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I don't think in this day and age "finding the house" is near the top of the list of jobs we do. But helping clients look at the list of available homes and figure out which ones are right or wrong is up there.
First, if they will be financed, we help them get connected to a good lender for their situation, whether that's VA, FHA, conventional, first time buyer. Whether it's a client with good credit or one who needs help with some credit cleanup first. One who will explain all the costs like taxes and insurance that will end up needing to be part of their budget so they don't end up over their head. One who will give us a reasonable budget to work with.
As a buyer's agent we explain the current market conditions, whether there might be room to negotiate or whether we would likely have to bid up above list price to win it. Both things are happening here right now, depending on the area, the house, and the price point.
As a buyer's agent we help clients who call or text us about a new house they saw that seems like a great bargain, and let them know I didn't send it to them it's because it's in the flood plain, or right next to RR tracks, or a rock quarry. If we go to look at homes, as a buyer's agent I look for things that might be red flags or deal breakers for their lender or will be costly needs in their future.
As a buyer's agent we help the buyer through all the decisions they need to make in order to place the best offer they can be happy with. Amount of earnest money and down payment, time line, contingencies and inspection periods the buyer wants for the structure, well, septic or sewer.
As a buyer's agent we can often recognize common issues like bad roofs, ripped flooring, suspected asbestos tiles or insulation, dry rot, blown window seals, recalled electrical panels, peeling paint or missing CO detectors. Some are expensive to fix, some are not... Some can be negotiable, but some issues the lender will not close until they are fixed. As a buyer's agent, we help walk through that with you and the inspector(s) and the seller to negotiate a good agreement, or we help you walk away and get your earnest money back.
As a buyers agent there have been many times where the best thing we did was help the buyer get out of the contract with their earnest money when the inspection revealed issues that made them not want that house.
Read this part slowly because the roles matter. The seller's agent has no desire for you to easily walk away. Buyer's agent has no desire for you to end up in a house that is a mistake for you. Seller's agent's primary job is a happy seller. Buyer's agent's job is a happy buyer. If you tell me you want out, it will be my job to get you out. Truly, most times, the goal is for both sides of the sale to be happy, but there are times when those goals diverge. That's when it matters whether you have an offer contract drawn up by YOUR agent to protect your interests, even the interests you don't yet know you need, or an offer written by someone who wants an attractive contract for his seller, with the fewest contingencies.
We bought a new house 2 years ago near Raleigh. We did our research and found a "Buyers Agent" we were happy with.
In hindsight, it was a great decision. She guided us through inspections we didn't think of, negotiations we weren't sure we had the power for with a new house, checked over every line in every document we received, and much more. She made sure we had the best deal and as issue free as possible.
Best of all, she was charged to the Builder, so it was all free for us.
We bought a new house 2 years ago near Raleigh. We did our research and found a "Buyers Agent" we were happy with.
In hindsight, it was a great decision. She guided us through inspections we didn't think of, negotiations we weren't sure we had the power for with a new house, checked over every line in every document we received, and much more. She made sure we had the best deal and as issue free as possible.
Best of all, she was charged to the Builder, so it was all free for us.
"Best of all, she was charged to the Builder, so it was all free for us."
Not really. It is certainly baked into the builder's pricing. And if you borrowed money to buy, you are paying interest on that commission money.
One of the biggest lies agents have told for many years is that buyers' agency is FREE! to buyers. It certainly is not.
True enough Mike, but now with these recent changes, I'm not sure if it will pan out for them to continue to roll it in to their financing, or if they'll have to pay it out of pocket. Most don't want to have to pay it up front. Some first time buyers need help or gifts to come up with down payments already.
Better to say it's rolled into the purchase price, than free.
True enough Mike, but now with these recent changes, I'm not sure if it will pan out for them to continue to roll it in to their financing, or if they'll have to pay it out of pocket. Most don't want to have to pay it up front. Some first time buyers need help or gifts to come up with down payments already.
Better to say it's rolled into the purchase price, than free.
Yes.
I always told clients it was baked into the price.
It was the honest way to handle it.
I started as a Real Estate Broker/ not a salesperson in 1987. Interest rates were 16.5 percent and knowing how to do the correct math to structure a deal was my responsibility. I also qualified a buyer who came into my office wanting to "buy a house". You can't believe the number of great people/individuals as well as couples who had been turned down by the broker "up the street" because they didn't "look" like they had any money. In most cases, these were the most qualified buyers I had worked with in some time. Every time I listed a property, the sellers wanted me to "sell it" for whatever reason they had at the time. Many I did and at the closing table, all felt treated fairly. I also sold my own home and disclosed, disclosed to the buyer but they didn't want another agent. Deal went very smoothly. As someone has said on this thread, this is just smoke and mirrors to justify what always happened. The commission fee was set by the seller. The fee was disclosed via the MLS so the buyers agency knew what they would receive at the close of the transaction. If the agent who brough the buyer actually worked so the transaction was smooth, I was surprised. Many did...most did not. Real estate is not brain surgery....NAR and he brokers who own the big agencies with tons of people turning over their cash to them, needs to be brought in line. This is the only business wherein someone gives you your inventory to sell for a reasonable price....not an inflated price. And then everyone, from the attorneys to the loan officer, to the real estate companies, to the agents involved, get their piece of the pie. This cannot be news to the majority of sellers out there. I do have to say that as a listing agent, I really got tired of negotiating a commission for a nameless, faceless person who would waltz through the door with a person who liked the house. The house sells itself, individuals do not. If you want a 4 bedroom home ...there is no way I can sell you a 2 bedroom home, even if it is "cute". I would have been really happy to ljust negotiate a price for which I would work for them. Some were listing they 3rd or 4th home with me. Of course, they deserved a major discount, but because I had to state the buyer's agency fee.....I could not give the discount I might have liked to give. It is a Barnicle Business.....people who learn to take a test, attach themselves to a company's managing broker who promises them many things for a "percentage" of what they bring in house.....and those people think they couldn't do this job on their own. They can and many do successfully, I might add.
I get a buyer agent if I find a piece of real estate I really like but I think it is overpriced, based on my familiarity with that market. One indicator of that is that it was listed way too long ago - sat on the market way too long. Yet you saw it and there was no reason for that except that it was overpriced. In one case I realized not only that, but the realtor who listed it was not particularly interested in a sale (in this case a $250,000 property was not what that real estate agency was particularly interested in selling - their signs were planted in front of million dollar properties and the agent they sent to show me the place was a 100% clueless underling sent to show some other guys listing). So, interested in that property (but not willing to pay anywhere near the listing price) I got a buyer agent.
I was lucky to happen upon a buyer agent who knew what to do. He got them down to my price. I don't think that happens all the time...but, hey, no problem trying. I think I found him online advertised specifically as a buyer agent.
Sign NOTHING with the listing agent if you just had him show you the property! The first question my buyer agent asked me was did I sign any papers? I presume that some realtors may try to make you sign papers in order to "vaccinate" themselves against a buyer agent getting a cut of the commission?? [not sure]
Last edited by TwinbrookNine; 11-27-2023 at 04:23 PM..
Isn't it beneficial to have the seller's agent as your buyer's agent bc he knows what offers are coming in? If I have the seller's agent as my buyer's agent, do they get double commission
No. Just no.
You didn't make a wise real estate decision based on your previous post and you need guidance. I strongly encourage you to have your OWN dedicated buyer agent to help you make a good real estate decision/investment.
Mine was useless. I went online myself and picked out the homes i wanted to see. She only showed me the homes.
She was a part time RE agent and i had to sign a three month contract( i now know that was a HUGE no no.)
Of course, she was useless. She was a part-time agent who didn't spend the hundreds of hours required to become an expert. Why didn't you look for an expert?
Sign NOTHING with the listing agent if you just had him show you the property! The first question my buyer agent asked me was did I sign any papers? I presume that some realtors may try to make you sign papers in order to "vaccinate" themselves against a buyer agent getting a cut of the commission?? [not sure]
Terrible advice.
As Brandon said, the agent should require an agency disclosure to be signed or no showing.
Refusal to discuss and sign? Red flag you're playing games.
No showing.
Just terrible advice.
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