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We are looking to buy a home. Our Max purchase price is right on the verge of the price point for the type of house we are looking for. I feel it could be an advantage to put in an offer without a Realtor and ask for 2-3% below and acceptable offer price. Has anyone tried this? Or would it be worth it to just use a Realtor to get the insight and best possessible price which may still be lower than what I can get on my own. Thanks
You realize there is paperwork that must be filled out and submitted to "make an offer," right? It's not really an option for you to just buy it on your own without a real estate broker or attorney. Real estate is complicated, there's a lot involved behind the scenes, and you should not take these things lightly. Especially since you don't pay anything for a real estate broker's services as a buyer.
Yes, I am well aware of the legal complexities involved in real estate transactions as I have bought and sold houses in the past. My question is purely based on the best option available to get the best price period! Forget about the paper work. That is taken care of
PS - I do not take spending hundreds of thousands of dollars lightly, thank you.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Quote:
Originally Posted by BellevueNative
You realize there is paperwork ... "make an offer," right? It's not really an option for you to just buy it on your own without a real estate broker or attorney. Real estate is complicated, there's a lot involved behind the scenes, and you should not take these things lightly. Especially since you don't pay anything for a real estate broker's services as a buyer.
There is absolutely no need to go through a realtor. The title company does all the important paperwork. You need a very simple Purchase and Sell agreement that adequately protects the interests of buyer and seller. State realtor forms are many many pages of fluff, but helps to protect the agents and brokerages (who are only advertising agents... they have NO legal value). You can get a very good RE attorney for $300- $500 / hr. That is about 1/10th what you are paying your seller's realtor.
You need to find your own places to buy. If a realtor has it listed, it is too late to get a fair price (Commission and marketing cost has already been added). Thus... you pay dearly for real estate service that your seller is spending on. 'Gifting' realtors about $1,000 to $5,000 per hour in my case. (I do all the negotiation, due diligence, title and legal reviews + zoning, permit review, setbacks / tax district and assessment validation, financing, and payback calculations...) I insist that realtors never attend my closings, they drool all over the paperwork salivating for their commission. It is usually pretty embarrassing the foolish questions they ask and petty congratulatory comments. Absolutely ZERO value add (except to 'advertise' for seller and to provide a 'locating service' to the buyer). Very SPENDY service (?).. realtors will always whine and say "Do you know how many clients I haul around and spend DAYS assisting? and buying lunches, gas, supplies, shoes, Cadillacs... pathetic... my $35 grease car w/o AC works fine for finding properties, as it has for nearly 40 yrs. I would never think of asking a realtor to buy me lunch or dinner. (But I give my 'broker friends lots of gift certificates to use on their clients who desire hand holding and warm fuzzies)
I have bought and closed over 30 properties, many are very complicated commercial props with complex lease terms, UCC's, environmental and zoning concerns. (I have used realtors for 3 of the 30 (at the insistence of the other party))
This week I am in another state and I have bought 3 rural properties, It is the first time I have ever had 2 realtors involved. (in one of the 3 purchases). That one is by far the simplest (retirees selling a small acreage and moving to a senior MHP). I am paying cash and have offered to take care of septic / well / pest inspections, repairs, and the closing... The seller's agent has taken great offense that I would do such things and has nearly lost the sale for her clients. It is painfully slow and ridiculous going through 4 parties to make the simplest of decisions. My other 2 props this week will close and be financed, parties moved, thoroughly cleaned, and rented out long before the listing agent (sellers) gets off her high horse (pride) and comes down to reality. I bought one rural property in TX last week while I was in Hong Kong, sight unseen. I drafted and sent a P&S agreement to title company and asked seller to swing by and sign. Less than 20 minutes of seller's time was spent on the entire transaction. Done deal, while the other listing agent is prancing around telling her clients how powerful she is. She under-priced the property by about 20% of the sales price and will cost the sellers an additional 7% and 3 extra weeks. These poor senior citizens just got taken to the cleaners by their 'trusted' agent.
Yes, I am well aware of the legal complexities involved in real estate transactions as I have bought and sold houses in the past. My question is purely based on the best option available to get the best price period! Forget about the paper work. That is taken care of
PS - I do not take spending hundreds of thousands of dollars lightly, thank you.
Your question sounded like someone unfamiliar with the home purchasing process. Many first time home buyers have no idea what goes into the transaction.
A real estate broker can at least advise you on whether the houses you're considering are fairly priced. Many of them right now are not. And don't even think of looking to Zillow for guidance on that. You'll also need an agent to help show you homes, unless you're planning on just going to open houses. As a listing agent I do not usually do "sign calls" from buyers, as I don't do dual agency.
Quote:
Originally Posted by StealthRabbit
There is absolutely no need to go through a realtor. The title company does all the important paperwork. You need a very simple Purchase and Sell agreement that adequately protects the interests of buyer and seller. State realtor forms are many many pages of fluff, but helps to protect the agents and brokerages (who are only advertising agents... they have NO legal value). You can get a very good RE attorney for $300- $500 / hr. That is about 1/10th what you are paying your seller's realtor.
I did say "real estate broker or attorney." However, cost of one vs the other is relative to purchase price. OP has not said what his budget is. And although you are extremely experienced in buying and selling, most people are not and it would probably be of benefit to them to work with a broker. Most people don't have the time or desire to check listings every day, go to Open Houses every weekend, work with the title/escrow companies themselves, get county records/permits, negotiate with brokers/sellers, meet with attorney to have everything reviewed, arrange for their own appraisal and inspection and get broker/attorney to attend, etc.
OP, if you do work with a broker, find a good one that will work for you. Not all of them do, and those are the ones that don't deliver value. A good broker spends many hours working on your behalf and will find ways to save you time and money.
ETA: I don't know any brokers who attend closings, so I don't know what StealthRabbit is talking about. That happens in some states, but not here really.
ETA: I don't know any brokers who attend closings, so I don't know what StealthRabbit is talking about. That happens in some states, but not here really.
I attend mine. I'd say once a year, they actually need me there to get a document corrected or created, but I want to be there for the time it happens.
I think few agents attend closings out here in the PNW though.
I attend mine. I'd say once a year, they actually need me there to get a document corrected or created, but I want to be there for the time it happens.
I think few agents attend closings out here in the PNW though.
It's kind of hit or miss whether or not an agent will attend a closing in these parts. However, I attend all of my closings. From time to time, something comes up during the final walk through which needs to be negotiated at the closing table.
I do try not to sit too close to the table so as to prevent my drool from getting on any of the paperwork.
If the seller has contracted with a Realtor to sell the house, they have already agreed to pay the Realtor a certain percentage (5-6%) upon sale. It is pointless ... (and not too smart) for a buyer to attempt to buy the house without their own representative (Realtor) --- unless the seller's Realtor, (NOT the seller), has first agreed to accept a lower commission. --- The selling Realtor will not spend any less time, effort or expense (in fact, they will probably have to do more), if the buyer chooses to purchase without their own Realtor.
It depends upon you that whether you hire realtors or not. If you hire a realtor, then you have to pay some percentage also to them. If you are not having any idea for buying home, then it is the best platform that hiring realtor and buying your dream home.
It's kind of hit or miss whether or not an agent will attend a closing in these parts. However, I attend all of my closings. From time to time, something comes up during the final walk through which needs to be negotiated at the closing table.
I do try not to sit too close to the table so as to prevent my drool from getting on any of the paperwork.
In my area, many of the better agents hire personal assistants to attend to their drool buckets. It can be distracting having another person at the closing, but it does keep the table a lot cleaner.
Fortunately, excess saliva has never been a problem for me. I attend all of my closings (whenever an actual closing occurs) simply to make sure that everything goes smoothly for my client.
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and buying lunches, gas, supplies, shoes, Cadillacs... pathetic... my $35 grease car w/o AC works fine for finding properties, as it has for nearly 40 yrs. I would never think of asking a realtor to buy me lunch or dinner. (But I give my 'broker friends lots of gift certificates to use on their clients who desire hand holding and warm fuzzies
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