Realtor - what are the pros of hiring one?
Are there any posititives to using a realtor when purchasing a home - in my opinion, I think it makes more sense to do without the realtor for the purchasing of a home, since in most cases the lawyer is the one that is watching your back. The realtor is only the middle man. When we purchased our home, we identified the house or houses we wanted to see, my realtor was slow to react and then in most cases he sided with the seller. Just curious on your thoughts. A lot of money for the little work they do.
JoltonD You certainly don't need a realtor but they have access to so many more listings than you do. Plus, houses listed on MLS typically have a lockbox with a key for physical access. You would then have to contact the sellers agent for access, so you would still be working with a realtor. A good buyers agent will coordinate mortgage applications and home inspections. If your prior agent was uncooperative or unattainable then research to find your "perfect" agent. Let them do the legwork. The commission would then be split at closing. No additional funds out of your pocket.
I have had many decades dealing with realtors and wouldn't buy or sell without one. Make sure you advise your prior realtor in writing that you are unsatisfied with their business.
Good luck!
ms_warren_county Would you actually be paying the realtor who helps you buy the house?
I am familiar with the situations where the house seller is going to be paying the realtor fees (say 6%), and in the case where there is a realtor on the buyer's side, the commission is split to 3% for them and 3% for the seller realtor - in other words, nothing comes out of your pocket.
D-ManPV 
pmnsk 
eapos Key is finding the right agent. If you don't like the agent you are working with fire them and move on to the next. You can have many agents. While looking for my first home I had three agents. I was able to find many houses quickly because of the amount of people looking for the same. Don't feel obligated to stay with one agent. If his or her working habits are not up to par, find a new one.
Tony http://realestate.msn.com/5-ways-homebuyers-are-kept-in-the-dark
the whole real estate industry is a scum bag thing - unfortunately they're invaluable but expensive.
skippy Buying without a realator is nearly impossible since there are not many houses for sale by the owner. There are of course some, but finding the right house "for sale by owner" is not easily found. But if you are the seller, you want a "pushy" realator. You want someone with a high sales rate, and they are the pushy ones. My son listed with one realator for six months and he did nothing for him. He then switched to a very aggressive one and closed in six weeks at basically his asking price. Interview several and go with the pushiest most aggressive one you find.
Tanya 
sackThis is probably a con, not a pro, unless you're the one that owns the camera...
http://www.dailyrecord.com/viewart/20131223/NJNEWS/312230017/Suit-Real-estate-agents-used-Denville-couple-s-home-sex-trysts
Reggie Voter I renovate and flip houses, for a living, so I buy and sell a house every year and a half or so. (In fact, my current home will be going up for sale before spring.) We have a good agent we have worked with for years, but I really don't think they are as necessary as they once were, with all that is available on the internet. Nonetheless, there are some significant advantages to having an agent, when buying a home.
First, the cost. A buyer's agent would earn a commission. That commission is normally payed by the seller of the home. However, IF you know what the house is worth and what you are willing to pay and what the seller is likely to accept, you may get a better price, without an agent, or with the seller's agent acting to represent both of you. For example, say you're looking at a house listed for $325K, but you are willing to pay $300K and you think the seller might accept that price. Now, let's assume a nominal 5% total commission, with half paid to the seller's agent and half paid to the buyer's agent. That's $15K in commissions, with half going to a buyer's agent. But you could also approach the seller's agent and offer to pay only $295K for the house, since the agent can waive paying out a fee to a buyer's agent. That means you can save a quick $5K on the deal. That's a really good incentive to avoid hiring an agent, when buying a home.
However, a good buyer's agent can also do a lot for you, to potentially save you time, money, and hassles. They are experienced at knowing a home's worth and at negotiating the best price. They know the area, so they can tell you all about the neighborhood (the good and the bad). They can often spot problems with a home that you might not (structural issues, property-line issues, liens against the home, etc.). They can recommend attorneys and specialists to do home inspections, radon testing, well testing, appraisals, etc. You may find that, in the end, the agent has earned his fee.
Keep in mind, too, that you can also play a bit of "hardball" negotiating, with a buyer's agent. For example, let's use the same house I discussed above. You found the house online, went to have a look at the outside, know the area, etc., and you're really interested. You could approach an agent, discuss the house, and say you'll hire him to be your agent, IF he can get you the house for, say, $297K, even if it means he has to waive part of his own commission. He calls the seller's agent, they negotiate, and he figures he can take a reduced commission, since he really doesn't have to do a lot of work showing you different houses, and he gets you the price you want. He makes some money, and you have the advantages of an agent to represent you.
JerseyWolf I am getting very frustrated with the professionalism or lack thereof with the agents in this town from different agencies. They are either rude, conniving, lazy or disloyal. I have lost the opportunity to buy 3 homes due to one or more of the issues I listed. One home I lost mere hours before atty review was set to expire bc my agent didn't fight for me. I fear that my dream of owning a home again will be just that as rules are set to change next year with regard to mortgages etc.. If only it was this time last year I would have more to choose from& better luck!
H-town Mama When buying our house several years ago, we initially worked with a real estate agent who was an acquaintance of ours. Because he was an acquaintance, the way he handled the situation may have been different than if we were strangers (although we still had to pay him his commission upon closure of the sale). I was the one who searched the MLS listings and decided which houses we would like to look at and aside from opening the door for us, our realtor was very uninvolved. On the occasion when he found a house to show us, it was generally one that didn't come close to fitting our criteria but for which he was the listing agent (in which case he would have made the full commission on the sale as the agent on both sides so he was really pushing those). After looking at a ton of houses, we found one we liked (a short sale) and put in an offer. Long story, but there were so many problems, most of which stemmed from the communication between our agent and the seller's agent, and the level of unprofessionalism between both agents was mind boggling.
While our offer was sitting with the bank on that house, we stumbled across another property that was for sale by owner. Without the help of our realtor, we met with the seller and really hit it off. Just the three of us (the seller, me and the BF) sat down and negotiated the sale price, closing terms (in this case, we had agreed for the seller to be allowed to stay in the home for up to a period of 60 days after the sale to allow time for him to transition into his new home ), etc. We decided to go for it (no realtors involved at all) and withdrew our offer on the first house. For all inspections, appraisals, etc. we coordinated directly with the seller for scheduling and found it so much more convenient than going through our realtor who would go through the sellers realtor who would go to the seller and then relay the information all the way back through the chain. It was also great talking directly with the seller as he was able to give us a lot of specific information about the house like repairs that should be done in the next few years, repairs that had been done in the past few years, tips on the most efficient way to mow the lawn and so much more.
Both parties had their own lawyer and ours was strictly a real estate lawyer who was absolutely fantastic and never let us get ahead of ourselves without finding out information first and educating ourselves. For example, the survey showed an easement on the property so he instructed us to do some research and find out what the easement entailed to ensure it would not limit us (turned out to be very minor access to a water source on the edge of the property). There were so many little caveats that, because of his many years experience, he was able to point out so we could see whether or not it was a deal breaker for us (i.e. whole property is subject to Highlands act and part is Wetlands which restricts building). Because everyone worked together, from the time we found the house to the time we closed was about 45 days. We paid our lawyer about $1200 and no commission to any realtor, saving approximately $12,000 between us and the seller as well as a ton of headache. In my experience, the trick with successfully and painlessly doing a for sale by owner transaction with no realtor involved on either end is that the seller and buyer need be responsible and motivated to help each other. Just because its a buyer's market or seller's market, doesn't mean that one side should have all of the advantages. In our case, we were flexible with allowing the seller to stay in the home for brief period after the sale which he was worried about (the terms were very clearly indicated in the sales contract so that liability was defined and we wouldn't be held responsible for any problems during that time) and we got a great price on the home and an expeditious closing. If I have any real estate transactions in the future, unless necessary, I would prefer not to use a realtor at all (just a REALLY good attorney!).
Happy Homemaker Happy Homemaker, if you don't mind, could you mention the name of the Attorney.? We will be selling in the near future and this sounds like a great idea...
boobalaa Could you also pm me the name of your atty as I am desperately trying to find a house and would like to look into the For Sale by Owner route
Thanks!
Great suggestion!!!
boobalaa & H-town Mama,
I looked up the contact information for the attorney we had used but it looks like he is no longer in NJ. Hopefully some other folks can chime in with real estate attorneys they used in the past and were happy with.
Definitely try and avoid the dual agent. I had one when I sold my last house (he was the listing agent and found the buyer). Itseemed like he was bending over backwards for the buyer and asked me for all the concessions. Buyer probably felt the same way. It was a nightmare.
MeisterNJ Thank you for trying Happy Homemaker, I will check back here for any recommendation.
I am interested in selling my home in independence --- without a realtor --- does anyone have a recommendation of a good flat fee service that will put my house on GSMLS. thanks so much everyone. Oh yeah-- I understand the pros and cons of having a realtor -- I was a realtor at one time - so I really just need the info on a good service. Thanks again
Jerry Thomas I did that when I sold my last house, late last year, so I can give you some info.
First off, having it listed on the GSMLS dramatically increased interest and, ultimately, led to a sale. Buyers who had an agent seemed far more likely to come see the house, probably because it better guaranteed the agents' commissions.
Perhaps you are aware, if you used to be a RE agent, but the problem, here in NJ, is that the agents have a real monopoly on things. Technically, only a licensed broker can list a home on the GSMLS, and only if they are representing you, even if only in a limited way. There is no way to list your home on the MLS and still sell it independently, "without a realtor." A flat-fee broker becomes your "agent," but they really don't do anything for you other than list the house online.
I listed with Realmark Realty, a flat-fee service. They EVENTUALLY did a decent job . . . but I had to hound and nag them. Oh, they listed the house, and quickly enough. The problem I had was the way they didn't want to use my written description and photos so that they showed up properly on the MLS (and other sites). It took me a bunch of nagging to get them to do it and do it right. But in the end, they got their flat fee, and I got the sale. I'm not sure I can actually "recommend" them, but if you're willing to push them a bit, it can work out.
Read freakonomics and do what realtors do when they sell their homes - don't be pushed into a quick sale - don't give anyone more than a 30 day exclusive on the listing and get in writing how they will advertise the property - negotiate a 4 point split between the listing and selling agent - these folks want to lock you in to a year exclusive and spend $50 on a GSMLS listing and push you to drop the price every other month.
A realtor will get you the visibility that you can't get by doing it on your own. Use a realtor company that is reputable & not a mom & pop shop. A major realtor company will get you visibility on several major sites; not just their own. Listing on the MLS also helps big time. Yes, you have to pay a commission but really, by having a realtor work with you, they can help you with negotiations or any unusual circumstances you may run into with buyers. Realtors will also do a financial background check on bringing people into your home to look at - at least major realtor companies do that. That protects you from having just anyone show up to look at your house.
I am a realtor so yes I am partial but I have seen people try selling their houses on their own & it's not easy as you think.
Luca To one side a relator is just selling cost. If you think you can do it yourself, then you can pocket all or some of that cash.
A good relator, on the selling side, provides marketing tools and advantages. They do not necessarily show your home but increase the traffic, hopefully quality through marketing. A bad relator just lists you.
Last go round I had was a white elephant (expensive fixer-upper looking for a special family) in a location remote from me. My agent advertised well, held many open houses and other marketing events and carefully mapped a pricing strategy including extra marketing efforts upon lowering the price. It was worth it to me.
strangerdanger Realtors are like car dealers. In 20 years we won't have either one as we will do this directly.
TM
Troublemaker Last year two houses on the street were for sale. Both were represented by big companies, Coldwell Banker and Re/Max. The one agent didn't bring by a single buyer, made some other agent do the the open house, and never even showed for the eventual closing. Was at the property in person all of twice. Between the two houses there were 5 accepted offers where the buyers could not get their mortgage. Three of the buyers the banks completely turned down for any mortgage at all, at any price. Two managed to be approved at a lower amount than the contract they signed. Those two were the eventual new owners since one mortgage was not far off, and the other house was handled by a relo company that financed the difference.
That's trusting a big company and not a mom & pop? Protection against unqualified buyers?? They were so bad. Anyone who's been an agent has all the contacts anyway. MLS and that lock box on the place is key. No one reads newpapers today, that's useless advertising. People can search MLS and web sites without any agent required. What's worse is a low cost company who just gets you on MLS is actually better than that well known company agent that holds back the listing, or keeps the listing active even after its sold just to bait & switch.
Troublemaker - I don't think car dealers are the best analogy because that's still transitioning. I'd say think of travel agents.
GC 
Larry M Darst Having been an agent and no longer one, I would absolutely hire a selling agent - the amount of aggravation you would get doing it yourself as well as the time spent with home inspections, scheduling any repairs, etc. as well as open houses - is well worth the money -- I would shop around for one you like and/or referred by a friend that you trust their judgement...
trekster3- Erealestatenj is where you can pay and have your home listed on mls. Just be prepared to do all of the work yourself. They receive the leads and pass them on to you for follow up, showings, etc. you pay a flat fee to list it for 6 months.
As an agent, what I have found is that when a buyer approaches a for sale by owner, they are automatically considering a 5-6% reduction in their offer price, figuring that they are going to "steal" the house, as the owners are not paying a commission. At the end of the day, the seller ends up doing all of the work themselves and saves nothing.
It doesn't matter what company you hire, it's all about the agent and how much they'll go out of their way to market the property for you. Some do nothing, others do everything.
Western NJ Realtor Having your home just on the MLS definitely helps but larger companies will get your listing out on multiple sites like Trulia & Realtor.com. Also, potential buyers are financially screened BEFORE going to see your home - why waste your time & the agents time - right? Open houses do not sell houses; instead they just bring nosy neighbors, etc. Also, dealing with multiple lawyers and inspectors is what the agent deals with - a GOOD agent so shop around & get references!
I just purchased a "for sale by owner". It was very easy. Made them an offer in January and closed in February. Went down that route because the 3 houses that I put offers on, suddenly had other offers and I would get bumped out. 2 of which happened during attorney review. The other offer wasn't accepted even though my offer was $20k higher. I don't think that the offer was presented. Needless to say my experience with realtors had not been good.
Jenn Why NOT get a realtor? - As a seller, because of the $$$$$$$$$$$$$. As a buyer not necessarily much reason not to. Sometimes you can get a bit less, but not always. The price has more to do with what the seller wants so I wouldn't be so shy about a realtor when buying.
http://www.nj.com/business/index.ssf/2013/11/home_prices_slowly_returning_t.html
The average home price in NJ is 296 K - the state charges you a point to relocate in it and more points to escape from it - so you're telling me someone who offers no legal advice, can represent both sides of the transaction if they bring the buyer nor do they guarantee anything are worth 18K - seriously get bent
"Why NOT get a realtor?"
As I stated above, I sold a home last year, using only a flat-fee agent to get it listed on the MLS. Other than that, I marketed and sold the house, myself. I calculated that, all factors considered, I saved between $9,000 and $11,000, versus listing it with an agent. In fact, I sold it for thousands of dollars MORE than agents initially recommended for a listing price!
Going without an agent is not for everyone, and it's not for every home. But 11 THOUSAND dollars in my pocket is my answer to Flappy's question.
Skippy, like anything other profession there are good and bad. If your looking for a good realtor, a 30 day exclusive, at 4% you might as well just try and sell it on your own. I don't know any good realtor that would take that deal unless they knew they had a sure thing lined up.
@Jenn, if the Realtor didn't present a valid offer while the home was available they could easily lose their licence. The only possible benefit to the realtor in not presenting the offer is if the buyer was his client. That would double the commission, but very risky way to operate, hardly worth gambling away your livelihood..
Denis yeah because $12 k is completely irrelevant - make sure realtors completely rape the seller - the point being is it is not the consumers fault you are a vestige of a sh***y industry
I don't care you need to kick a point up to your broker on both sides.. the whole real estate industry - much like car sales and in certain ways the software and music industry are based on the fact that those that are agents and brokers have access to information the consumer does not and you will charge them a premium for it -
welcome to post industrial society - we are all Drucker knowledge workers now and the "job" is irrelevant. agents offer no value other than a gate to be transcended to access information - trucar and other sites have broken the auto sales industry - lets see how long this sham lasts.Zillow is kicking their ass at the moment.
Skippy I couldn't disagree more, but I don't really want to argue on this one. I will just say as far as Zillow goes, it's a money maker for smart brokers, and agents. Not an ass kicker.
Some of you must be in a different planet of realtors than I was. I have bought and sold 5 houses in my life. Not one of the 10 or so realtors I have dealt with "screened" the buyers. Heck, they couldn't have screened me as a buyer or they would have had to do a credit check on me, which I know that they did not do.
Sure, realtors told me buyers occupation, family status etc and I think they told me about mortgage but that was it. Hardly being screened.
In my view one of the reasons to use a realtor is so that people can view the house you are selling and there is some measure of comfort that strangers aren't coming in because they have to be with a realtor to get access to the house with a lockbox.
The lockbox thing, home inspection walking, negotiating etc is a nice thing to have but is it worth 5-6% of a house, many times $20K+, no way. I like all the realtors I have worked with. But it is not worth $20k to take some pictures, write it up and negotiate.
TM
Ok I'm not in the field so I don't know about Zillow - it definitely lets an average person to pull comps which they didn't have before.
Hey everyone, thanks for all the information. I really appreciate it. I do not see why anyone would not want a realtor on the buying side. Heck, they do all the work and have the resources -- and it is FREE! But on the selling / listing side - now that is different. I agree with Jersey -- I am looking for a good flat service organization ---someone with a flat rate service. This service should list on MLS, Zillow, Trulia, Google, Yahoo etc. --- but I do not see a phone number for any of these agencies ... would anyone recommend a flat rate agency? Maybe someone I can speak with? Jersey did not appear too excited to recommend his. I would love to list my home ASAP -- thank you so much everyone. I will have an attorney do 90% of the legal work and paperwork. I will supply descriptions and pictures for MLS. I will also put a note in the comment section that agents are welcome on hybrid deals--probably 2 1/2% . I appreciate the input . Oh yeah -- And please understand, this is not a knock against realtors. Realtors are the most talented, hard working and resourceful folks out there. I agree ...most folks should use them.
Thanks Jerry
My experiences and opinion with real estate agents -
You can buy any house on your own. Just do your homework. Realtors just have easier access to listings and marketing tools if they are doing your listing. Most agents know real estate procedures well but I find very few actually know sales.
Real estate agencies teach a lot about real estate laws and the different relationships between agent and customers, property zoning, paperwork etc. However, they teach very little about actual sales and/or negotiating. Most agents have to learn the "selling" aspect on their own and unfortunately I have yet to meet an agent with any real negotiating, sales or closing ability.
I find it hilarious how most agents have inflated egos and call themselves "professional negotiators" yet have absolutely NO formal sales training and/or negotiating skills whatsoever. They are more like property consultants and less like "sales" consultants. These days ... a real estate transaction is hardly a sales transaction.
I worked in sales for more than 30 years. I negotiated my own property purchases and one time saved myself nearly $20,000 more than what my so called real estate sales agent was willing to even offer. In fact she said "they won't except it, but I'll offer it anyway" but they did accept and I saved myself $20K! So there you go!
If you choose to work with an agent, choose one who was formally trained in sales BEFORE becoming a real estate agent. Most sale agents just get their real estate license and are thrown into the mix with no real sales or negotiating experience. They list a few properties that are their friends and/or families, then call themselves professional negotiators.
NOT saying there aren't some agents out there with real sales experience and strong closing ability. The majority that I've worked with were very nice people that were well versed in real estate terms, but had little to NO selling ability whatsoever.
I now have a few friends in real estate who were trained in sales first and then became agents. However, even they will tell you it's hardly a sales transaction anymore. In fact you are not even allowed to push, pitch or suggest much ... I'm told it's called "pushing", "puffing", "steering" and is forbidden in the industry. I am perplexed as to why they even call sales anymore. It truly is just consulting.
Point being ... You can do it yourself if you really want to. Just do some homework to understand the processes.
To those of you who chose to sell on your own without a realtor - good luck as you truly do not have the means or skills or resources that a good realtor does. Unfortunately some of you have dealt with realtors who are not as well versed as the rest of us.
"Ok I'm not in the field so I don't know about Zillow - it definitely lets an average person to pull comps which they didn't have before." Just bear in mind that Zillow is not comps, won't as much as a recent sales price comparable for tax assessment for example, but a "Zillow formula" that works better with newer houses but not so good with old or one-of-a-kind features. Ultimately the price is either what you charge or what someone is willing to pay --- not Zillow.
That "white-elephant" I spoke off sold for a huge percentage over the Zillow price. Zillow only had the square footage to go from off the tax rolls and none of the features of the house. The fact that Zillow was off the mark did not seem to slow the traffic, but who knows.
Luca said -
"To those of you who chose to sell on your own without a realtor - good luck as you truly do not have the means or skills or resources that a good realtor does. Unfortunately some of you have dealt with realtors who are not as well versed as the rest of us."
Resources - I agree. Realtors have 'easier access' to resources. (still attainable and available to anyone online)
Means - LOL, How do you know what "means" people have? Are you a mind reader?
Skills - LOL, You automatically assume to know someone lacks the "skills" just because they want to list their own house. LMAO ... sounds like sour grapes to me.
Although for some, a realtor can be very helpful, you do NOT need to be a realtor to successfully sell a piece of property. Furthermore, In some cases, people with extensive, formal sales experience might be better off selling on their own.
To assume that you know other peoples means, skills and/or access to resources without any knowledge of them whatsoever ... is a wee bit arrogant. It also sounds like someone 'might' be trying to validate their own professional existence. Just saying .... :)
That's my very humble opinion of your statement anyway.
But, What do I know? I'm just an old washed up lady with 30 plus years of formal sales experience. :)
strangerdanger - That's not the full story on Zillow. You're correct that the "Zillow Estimate" is based on information that is not necessarily based on comps. However, in addition to the estimate they give, they have a section that is other area homes and you *can* search for the comps just like an agent does. Sales are public record, and they're on line these days. Companies like Zillow and Trulia are plugging that info into the maps and pictures, as well as the MLS data they can get as well.
This is why the industry is changing - the tightly controlled resources that were previously hidden on purpose are not so hidden any more. The number of sq ft, the number of rooms/bathrooms, the tax history, the previous sale price, even how many days on market and the number & amount of price reductions are all on line now. Even when a house is not on the market, all the listing info from the previous owner is now on line because those web companies are archiving it
I just have to reiterate--- it is very difficult to paint with a broad brush about realtor skills and talents. But they are some of the hardest working and dedicated folks that I've ever encountered. I would always use one on the buying side -- why not??? They have all the resources available to them, besides the inside network with other realtors. It is a no-brainer...but on the selling and listing side --- that is another story. I agree it is still a pain in the rear end to list your own home, but it is worth giving it a try and saving the dollars . But again -- I have the utmost respect for realtors. A very hard-working bunch of professionals.
Well said ... Jerry Thomas ...
I agree with you.
A 'good' realtor can be beneficial to you, especially when buying.
That said ... Although a 'good' realtor can be beneficial to you in a real estate transaction, it is not a 'necessity' to use one. Some individuals may posses the ability to handle the transaction on their own and with great success.
- Buyers pay no fees to realtor. Why not use their resources.
- Sellers pay fees. IMO, Why not try yourself! Especially, if you are sales savvy.
They definitely have skills and talents - I just think the compensation for those is out of line - with the brokers in some cases taking half the commission - I understand that they don't get paid until the property sells but expectation of a seller having to shell out a jackpot payday to cover the time in between closings is not necessarily equitable for anyone - any system that does not pay its employees a salary, expects them to work for free (manning the office phones etc.) and pay all their own expenses is not keeping up with the times. 30 years ago it was a license to print money - especially in commercial real estate - the stranglehold of the MLS and brokers is not especially relevant any more. It's like the music industry or the movie studios.. Nobody cares when we recorded stuff off the air on tv or the radio back then. We all shared cassettes - now I can email you a digital file that has the same quality as the studio master? Lawsuits intellectual property infringement yoda yada - the industry has not kept up with technology and rather than remaining relevant wants you to continue to pay through the orifice of your choice.
as a buyer your realtor is NOT working for you unless you specifically have a buyer agency agreement. They are working for the seller. You jump in their car and tell them about what you want and can pay - and guess what they are not working for you which limits what they can tell you about a home. they are legally obligated to protect the sellers interests at that point.
So whats that mean for you.. Don't take a home inspectors or attorneys recommendation from them obviously.. why? Legally realtors have a fiduciary duty to their clients and have incentives to recommend inspectors and attorneys who wont kill the sale..
Do you think they will recommend an ultra thorough inspector? Remember thorough inspections take many hours, and the Realtor has to sit there and babysit the house. and is not being paid..
If you are looking to build, don't ask for a referral for a builder. they will add an agent referral fee to the total cost of construction..
oh you use redfin and do all the leg work yourself? nope you 'need' a realtor to put in an offer as the seller can't cut them out of the deal..
We will be selling our home in the next year or so and I already have our realtor lined up. I belong to a local moms club and she was in the group with me. By purse chance I had mentioned our intentions to her (not even knowing what she did for a living) and I've been sold ever since on her professionalism. She has visited my home and advised us what to spend $ on, colors to use and she's brutally honest. She knows what we are looking for in terms of moving into a new home and has shown us anything we've wanted to see. There was one house that I wanted to see over the winter and I kid you not, she showed up with shovel in hand no proceeded to shovel the walkway because the listing agent hadn't bothered with it. She has hustle and is constantly doing open houses for her clients. She spends her own money to have professional photos taken and listed 7 ways from Sunday. I have nothing but respect for the work she does and I have NO doubt she'll sell our home at or over our asking price. We aren't ready to sell for quite some time, but even my husband agrees that she is the realtor we will use. She's aggressive and honest. I think she's worth the commission. Who spends hours and every weekend sitting around hustling like that?
Antimony she sounds great - may I recommend that you bake in some type of deal on the sale of this place to retain her has a buyers agent on the next purchase so she truly represents you. Ergo 4 percent commission on the sale or a 60/40. As nice or professional as someone can be - their legal obligation is always to the seller unless you establish agency.
GC, sounds good and I have used the public records before. Note that some places provide access, other locales not so Zillow getting it is dependent on that. Likewise with MLS data. Heck that house I sold is still up there from the MLS with the pictures from 2012. Kinda creepy actually. I think folks can block Zillow access if they choose whether by real estate company choice or individual. But I get you and comp access sounds good since selling price is the only real number out there. Everything else is an estimate. And full MLS access, if you really can get full access and flash (daily) reports, really does replace a lot of agent power on the buying side.
As far as I know, Zillow estimates are based on public information, tax records, and their proprietary formula which includes user submitted data. Gosh knows the formula and whether the user data is accurate.
As to how they determine comps, anybody's guess --- proprietary formula no doubt.
Point is, it is what it is, take it with a grain of salt. It ain't writ in stone.
One of my first encounters with Zillow was when they "upgraded" their formula which severely downgraded their estimate of my house. It was formula magic since neither the house nor market conditions had changed. At that point, I knew it was a guesstimate. So I put a number of user features in: jacuz, solar, stable, 2,000 foot storage/shop -- no heat --- and more what I would consider relatively healthy adders. Appears they were all comparable, I guess everyone has that, since the price did not move for the number of months I monitored.
It is what it is and I would judge whether the comps are comparable in your mind before I took that info to the bank (as in deciding it's the gospel).
"may I recommend that you bake in some type of deal on the sale of this place to retain her has a buyers agent"
No need to bake anything into the sales contract. You can sign an exclusive buyer's agent agreement by itself anytime you want, even before you've located (or even started looking) for a new house.
In most cases I'd ask why you would want to limit yourself with such an agreement, though (at least until you've extended an offer). There's really very little benefit to the buyer and a LOT of benefit to the agent before that point.
Mark Mc. Well I was just thinking that buyers agents usually get in the neighborhood of $2500 and if you can bake that into the sale you wouldn't have to come up with cash but I don't disagree. Also if you don't make a payment their still a sellers agent they have no fiduciary or legal duty to you and are legally limited in what they can disclose.
If you are paying out of your own pocket for a "buyer's agent" then find a new agent.
Signing an exclusive agreement should cost nothing. It's still a legally binding contract so that they represent your interests, but they will get paid through the sales commission (splitting it with the listing agent). The agreement just protects them if they show you a house and you decide to pull a realtor switcheroo at the last minute... they would be able to lay claim to the commission.
That leads into another tip, buyers should never use the listing agent to buy a house.
Example - even if you use an agent form wherever that you bring to the table - they find out through the grape vine there is a divorce or a job relocation and the seller is highly motivated and would take less than asking or hold a note whatever to sweeten the deal - they can't legally tell you that. if you're cool with that than fine but understand that's how that works bro.
Denis settle this for us since you are in the field .
Skippy, you really don't understand the business at all. If a agent is showing you a home, he is a buyers agent. He has a fiduciary obligation to put your interest first. If the home he is showing happens to be his own listing then he is a disclosed dual agent and has a fiduciary obligation to both buyer and seller. As far as what they get paid average commission is 6%. As strictly a buyers agent you normally get 2.5%, and then half of that goes to the Broker you work for, bringing you down to 1.25%. Best case scenario where you represent both buyer and seller you get 3%.
MarkMc. Ive never heard of a buyers agent getting paid for anything unless the buyer purchases a home.
So much misinformation here!
http://www.hudsonviewrealty.com/INFO/aboutbrokerage.htm
That's where I got that from - I didn't make it up
"MarkMc. Ive never heard of a buyers agent getting paid for anything unless the buyer purchases a home."
On the "Exclusive Right to Buy - Buyer Agency Contract" down here there is an option to add a "retainer" fee to the agreement, separate from any sales commission... why anyone would do that is beyond me, but never say never...
"So much misinformation here!"
Considering I just signed one a few months ago, its fresh in my mind. I didn't sign until AFTER I had an offer extended, so I didn't care if I was locked into one realtor. The deal fell through, however, so I'm glad the term was only for 1 month and didn't cost me anything.
Whether the money goes to the "broker" or the "agent" is really splitting hairs. You give the check to the agent.
http://www.wsj.com/articles/SB126341099545928169
http://www.streetdirectory.com/travel_guide/32307/home_improvement/who_does_your_real_estate_agent_really_work_for.html
"If you are the buyer, it is important for you to use a buyer agent because of the financial, legal and ethical implications. A seller's agent has a fiduciary responsibility to the seller not to you as the buyer. This means during all negotiations a seller's agent will be looking out for the interests of the seller. Here's a real life example to help clarify. Suppose an agent discovers that the seller must relocate for a new job, has become highly motivated and is now willing to accept $15,000 under the listed price. If the agent is a buyer's agent - working for you - he/she will be obligated and excited to tell you this information. If the agent is the seller's agent - working for the seller - he/she does not have to disclose this information to you and may withhold the information initially to get the highest offer from you."
Agree beyond me why anyone would, and never say never. I've never heard of anyone doing it. Out of curiosity I asked my Mom who had her own Agency in Jersey City for 30+ years and she never heard of anyone paying a buyers agent unless they sold them a house.
"Whether the money goes to the "broker" or the "agent" is really splitting hairs." You give the check to the agent." Not splitting hairs when it comes to the agent. Broker sells you one of his listings he gets %6. Buyers agent sells you someone else's listing he gets 1.25%. Point being you usually have to work very hard to earn what you do, and it's not as much as people think. There is a reason why almost 9 out 10 agents give up trying to make a living in real estate.
Skippy, that could be a potential conflict of interest if they are a dual agent. That's why buyers and sellers should always have two different agents.
Dennis, from the buyer's perspective it really doesn't matter who ends up with the money. It's baked into the sale price.
Of course on the agent side it matters.
Not correct skippy he has an obligation to both parties.
This Agreement evidences Buyer’s consent that the Brokerage Firm, as Buyer’s Agent, may act as a Disclosed Dual Agent in order to represent both Buyer and Seller in the same real estate transaction, and seeks Buyer’s consent to allow Buyer’s Agent to act as a Disclosed Dual Agent when the opportunity arises. Buyer should be aware that a real estate licensee may legally act as a Disclosed Dual Agent only with Buyer’s and Seller’s informed written consent.
Buyer understands that Disclosed Dual Agency (representing more than one party to a transaction) has the potential of creating a conflict of interest in that both Seller and Buyer may intend to rely on the Buyer’s Agent’s advice, and their respective interests may be adverse to each other. Therefore, when acting as a Disclosed Dual Agent, Buyer’s Agent will not represent the interest of Buyer to the exclusion or detriment of the interests of Seller; nor will Buyer’s Agent represent the interests of Seller to the exclusion and detriment of the interests of Buyer.
As a Disclosed Dual Agent of both the Seller and the Buyer, Buyer’s Agent will be working equally for both parties to the real estate transaction, and will provide services to complete the transaction without the full range of fiduciary duties ordinarily owed by an agent who represents Buyer alone, or the Seller alone. In the preparation of offers and counteroffers between Buyer and Seller, Buyer’s Agent will act only as an intermediary to facilitate the transaction rather than as an active negotiator representing either the Buyer or Seller in a fiduciary capacity. By consenting to this dual agency, Buyer is giving up the right to undivided loyalty and will be owed only limited duties of disclosure, obedience and confidentiality by the Buyer’s Agent.
For example. Buyer acknowledges that Buyer’s Agent, as a Disclosed Dual Agent, is not permitted, under law, to disclose to either Buyer or Seller any confidential information which has been, or will be communicated to Buyer’s Agent by either of the parties to the transaction. Moreover, Buyer’s Agent is not permitted to disclose (without the express written permission of the Seller) to the Buyer that such Seller will accept a price less than the full listing price. Nor will Buyer’s Agent disclose (without the express written permission of the Buyer) to the Seller that Buyer will pay a sum greater than the price offered by Buyer. It is also impermissible for Buyer’s Agent to advise or counsel either the Buyer or Seller on how to gain an advantage at the expense of the other party on the basis of confidential information obtained from or about the other party.
Buyer acknowledges receipt of the Consumer Information Statement on New Jersey Real Estate Relationships.
@Mark Mc, agreed just pointing out it's not as lucrative, and easy as many think.
Man, look at all the drama I started! Ha-ha!
I actually will use her for both transactions. She invests a heck of a lot of time and effort which I cannot say for the agent my MIL is using in another state. My husband is a workaholic with a crazy schedule and I'm basically looking to make our lives easier when it comes to buying and selling. She's fair though - I genuinely don't think I'm getting robbed or feel the need to bake in savings for myself. She sat with me for 3 hours today just discussing paint and trim colors. Granted, we had social chit chat as well, but my point is that she didn't have to give us any advice or recommend workers. We don't have any contract with her. She knows full well that we go to open houses on our own and aren't just looking with her firm. i guess I see her as an investment in US - she'll save me time which will at some point save us $. She's super candid too - and I prefer to deal with people that don't sugar coat everything. I also appreciate the fact that despite the fact that she was here with us, she was also messaging her clients and clearly capable of juggling A LOT and yet I still felt like a priority. Good service is worth it to me. I can cutback on something else in my life if I'm looking to save money. I'll never get my time back.
positive Thanks for the explanation- just understand I was not intending to spread wrong information - I got it from what I considered good sources and looked to you for the correct answer .
Having the same realtor represent both parties in a real estate transaction is kind of like having the same attorney represent both parties in a civil suit. It's a ridiculously obvious conflict of interest and no reputable profession would permit it within their code of ethics.
ianimal No problem skippy, there are a lot of good honest realtors out there with long lists of satisfied buyers and sellers. The real estate commission is very active following up on complaints, and the fear of losing your license if you make an "ethical" mistake is real. Of course like any other profession, there are some out there that are less than honest, and I've bumped heads with a few, but I think they make up a small percentage.
ianimal it depends on the situation. I was recently contacted by somebody who was very interested in a home she had seen sitting vacant for years. She couldn't find any information on her own. After digging a while I was able to get in touch with the owner. It had severe damage from the pipes bursting during the winter. The house was going into foreclosure, and the owner just wanted to put it behind her. Long story short after 11 months of haggling with the bank, fannie mae, and endless paperwork the buyer got the house they wanted, the owner walked away with cash, and not having a foreclosure black mark on her record for 7 years. The bank also got more than they would have when it eventually went to auction. I never look at a sale from the view point of how can I maximize my profit, I look at it from the point of view of how do a get a deal done, and how do I do it where every ones happy. The best marketing tool for a realtor is positive reviews online, and word of moth referrals.
Thanks skippy ingrained from my Mom who had her own agency in Jersey City for 30 years, and is loved by many past clients.
It shows - you have integrity and are an exemplar of your craft - honors to your mom for raising a great progeny
Hey folks. As I stated earlier I am selling my house. I am in between byowmerflatfeemls.com ... $100 they put on MLS, trulia, Zillow, realtor.com etc 6 months.. And they even have a live number... Sounds very good... The other option is the old Forsalebyowner (fisbo). 3 different plans ... But most expensive was $500. For MLS. That seems expensive. You have to have it on MLS... I want agents to have access. Any ideas friends? Thanks so much
Even if it seems more for MLS, it the other service doesn't offer it, $500 is not a lot compared to $18,000. Nor is $600 if you need both. To me, the most important of all is the lock box that agents will bring their clients to view the house. Does either of those services include that? Agents totally hate and avoid having to make a special appointment to view a house. You're low house on the totem pole without a lock box. The box is also a tool to track who has been in and out of the house. You need that like you need MLS. It's the same thing that puts you on par with the traditional agent.
The lockbox can be important, GC. But as I stated above, I sold my own home, and I didn't use a box. People showed up, I let them in, and I left. I'd stay at the nearby park, and the agent would call or text me when done, and I'd return. I actually found it to be beneficial, as I could meet the people before they left and often answer any questions they had. In fact, for the last two homes I sold (the one before that, I had an agent), I basically "sold" them, by answering certain questions to alleviate unease about some issues and to point out some of the positive aspects they may have missed, directly to the potential buyers. However, I was also available, most of the time. For someone who isn't around to let in potential buyers when THEY want, a lockbox would be more useful.
That being said, the last time I sold, I used a flat-fee service, and they didn't provide a box with the fee. However, you can get one on Amazon, though it's not the same as the electronic ones used by agents that record who accesses the house.
I plan to sell my current project, early next spring. This time, I actually installed a $110 keyless-entry deadbolt. Since I can keep erasing and re-programming new 4-digit codes, I can give a code to one agent, and he/she could use it one time, and then I could erase it, so they can't get back in without contacting me and getting a new code.
I loved my keyless entry lock! It's especially great if you have kids. And yes, for single entry and erase code. Plus, you don't have to carry a house key yourself! It falls under my "best purchases ever" category.
maja2 Maja, even being a former locksmith, I was surprised at just how easy the keyless deadbolt was to install and use. And in addition to the basic convenience and using it to eventually sell the house (or for kids who always forget their keys!), I have already found several other uses for it. Since it can hold several codes, I can always have one for an emergency, and if I'm not home, I can call or text someone with that extra number, to let them in, but change it later, without changing the other codes I use regularly. I also plan to soon start renting out the master suite on AirBNB, and I will be able to easily change the codes after each guest.
I've already had several other people ask me to install one for them!
@ Jerry, your probably already realize, but just in case, If you want agents to have access to your home through FSBO MLS listing your going to have to pay a commission to the buyers agent, and it will need to be inline with normal commissions for them to want to show your home.
WOW ! great advice folks. I did not even think about the keyless lock. I will look into that --- great! Yeah Denis -- I am going to pay the 2.5% to the buyer agent. I will put that in the comment section. Lets face it -- you need to attract agents to have a better shot of it moving. It would be nice to find someone (private) that found the house on their own -- but I have to be a realist. You never know what a home inspection is going to show. -- I am especially concerned about my septic system. I get it pumped every few years but you never know with Septic systems. :(
Thanks so much everyone for your input.
If you're worried about septic, have your own inspection done right now. A clean septic report will help sell the house. If it needs repair, your contract would probably fall through anyway. Better to be proactive and start working on it now if it's going to be an issue.
Yeah gc... That is probably good advice. The only challenge I could see is if the buyer wants his own inspection -- and sometimes buyers do like their own people to do everything. I would definitely not want to have it inspected twice -- some of these septic tests can be very very trying on the system. Like pouring an ocean of water into your drain -- if your septic doesn't have problems it could develop one after two tests - but I generally do agree with you -- it is probably a good idea. Thanks -- I appreciate it
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