yo mama Posted July 3, 2007 Share Posted July 3, 2007 (edited) Even if you can save a few bucks by not using an agent, I still think you're better off engaging an effective agent in *most* situations. A good agent should locate homes worth looking at, will be able to research recent comps, gets you faster access into listings as many seller's agents avoid working with unrepresented buyers, will walk you through all the closing documents, may have cooperative lenders to refer you to (which you should get quotes from, then shop around), can help you understand disclosures and other information that is available on any listing, and most importantly they can work on stuff so that you don't have to (giving you more time to be at work, which may very well result in a greater economic gain to you compared to *not* being at work but saving a few bucks on the commissioner). Also, having an agent in place gives you someone to sue if things go horribly, horribly wrong. I represented myself on my first purchase. It was a ton of work, but I had more time than money at the time. (Under Texas law, *I* also got to collect the buyer's commission, which was great). On my second home, I used an agent. In each case, I think I made the right decision under the circumstances. So to say that there is a "right" answer is absurd, except to say that being cheap on the front end can cost you sooooo much on the back end if things don't go perfectly. However, if you've got a specific property in mind, and assuming you pay for all the usual inspections and such, I might try to work something out with the seller mono-a-mono before employing a real estate agent. Because, in reality, most real estate agents are about as ethical as an attorney; just not as smart. Edited July 3, 2007 by yo mama Quote Link to comment Share on other sites More sharing options...
CaP'N GRuNGe Posted July 3, 2007 Author Share Posted July 3, 2007 If you were looking for a prostitute, would you hire a pimp to find you one? Maybe with the slow market, they'd throw in a couple on a nice 2 story with mountain views. Quote Link to comment Share on other sites More sharing options...
alexgaddis Posted July 4, 2007 Share Posted July 4, 2007 So you don't start salivating when you know you can charge a sucker a bunch of points on a loan? Pot, meet kettle. Exactly. AG acts like mortgage guys are the benchmark for honor. Mortgage guys call our real estate office constantly looking for referrals. Alex I fart in your general direction. As for this thread..If you are the buyer I would use one since its no cost to you. There is a little merit to perchs comment above but its mostly a myth that a seller will seller lower to a person without a realtor since in most cases the commission fee is set. Good luck..I dont have the energy to argue this again. Mercilessly spanking Wiegie last time was exhausting I agree there are PLENTY of shady people in the mortgage business...I am not one of those people...just as Whomper isn't one of the crappy, shady real estate agents... but in general mortgage and financial professionals are much more intelligent than real estate agents... Quote Link to comment Share on other sites More sharing options...
Puddy Posted July 4, 2007 Share Posted July 4, 2007 ...just as Whomper isn't one of the crappy, shady real estate agents... Maybe not, but he ripped me off on some chantilly lace. Quote Link to comment Share on other sites More sharing options...
darin3 Posted July 4, 2007 Share Posted July 4, 2007 I agree there are PLENTY of shady people in the mortgage business...I am not one of those people...just as Whomper isn't one of the crappy, shady real estate agents... but in general mortgage and financial professionals are much more intelligent than real estate agents... I know you're no slimeball, homey, but I can say with 100% confidence that I've met MANY more slimeball mortgage brokers than I have slimeball real estate agents. Quote Link to comment Share on other sites More sharing options...
Chief Dick Posted July 4, 2007 Share Posted July 4, 2007 (edited) If you are the buyer I would use one since its no cost to you. This is not technically true. In all circumstances the BUYER pays all of the commission fees. It comes out of the sellers proceeds, but at the end of the day the buyer is paying this fee. (through their mortgage, cash payment, whatever) The basic deal is this: As a buyer you are paying a commission. If you do not have an agent, the SELLER's agent gets all of the commission. The SELLER's AGENT has a fiduciary responsibility to represent the SELLER, meaning their legal responsibility is to make sure they get whatever they can for the seller. If you employ a BUYER's AGENT, their fiduciary responsibility is to YOU, meaning they are legally responsible to you to make sure you are represented properly, both financially and legally, in the transaction. At the end of the day, you are paying the same commission whether you have a buyers agent or not: meaning you need to hire one that has YOUR interests at heart and not the seller. Edited July 4, 2007 by Chief Dick Quote Link to comment Share on other sites More sharing options...
Riffraff Posted July 4, 2007 Share Posted July 4, 2007 Your friend is an idiot. Assuming they used the seller's appraisal. The appraisal and house inspection are not items you want to "save" money on. Quote Link to comment Share on other sites More sharing options...
whomper Posted July 4, 2007 Share Posted July 4, 2007 Maybe not, but he ripped me off on some chantilly lace. I have chantillys out of Thailand that are under 2 bucks..Im the king of chantillys Quote Link to comment Share on other sites More sharing options...
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