attorney to review the paperwork.
One thing to be sure to do though. I to tell the sellers Realtor that you want a 3% "rebate" check from him in exchange for not having a Realtor. Otherwise he will just keep the whole 6%. If he says no, tell him that it sounds a lot like he is not doing what is in his client's best interest and instead doing what is in his own best interest.
Let me say first of all, I am no expert and not an agent but in my times of buying and selling, it seems to me the real value is in the price negotiation and terms of the sale.
This is a great point that I kinda ignored. Realtors often have really good advice on how to proceed with a negotiation.
Yes I am a first time homebuyer. I have been looking at a lot of fannie mae, freddie mac, and hud type homes . I want to find one in a first look period open only to first time homebuyers , that will allow me to have first chance at them before the investors get them. The ones past first look are either already taken or are in really bad shape and I can't afford to fix them .
What does a realtor bring to this that really helps me beyond what a home inspector and real estate attorney can do ?
Well, your agent should be getting information from the listing agents for you. You have a very bad agent if you are doing all of the work. I've never had a buyer that had to call listing agents. At most they sent me addresses they wanted to see, but most of the time I did the searching.
I recently sold my house without a Realtor and it was a fairly easy thing to do. The legal review of the contract is the most valuable thing an agent does for you, but a lawyer would do that for a flat fee.
The entire structure of realtor compensation is designed for an antiquated system, assuming a monopoly on information that no longer exists.
Realtors love to quote bogus numbers like "I get my clients 11% more than market." Well... then great! Buy my house for market and resell it for your 11% profit! "Um..."
All that being said, and with the clear position that Realtors are paid way too much for a group that is clearly colluding in a way no other industry would be allowed to do. There is value in Realtors. Maybe not 6% value, but value. A good Realtor is very good at helping you figure out what your house is really worth. This "appraisal" type service could probably also be done by an appraiser, but Realtors tend to have a better understanding of the dynamics at play.
If I was selling a house again, I would just list it on Zillow again. If I was buying a house again, I wouldn't use a Realtor, and I would do the footwork myself and hire an attorney to review the paperwork.
One thing to be sure to do though. I to tell the sellers Realtor that you want a 3% "rebate" check from him in exchange for not having a Realtor. Otherwise he will just keep the whole 6%. If he says no, tell him that it sounds a lot like he is not doing what is in his client's best interest and instead doing what is in his own best interest.
This very well stated. I don't think commissioned sales people are qualified to provide legal advice. An educated local RE lawyer does not have a financial interest in the outcome so, especially for a new buyer, their opinion is well worth their cost. Why would a client have the sales person explain only what they want you to know?
You are so correct, as evidenced by so many other threads, about the realtor's compensation system which will only be revised when the public stops giving away its equity. For a new buyer, I would like to add that you should always use an independent inspector who is not recommended by the sales person.
I recently sold my house without a Realtor and it was a fairly easy thing to do. The legal review of the contract is the most valuable thing an agent does for you, but a lawyer would do that for a flat fee.
The entire structure of realtor compensation is designed for an antiquated system, assuming a monopoly on information that no longer exists.
Realtors love to quote bogus numbers like "I get my clients 11% more than market." Well... then great! Buy my house for market and resell it for your 11% profit! "Um..."
All that being said, and with the clear position that Realtors are paid way too much for a group that is clearly colluding in a way no other industry would be allowed to do. There is value in Realtors. Maybe not 6% value, but value. A good Realtor is very good at helping you figure out what your house is really worth. This "appraisal" type service could probably also be done by an appraiser, but Realtors tend to have a better understanding of the dynamics at play.
If I was selling a house again, I would just list it on Zillow again. If I was buying a house again, I wouldn't use a Realtor, and I would do the footwork myself and hire an attorney to review the paperwork.
One thing to be sure to do though. I to tell the sellers Realtor that you want a 3% "rebate" check from him in exchange for not having a Realtor. Otherwise he will just keep the whole 6%. If he says no, tell him that it sounds a lot like he is not doing what is in his client's best interest and instead doing what is in his own best interest.
This is BS in many respcts.
It is quite possible the poster has never sold a house, or the information would not be so inaccurate.
The commission misunderstanding by the poster is common.
"Demand 3% even if the agent is charging a total of 4.4%" is a fairly dull way to approach a transaction.
Quote:
Originally Posted by Heidi60
This very well stated. I don't think commissioned sales people are qualified to provide legal advice. An educated local RE lawyer does not have a financial interest in the outcome so, especially for a new buyer, their opinion is well worth their cost. Why would a client have the sales person explain only what they want you to know?
You are so correct, as evidenced by so many other threads, about the realtor's compensation system which will only be revised when the public stops giving away its equity. For a new buyer, I would like to add that you should always use an independent inspector who is not recommended by the sales person.
Yawn. The usual copy/paste without thought or actual inspiration.
"Always pick an inspector with no qualifications yourself, because your agent might pick one who knows his work and writes an honest and articulate report."
Really? That is shameful advice, IMO. But what do I know? I work for clients, not against agents as a knee-jerk uninformed reaction.
No one trolling on agents suggesting inspectors here has EVER answered what the agent should do when a client picks a loser for inspector of if letting the client proceed with a chosen and widely-recognized buffoon inspector increases the agent's liability. If the posers want credibility, they should have a straightforward answer to that question, and no one has ever even tried to address it.
I've sold several homes/condos on my own without a real estate agent. It's not difficult. Get a good lawyer at a flat fee & understand your market. Research is your friend.
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