I know why I SHOULD get a real estate agent, now I want to know why I SHOULDN'T.

on_ice · 06-30-2007, 09:40 PM

Everything I have been reading leads me to believe that I don't need an agent, except for help with paperwork. What do you guys think?

Judging by the people that browse these forums I pretty much know what kind of answer I am going to get, but i'm gonna ask anyway.

corey r. · 06-30-2007, 09:48 PM

Selling or buying?

I will always use one for buying. They can give me back a cut of the commisson.

on_ice · 06-30-2007, 10:02 PM

Buying, I am at like 50/50 on getting one or not. I know neighborhoods, I know negotiation, I even have the place picked out already.

nipster · 06-30-2007, 10:07 PM

Despite what they say, they have to make their money somehow, it comes out of the price in one way or another

so I guess do you want to spend less?

TNathe · 06-30-2007, 10:11 PM

put it this way, if the place you are buying is using an agent then most likely youll pay the SAME price as if you used one as well. The thing is, the 6% WILL BE THERE, if you bring your own agent to the table that 6% is split between the two agents so each getting 3%. Use an agent if they are selling through an agent.

corey r. · 06-30-2007, 10:48 PM

Quote:

Originally Posted by on_ice

Buying, I am at like 50/50 on getting one or not. I know neighborhoods, I know negotiation, I even have the place picked out already.

if thats true, then get an agent and talk to them, most likely they will give you part of thier 3% commison since you already did the work. The seller is paying 6% to an agent whether you bring one or not. the 6% gets split if you bring an agent.

You might as well get a cut of it.

nipster · 07-01-2007, 01:08 PM

seller paying my ass, you all know it comes out of the price one way or another, and as for splitting commissions any kickback you may get is potentially illegal

that 3% more you spend on your loan will end up costing you thousands over the life of the loan

this is a realtor myth and FUD they spend

other than access to the MLS (big deal), buyers agents get you nothing

corey r. · 07-01-2007, 03:25 PM

Where are you getting all this information? Are you a relator or broker?

**Scott** · 07-01-2007, 08:22 PM

Quote:

Originally Posted by TNathe

put it this way, if the place you are buying is using an agent then most likely youll pay the SAME price as if you used one as well. The thing is, the 6% WILL BE THERE, if you bring your own agent to the table that 6% is split between the two agents so each getting 3%. Use an agent if they are selling through an agent.

Well we have one person that gets it. ^^^^

You will get polarized opinions on this topic as you (on_ice) have already noted. Good for you for realizing this.

One opinion will be from the ones that think services should be free, greatly reduced, or be kicking you back something just because.

Watch out for those agents because the ones that will do this are already going into ethics violations so who knows where that will start and stop. Not to mention the opinion that Realtors are bad and "just want to make sales". Although this could be potentially true for some of the part time and Johnny come lately agents but a lot of them have been cleared out with the slow down. (thank goodness).

Then their are the ones that understand the importance and serious pitfalls you can get yourself into with one wrong step trying it on your own. And for every one person that says they can or have done it on their own successfully there are many more that have got into a world of trouble for not using a agent that is free for you to use anyhow (buyers agent of course ).

Some people just have a real discontent for agents, there are a myriad of reasons for this that need not be explained because most are transparent anyhow plus it would get to off topic.

There are not many things in life that are free but a buyers agent is one, so use it. Just find a experienced one. He / she will make your transaction much much smoother and keep you away from trouble.

corey r. · 07-01-2007, 08:37 PM

Quote:

Originally Posted by Scott

Well we have one person that gets it. ^^^^
One opinion will be from the ones that think services should be free, greatly reduced, or be kicking you back something just because.

Whats wrong with a relator offering something on HUD?

But I personally will try to look for the cheapest way to get the job done, and go from there.

Dont you offer a deal to TF members?

TNathe · 07-01-2007, 08:49 PM

^ hey, IF THE HOUSE YOU ARE BUYING IS LISTED BY AN AGENT (which 98% of them ARE!) YOU WILL BE PAYING THE 6% EITHER WAY. Bring your own agent to the table and they SPLIT THE 6%.

BTW: Have you taken a Real Estate or Mtg Broker class corey r.? If not then I doubt you know half of the Real Estate and Lending laws and practices and procedures.

corey r. · 07-01-2007, 09:07 PM

No, I am an engineer by trade. But I know how to get a good deal.

Anyway, Im saying the same thing you are. Shit, when my parents went to look at new houses, I had 2 relators offer to come with us and give back $1000. And no, they werent brand new to the game. they both have been doing it about 10 years.

on_ice · 07-02-2007, 02:12 AM

Yeah, after a few open houses when the realtors realized I did not have a realtor most of them offered money back. One guy even offered 3.5% back.

After some more research, and your guy's help...I think I decided to use a realtor. I will be giving a bunch of calls tomorrow.

**Scott** · 07-02-2007, 01:04 PM

Quote:

Originally Posted by on_ice

Yeah, after a few open houses when the realtors realized I did not have a realtor most of them offered money back. One guy even offered 3.5% back.

After some more research, and your guy's help...I think I decided to use a realtor. I will be giving a bunch of calls tomorrow.

Wise choice to get a aegnt, but as I stated I would be very leary of any that openly offer "money back". There are some serious ramifications to this in most every case. Not to mention I would be personally leary of a agent that was so eager to do so.

on_ice · 07-02-2007, 01:13 PM

What kind of ramifications?

TNathe · 07-02-2007, 01:26 PM

I think it may be against the licensing laws/ethics, ie. they can possibly loose their real estate license by doing such a thing.

corey r. · 07-02-2007, 01:40 PM

Whats wrong with a realtor credit on the hud which is 100% legal?

fencerider2 · 07-02-2007, 02:29 PM

Zip calls the refund a rebate.

* Rebate is available only to buyers who close escrow/proceed to final settlement with ZipRealty acting as their sole and exclusive agent in the purchase of real estate. For homes with a final sales price of $100,000.00 or more, the rebate is twenty percent (20%) of the cooperating broker commission actually received by ZipRealty at the close of escrow/settlement for representing the buyer net of any allowances or other deductions by ZipRealty related to the transaction. Occasionally, the seller and/or listing broker in a transaction will offer the broker representing the buyer a bonus or other additional incentive over and above the cooperating brokerage commission. Any such bonuses or other additional incentives are separate and apart from the cooperating brokerage commission actually received by ZipRealty and buyer is not entitled to a rebate on any bonus or other additional incentive monies paid to ZipRealty over and above the cooperative broker commission. For homes with a final sales price of $99,999.99 or less, the rebate is Two Hundred Fifty Dollars ($250.00). If within a 6 month period, a customer both buys and sells real property through ZipRealty, the customer is eligible to receive either an additional rebate of up to five percent (5%) of ZipRealty's commission for representing the buyer in the case of a purchase, or an additional one quarter of one percent (0.25%) reduction off of our listing commission in case of a sale. The additional rebate or commission reduction will be applied to the second of the two transactions to close escrow or proceed to final settlement. See your agent for details. The amount of the cooperating broker commission received will vary on individual properties. The rebate will be paid or credited to the party or parties named as the "buyer(s)" or "borrower(s)" on the HUD-1 Closing Statement or equivalent official closing statement. In the case of an IRC §1031 Tax Deferred Exchange ("Exchange"), the party named as the "buyer or borrower" is the Qualified Intermediary (the "Exchange Company") and the rebate will be paid or credited to the Exchange Company for the benefit of the party conducting the exchange (the "Exchanger"). All buyers, or in the case of any Exchange, the Exchanger must sign a Rebate Agreement before any rebate will be issued. This rebate program is only available where permitted under state and federal law and when not otherwise prohibited by the buyer's lender(s). The rebate program is not available in New Jersey. There may be tax consequences to the rebate. If you need legal or tax advice, you should consult with the appropriate professional. Offer subject to conditions, limitations, exclusions, modifications, and/or discontinuation without notice.

on_ice · 07-02-2007, 08:01 PM

Just got off the phone with the sellers realtor and if I dont have one, looks like I can get ~3% lower price.

**Amortized** · 07-02-2007, 09:07 PM

Quote:

Originally Posted by on_ice

Just got off the phone with the sellers realtor and if I dont have one, looks like I can get ~3% lower price.

Scenario 1. Do not use a buyers agent, buy house for $97k.
Scenario 2. Use a buyers agent who has your best interest in mind who advises you to use a different home inspector than the listing agent suggested. The new home inspector found out the expectancy of the roof is only 4 years as opposed to 15. Your offer of $92k is accepted.

If you don't have EXPIERENCE buying and selling RE, DO NOT TRY TO DO IT ON YOUR OWN. If you do, you only have yourself to blame when you get bit.

06-30-2007, 09:40 PM	#1 (permalink)
on_ice Registered User	I know why I SHOULD get a real estate agent, now I want to know why I SHOULDN'T. Everything I have been reading leads me to believe that I don't need an agent, except for help with paperwork. What do you guys think? Judging by the people that browse these forums I pretty much know what kind of answer I am going to get, but i'm gonna ask anyway.

07-01-2007, 03:25 PM	#8 (permalink)
corey r. Family First	Where are you getting all this information? Are you a relator or broker? Last edited by corey r. : 07-01-2007 at 07:28 PM.

07-01-2007, 08:49 PM	#11 (permalink)
TNathe Registered User	^ hey, IF THE HOUSE YOU ARE BUYING IS LISTED BY AN AGENT (which 98% of them ARE!) YOU WILL BE PAYING THE 6% EITHER WAY. Bring your own agent to the table and they SPLIT THE 6%. BTW: Have you taken a Real Estate or Mtg Broker class corey r.? If not then I doubt you know half of the Real Estate and Lending laws and practices and procedures. Last edited by TNathe : 07-01-2007 at 08:53 PM.

07-01-2007, 09:07 PM	#12 (permalink)
corey r. Family First	No, I am an engineer by trade. But I know how to get a good deal. Anyway, Im saying the same thing you are. Shit, when my parents went to look at new houses, I had 2 relators offer to come with us and give back $1000. And no, they werent brand new to the game. they both have been doing it about 10 years. Last edited by corey r. : 07-01-2007 at 09:15 PM.

06-30-2007, 09:48 PM	#2 (permalink)
corey r. Family First	Selling or buying? I will always use one for buying. They can give me back a cut of the commisson.

06-30-2007, 10:02 PM	#3 (permalink)
on_ice Registered User	Buying, I am at like 50/50 on getting one or not. I know neighborhoods, I know negotiation, I even have the place picked out already.

06-30-2007, 10:07 PM	#4 (permalink)
nipster UF 2008 National Champs	Despite what they say, they have to make their money somehow, it comes out of the price in one way or another so I guess do you want to spend less?

06-30-2007, 10:11 PM	#5 (permalink)
TNathe Registered User	put it this way, if the place you are buying is using an agent then most likely youll pay the SAME price as if you used one as well. The thing is, the 6% WILL BE THERE, if you bring your own agent to the table that 6% is split between the two agents so each getting 3%. Use an agent if they are selling through an agent.

07-01-2007, 01:08 PM	#7 (permalink)
nipster UF 2008 National Champs	seller paying my ass, you all know it comes out of the price one way or another, and as for splitting commissions any kickback you may get is potentially illegal that 3% more you spend on your loan will end up costing you thousands over the life of the loan this is a realtor myth and FUD they spend other than access to the MLS (big deal), buyers agents get you nothing

07-02-2007, 02:12 AM	#13 (permalink)
on_ice Registered User	Yeah, after a few open houses when the realtors realized I did not have a realtor most of them offered money back. One guy even offered 3.5% back. After some more research, and your guy's help...I think I decided to use a realtor. I will be giving a bunch of calls tomorrow.

07-02-2007, 01:13 PM	#15 (permalink)
on_ice Registered User	What kind of ramifications?

07-02-2007, 01:26 PM	#16 (permalink)
TNathe Registered User	I think it may be against the licensing laws/ethics, ie. they can possibly loose their real estate license by doing such a thing.

07-02-2007, 01:40 PM	#17 (permalink)
corey r. Family First	Whats wrong with a realtor credit on the hud which is 100% legal?

07-02-2007, 02:29 PM	#18 (permalink)
fencerider2 Puppet Masturbater	Zip calls the refund a rebate. * Rebate is available only to buyers who close escrow/proceed to final settlement with ZipRealty acting as their sole and exclusive agent in the purchase of real estate. For homes with a final sales price of $100,000.00 or more, the rebate is twenty percent (20%) of the cooperating broker commission actually received by ZipRealty at the close of escrow/settlement for representing the buyer net of any allowances or other deductions by ZipRealty related to the transaction. Occasionally, the seller and/or listing broker in a transaction will offer the broker representing the buyer a bonus or other additional incentive over and above the cooperating brokerage commission. Any such bonuses or other additional incentives are separate and apart from the cooperating brokerage commission actually received by ZipRealty and buyer is not entitled to a rebate on any bonus or other additional incentive monies paid to ZipRealty over and above the cooperative broker commission. For homes with a final sales price of $99,999.99 or less, the rebate is Two Hundred Fifty Dollars ($250.00). If within a 6 month period, a customer both buys and sells real property through ZipRealty, the customer is eligible to receive either an additional rebate of up to five percent (5%) of ZipRealty's commission for representing the buyer in the case of a purchase, or an additional one quarter of one percent (0.25%) reduction off of our listing commission in case of a sale. The additional rebate or commission reduction will be applied to the second of the two transactions to close escrow or proceed to final settlement. See your agent for details. The amount of the cooperating broker commission received will vary on individual properties. The rebate will be paid or credited to the party or parties named as the "buyer(s)" or "borrower(s)" on the HUD-1 Closing Statement or equivalent official closing statement. In the case of an IRC §1031 Tax Deferred Exchange ("Exchange"), the party named as the "buyer or borrower" is the Qualified Intermediary (the "Exchange Company") and the rebate will be paid or credited to the Exchange Company for the benefit of the party conducting the exchange (the "Exchanger"). All buyers, or in the case of any Exchange, the Exchanger must sign a Rebate Agreement before any rebate will be issued. This rebate program is only available where permitted under state and federal law and when not otherwise prohibited by the buyer's lender(s). The rebate program is not available in New Jersey. There may be tax consequences to the rebate. If you need legal or tax advice, you should consult with the appropriate professional. Offer subject to conditions, limitations, exclusions, modifications, and/or discontinuation without notice.

07-02-2007, 08:01 PM	#19 (permalink)
on_ice Registered User	Just got off the phone with the sellers realtor and if I dont have one, looks like I can get ~3% lower price.