The Home Ownership Thread

[jbarwick]

Seems easy enough I could do it myself.

 

[otc]

You don't even have to get the sellers agent to cut their commission if you are looking for a better deal (also, there is no such thing as "the seller pays it"...that just means you paid more for the house).

If they are getting both commissions, they have every incentive to make the sale go through. Doesn't matter one bit if the home price falls 10%, because they still get more money than if they sold the home for 10% over asking to someone with a buyer's agent. Say it is a 200k house and each broker was going to walk away with 5k. If you come in with no agent and the seller's agent will get both, they will make 9k on the sale if they can convince their client to let it go for 180k. At that point you don't care that you aren't saving the commission because you are saving far more. If you both had agents and they managed to get a bidding war going to raise the price to 220k, they would only make an extra 500 bucks. Incentives are pretty backwards on seller's agents.

Of course if you have never done this before, You've got to have someone (at least get a lawyer)...I certainly would be hesitant to go through the process without the help of someone who has done it hundreds of times.

 

[E TF]

I'm sure the process is quite different here in England, but I have never used a buying agent and have not found any part of the process to be beyond me.

 

[jgold47]



On the other hand, wouldn't it actually be in the seller's agent's best interest to look out for the buyer in this situation? It's their only opportunity to get twice the commission, assuming everyone else is using their own agent. Therefore, while unethical, it would make sense that the agent may persuade the seller to take a lower than reasonable offer because they know they will still get paid more.

technically no - they have a fiduciary relationship to protect their client. Plus, true dual agency is frowned upon in most states and illegal in some. You simply cant represent both sides of a transaction.

Not using a buyers agent is really foolish. Really foolish.

 

[Gus]

I bought a home without a buyers agent but used the services of a real estate attorney. I liked paying by the hour rather than a fee based upon the selling price.

 

[E TF]

Ah so sounds like the norm over there is to use an agent but not a lawyer. Over here I'd never dream of buying a house without a lawyer. Many of them charge a set fee for a house purchase of a few hundred pounds. It's never a percentage.

But all this stuff -

the purchase process involves a lot of work and detail you may not have thought of. Offer, counteroffers, bidding war - do you have a plan and strategy to ensure that your offer is the right price? The right price doesn't matter solely in terms of getting the best deal for yourself, a knowledgeable buyer's agent will help you make sure your offer is something that will appraise out so that you can get financing. Will you be checking in regularly with the listing broker to make sure that all is proceeding to plan, e.g., any items that come up requiring repair after home inspection, making sure smoke detector inspection and final meter readings with all utilities are all set, coordinating a final walk-through, etc.?

is stuff I'm perfectly happy to do myself, and in fact much of it I would rather be in control of directly, specially the bidding and financing.

 

[FtRoyalty]

I went with a buyers agent for my current, and first, home and glad I did. I was comfortable shopping around and speaking with lenders on my own. However once we found the house we wanted, I wanted someone to walk me through under contract and closing. In hindsight, the process wouldn't be that hard to do on your own (getting an inspection, appraisal, find an attorney).

That said more times than not, "for sale by owner" signs change to realtor signs.

 

[HRoi]

although I wouldn't do a real estate transaction without an agent, I'm still suspicious if the value they bring is commensurate with the fee, especially on the high dollar homes.

I was at a friend's house, who was in the market a few months ago, when his agent picked him up for an appointment in a 458 Italia. I told him afterward that if I were accused of a capital crime and my attorney pulled up in a 458, I'd feel better. my real estate agent? I'd wonder how she was screwing me.

 

[CTLION]

I have sold a home on my own and have purchased a home that was "For Sale By Owner."

You really don't need a realtor in this day and age (realtor cringing in anger). It used to be that you needed a realtor to find a home, but much like travel agents you can do it yourself...and save money on-line. Now here is the kicker. If you sell it yourself be prepared to sit on the home a bit longer. Most buyers use a realtor and most realtors will avoid your home like the plague. You can change this is you agree to pay that realtor's percentage/commission. Your choice.

If you are buying a home from a For Sale By Owner you can really negotiate a great deal.

In either case you still want a lawyer to handle your legal transfer and to cover you if any issues come up.

Hope that is helpful.

 

[aravenel]



I was at a friend's house, who was in the market a few months ago, when his agent picked him up for an appointment in a 458 Italia. I told him afterward that if I were accused of a capital crime and my attorney pulled up in a 458, I'd feel better. my real estate agent? I'd wonder how she was screwing me.

Same here.

That's just client-service 101--don't be too flashy, makes it look like they are paying you too much.

 

[gort]

Got pissed and broke a door in my house to the master bedroom. I've been getting easily angered lately and it's not cool.

 

[Ataturk]

A real estate agent can represent both sides in a transaction as long as the scope of the representation is limited. You need to look at the specific terms of the contract for that, but the agent should have to keep both parties' confidences. If you're the buyer and you've kept the agent at arm's length (which you should have) that risk is only on the seller anyway. The agent should not act to benefit one party over the other, which benefits the more sophisticated party (which should be you, if you're agreeing to this). That's the trick--both sides get less representation. Ideally the agent will facilitate the transaction while letting the parties negotiate between themselves. And, again, the agent has every incentive to sell the house and can cut her commission to make the sale happen, which benefits the buyer.

I personally think a sophisticated buyer can come out ahead with dual agency.

 

[Ataturk]



Got pissed and broke a door in my house to the master bedroom. I've been getting easily angered lately and it's not cool.

If it's any consolation, door jambs are really easy to break, especially if they're not installed correctly (and builders rarely do install them correctly).

BTW gort if you want to fix that on the cheap, you probably can. Get some clamps and some wood glue and put it down the length of the crack. Then put the hinges back on with some long (3"+) coarse threaded drywall screws. It might hold up.

 

[FtRoyalty]

Is there a way for a seller to list a house on MLS without an agent?

Not having sold a home, I'd think limited exposure of one's home would be a big hindrance. I don't think the average buyer will look at Craig's List for something as large as a home purchase.

 

[CTLION]



Is there a way for a seller to list a house on MLS without an agent?

Not having sold a home, I'd think limited exposure of one's home would be a big hindrance. I don't think the average buyer will look at Craig's List for something as large as a home purchase.

Yes there are services that can put you house on the MLS.