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Proffer, I feel your pain and want to offer hope. For our first two real estate transactions, we had real duds for agents. In fact, if I ever saw one of them around town it would ruin my day.
However, as we got wiser we figured out how to chose the right agents and it made a world of difference. I cannot say enough about the service we have received in our last few transactions. Our last purchase was in a new part of the country to us. It was a very, very fast move and we hardly had time to blink. Our agent was extraordinary in the short time we had together at explaining pros and cons of the various neighborhoods, construction norms for the area, etc. We chose a home and were able to close in 2 weeks, even though we did everything long distance. I thought for sure we would have sold after a couple of years and relocated once we really got to know the town, but 5 years later we realize this is one of the best locations in the area, just like he said it was. It's going to be a cinch to sell once it's time to move on.
I also chose a lot one time to build a house, told our agent which one we wanted and had an accepted offer within a couple of days. I didn't realize until later that the lot hadn't been for sale, but somehow our agent managed to get it for us. I found this out from another agent. Ours didn't say a word about the hoops she jumped through for us. The house we built there made a nice chunk of change when we sold, too.
Good luck with finding an agent. Great ones are definitely out there
There is more to buyer agency than getting the home for less than the listed price. There is inclusions and exclusions, the financing, the inspection, appraisal issues and other things that come up before during and after closing.
Lets look at a few facts about real estate agents.
1: The majority of agents than enter the business never really learn the business. 85% of new people entering the business, will fail out of the business as they cannot earn a living. Many of them, will never sell even one property. They are not in the business long enough to really understand it, and really do not know what they are doing. They don't really get any real estate education, beyond going to a school to learn enough about what will be on the real estate exam so they can get licensed.
2bindenver above is talking about what so many agents do not understand, and don't know what to do to actually make the best acquisition for their clients.
2: A lot of agents must be frustrated taxi drivers, as there only way to operate is to get a prospect into their car and drive them around to see houses till they are so tired they give in and buy about anything on the market. They don't sit down with the buyers, and spend an hour or so to find what really turns them on as to neighborhoods, types of homes, etc., etc. If they did, they should be able to never show more than 3 homes to the buyer before they buy as there are never many perfect homes on the market and a good agent that knows the local home inventory will from the time spent talking to buyers the right ones to show them.
I went into the real estate business in 1972, after spending just over a year taking real estate classes through a major university and some private classes. I had 20 years sales experience before going into real estate which let me know if you want to go into a business, you have to get educated to succeed. I stayed in the business till I retired. I specialized in commercial/investment/farms and ranches/especially 1031 exchanges which often involved several properties and often multiple states and even as far away as Costa Rica, and Belize. My first day in the business, I sold an office listing of a upscale 3 year old apartment house, another 2 days later, and following week I worked, I exchanged a 16 unit 2 year old apartment house as the down payment on a large irrigated farm. I was off and running having done more dollar business in those 2 weeks than except for top agents, more than most agents do in an entire year. I succeeded because I got the education to do so, but most agents do not do that.
It is hard for a buyer, to find a good buyers broker, that knows the ins and outs of the real estate business.
From what 2bindeenver says above, that is an agent that knows what he/she is talking about and understands what it takes to make a good agent for buyers. A good agent is more than someone that can take you around to see house after house, and to try to get you a price reduction. It is someone that understands the rest of the business and knows how to protect his/her clients working for their best interests.
Can you be more specific about the information you think your agent should be offering you but is not?
I am trying to figure the same thing! Most buyer's agent are working for the buyer not the Seller so steering one away from homes signals that isn't a good buy! It's called "due diligence" but a lot of buyers are too dumb to recognize it!
The OP seems to have a problem understanding "fiduciary". A realtor (agent) signs a contract with the seller to represent his/her best financial interests in a real estate transaction, in exchange for a fee when the property sells. It would go against everything that is legally/contractually required of that realtor, to turn around and give helpful hints to a potential buyer. In most (if not all) states, this would be a clear breach of contract.
If the realtor who is showing the property is NOT the listing agent, e.g. the person who actaully signed the contract with the seller, he/she may be more likely to make comments about the property, but as a professional who expects to collect a portion of the fee paid by the seller when the property sells, they clearly should not do so. As a selling agent (vs a listing agent), they should still represent the seller, as that is the person who will pay their fee.
If the OP wishes to have fiduciary representation (someone to represent their best financial interests in a real estate transaction), they need to sign a contract with an agent who is not in a position to collect a fee from the seller if that property sells. The OP would then be responsible for paying the agreed-upon fee to that "buyer's agent" for such representation. Typically, the fee would be due and payable whether the OP actually purchases a property or not, as that agent would not be compensated by the seller when the property sells.
It all has to do with fiducuary representation. Just as you would never expect an attorney representing a client opposing you in court to give you legal advice as well, so you should not expect a realtor in a position to collect a seller's fee to represent you in the transaction.
Thanks all. I really appreciate it. I have had a hard time getting an agent to A) tell me how much to offer, and B) what some of the features of the property are that may add to or detract from its value. Concerning point A, they give me comps but tell me that the comps don't matter, that the home I chose defies the comps, etc. (so I should offer more). How can EVERY home I see be worth more than comps? Regarding point B, I need an agent who offers insight similar to what might be expected of an appraiser, so that I can get a good idea of what price to offer. To note, this is complicated by my seeking an historical property.
You are looking to buy a unique one of a kind, historic property. There are really no comps, that can give you the correct price for the home. They are right, when they say you should offer more. Your kind of property preference will up the price above comps based on sq. ft., number of rooms etc. You will be paying a premium to buy a unique home, if it is in good physical condition.
You are looking for a Realtor to do an official type appraisal on the property to determine what you should pay. Realtors are not appraisers, unless licensed as appraisers, so don't expect them to give you what you are looking for. If you want that type service, hire a licensed appraiser to make you an official appraisal on the property. This is often done, in situations like yours. It also gives you something to use as a basis to reach an agreement with sellers to purchase the property.
If the OP wishes to have fiduciary representation (someone to represent their best financial interests in a real estate transaction), they need to sign a contract with an agent who is not in a position to collect a fee from the seller if that property sells. The OP would then be responsible for paying the agreed-upon fee to that "buyer's agent" for such representation. Typically, the fee would be due and payable whether the OP actually purchases a property or not, as that agent would not be compensated by the seller when the property sells.
This is not accurate. I can and do act as a fiduciary to buyer clients in transactions where I am paid by the seller's broker as part of their listing agreement with the seller. My buyers pay me nothing unless by prior agreement in rare cases like FSBOs who won't pay a broker.
Fiduciary duty comes about not by who is paying but by contract. A buyer's agent has a fiduciary duty to the buyer by contract despite being paid by the seller via a split fee arrangement with the listing agent. The listing agent is paid by the seller directly but it is the listing contract that determines fiduciary duty.
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