SHould I use a realtor?

[freshprince1]

Hey guys, here's another question to bounce off you all...

My parents never use a realtor when they buy/sell a house, they say its a lot of work, but you can save thousands. Do any of you have experience buying a house w/o a realtor? Was is worth the money saved? Or is the convenience of using a realtor worth the fee?

Opinions?

I also know there are a few realtor on here, looking for unbiased opinions.


As always, thanks for your input.

[cts]

no

[eina15]

We thought of not using a realtor for listing our house and condo recently, but we're really glad we did, for a number of reasons:

1) More exposure on MLS then on Welist or similar
2) We don't have the time nor desire to do showings.
3) We don't have experience or knowledge about what people want to hear, see etc. at showings. I've also heard its hard for someone to show their own place due to emotional attachments etc. (we'd be showing areas or features of the house that maybe aren't important to buyers)
4) Alot of our showings have been during the day. If we didn't have a lockbox on our door we would have to leave work and drive home to let people in.
5) Alot of times people say they are going to show, and don't. This really pisses me off and I wouldn't handle it well ;)
6) The legal work and knowledge involved in writing offers.

Anyways, just MHO. I really like that its all just taken care of for us.

Good luck either way!

[JRSC00LUDE]

Sometimes it's better to use them and sometimes it isn't (I know that doesn't really help haha). They can save you from some hassles/liabilities but most of them (realtors, not hassles) aren't worth it. Make sure you find a good agent, it's much harder than finding a poor one.

My opinion is biased based on my line of work (10 years +). As a consistent group, nobody knows less about what actually has to be done to transfer ownership of a title than a real estate agent - But they all think they know everything.....I see it every day. :whipped: Mostly, idiots that charge too much to do too little imo (no offense to any on here, but it's true). There are some good ones that actually know what they're doing beyond putting up a sign and grinning like an idiot for a picture. If you can find one, don't lose him/her.

(Commercial agents not included in the above rant, I like them)

[Tik-Tok]

When we bought, neither the the seller, or us, had a realtor, we did have a family member who used to be one, so he told us the ins and outs of what to look for and what to have in the contract though.

It all went smoothly.

When we sell though, I definitely plan on getting one. For all the reasons eina15 said.

[Super_Geo]

Something to keep in mind: A realtor isn't going to try their hardest to get 100% of your home's value in a sale. If realtor A always tried to get 100% of the market value for his clients while Realtor B always tried to get 90% of the market value for her clients who do you think would take home a bigger paycheque? Realtor B!

Like anything, they worry about volume more than milking every penny out of a sale. Think about it this way: Your house is worth $500k and offers are coming in at $480K. If you waited long enough, you could probably get $500k, but what's the motivation from the realtor's position to get you that extra $20k?

Assuming a realtor's fee of 3%, that's only $600 for the realtor, which still has to be split between the other realtor and the agency... so at the end of the day if the realtor pulled out all the stops and got you full value of the house they only stand to gain an extra $200 or so, whereas you stand to gain $19,400.

I think there was a stat in Freakonomics which said that on average realtors keep their own homes listed a few weeks longer than they do for their clients.

That's not to say don't use a realtor, but if they're pushing for a sale that might not be at full value there's a good reason (on their side) why they're doing that.

[01RedDX]

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[freshprince1]

good input.

Note: I am only buying this time as it is our first home, so, more specifically, is a realtor worth using if we're buying only?

[urban.one]

If the seller is using a realtor, then commission will still be paid out to the realtor. This realtor will only act in the interest of the buyer. The realtor may reduce their commission since they will not have to split it with the buyers realtor but they have little incentive to do so. I know some people try to find realtors who will kick back some commission to the buyer if no buying agent is involved but I believe they are not allowed to do this under the terms of a realtors license.


Originally posted by freshprince1
good input.

Note: I am only buying this time as it is our first home, so, more specifically, is a realtor worth using if we're buying only?

[Mangina]

If you're buying, there's no doubt you SHOULD use a realtor.

[old&slow]

Realtors are likely more needed when there's lots of houses for sale. In a sellers market maybe less so!

all opinion and that not informed!

[Ed the SOHC]

You should use a realtor since you're buying. It costs you nothing anyways. The seller pays the realtor fees not you so I can only see positives.

[The Cosworth]

Personally, I would rather spend the money on a professional and know I did things right and got a good price/deal then to try and guess and quite possibly come out ahead, but quite possibly screw the pooch too..

I haven't bought a place yet, but when I do I am thinking I will go through a realtor

[HRD2PLZ]

I am a Realtor, but bias aside if your buying your first property, I would definitely enlist the services of a professional Realtor.

A good Realtor will walk you through the entire transaction and negotiate the best deal they can for you. If you are going to call the listing Realtor's yourself and have them show you the property then the Realtor is in a dual agency situation. In a dual agency situation, it is so hard to be a neutral party. There is always one side that is going to be favored and more often than not, its the seller since the seller and Realtor would have had an established relationship by then.

When buying through the MLS, there is no commissions due directly out of the buyers pocket when represented by their own Realtor.

Money aside, Realtor's trade in real estate on a daily basis and many have specialized expertise and experience in certain area's which are extremely beneficial when it comes to buying or selling.

[01RedDX]

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[Sky]

A hard working and experienced Realtor will save you money on the home you are buying. We are not talking about the ones that have their licence and only doing it part-time. Good Realtors are very knowledgable since it is their job and they are there to facilitate a smooth transaction.

I believe people should be represented. When my mom bought the home we are living in right now, she tried to deal with the sellers Realtor. Ended up going no where and they won't even budge even though they could save some money with no buyer Realtor. We ended up using a Realtor to properly negotiate and closed the deal. The seller ended up paying for our Realtor commission and we got a BETTER deal.

I would definitely use a Realtor to work on your behalf and represent you. They know real estate and its what they do best. Unless you have access to MLS data and is very experienced in real estate, how would you know the offer you're putting in is a good deal? Sellers can ask for whatever they want. I can list my $400,000 home for $600,000 and hope someone will come by and pay $500,000. WOW, that would be a good deal for the buyer is it not? saved $100,000. Realistically my home is only worth $400,000. Thats just an extreme case but you'll be surprised how often it happens when buyers over pay for a home.

Find a good Realtor that will find you a good deal and save you some money. Buyers got the money, sellers home is worth $0 until someone comes along and writes up an offer. Good luck finding your first home:thumbsup:

[freshprince1]

Originally posted by Ed the SOHC
You should use a realtor since you're buying. It costs you nothing anyways. The seller pays the realtor fees not you so I can only see positives.


I was not aware of this, thanks guys. Your input has been a great help. Pretty sure I use a Realtor now.


Beyond saves the day once again.

[freshprince1]

Originally posted by Sky
Find a good Realtor that will find you a good deal and save you some money. Buyers got the money, sellers home is worth $0 until someone comes along and writes up an offer. Good luck finding your first home:thumbsup:

Well put, thanks!:bigpimp:

[TC2002]

Best of luck!

I bought my first home at the end of Summer, and my realtor turned out to be a real douchebag. He knew I was a first time home buyer, and took advantage of that fact. So keep your eyes out for people like that.

Good thing I had a good lawyer who ended up working things out for me.

[freshprince1]

Originally posted by TC2002
Best of luck!

I bought my first home at the end of Summer, and my realtor turned out to be a real douchebag. He knew I was a first time home buyer, and took advantage of that fact. So keep your eyes out for people like that.

Good thing I had a good lawyer who ended up working things out for me.

Thanks for the heads-up, care to elaborate on what happened? What should I be looking out for? I'm meeting with a Realtor this week.

[TC2002]

Originally posted by freshprince1


Thanks for the heads-up, care to elaborate on what happened? What should I be looking out for? I'm meeting with a Realtor this week.


Well, I have to wonder how much information the realtor SHOULD HAVE given me in regards to the offer of sale and stuff like that. For example, I had no idea that I could request having the place professionally cleaned (with the receipt as proof) before I moved in. I wonder what else I could have asked for in the offer.

When I got my place, the carpets were originally beige but was dirty grey, the walls were covered in dirt, she left her dog house and junk in the backyard, an old shovel that is covered with paint and junk, along with her old ratty desk, old blinds, and damaged filing cabinet in the basement.

I'm debating whether to bring her to small claims court because a condition of sale was for her to have the place cleaned and trash removed. Disgusting. My realtor didn't even say anything... "it's yours now" attitude. Then I reminded him of my conditions, then he pulled up his panties and said... "oh... maybe we can ask them to clean, but it's not required."

L-O-S-E-R realtor. My lawyer and I are trying to decide if it's worth the time and money to pursue this into court, and how much I can really get out of her for breech of contract.

[autosm]

^^ did he even do a pre possesion walk through with you ?

[Kloubek]

I've bought and sold a few homes, and this is what I believe:

If you are in no rush to sell a house, it is worth a try attempting to sell it on your own. Sites such as welist.ca (while highly unprofessional) provide a nice venue to test the market. And if you don't sell it, then at least you attempted to save thousands of dollars.

Personally, I sold my last home on one of these sites, and it worked out great and saved me a ton.

When BUYING a house, I *never* go through a realtor. I look in MLS, and contact the representing realtor directly. By all rights, by taking your own realtor out of the equation, you effectively reduce the amount of commission the owner will have to pay. You just have to get the realtor representing the property to tell his/her client that. Then you can reap the savings. Some realtors representing properties figure that if you don't have representation, they should take BOTH commissions. *WRONG*. They want to, because some are greedy. But by all rights, *you* are the one who should save, since *you* are the one who decided not to be represented.

However, there are negatives to not having your own representation. First, you have to be good at negotiating. If you're not, perhaps it is best left to someone who is. Second, you may or may not end up with the savings, as stated above. Third - sometimes your realtor can point out things you would have missed in the place you are buying.... after all, they are profesionals. Next, they probably know the city better, and stats on the markets. If you're doing it yourself, you should know the areas well. Finally, MLS.ca does not have the absolute newest listings. Your realtor might be able to find you a home that suits your need right away. If you wait until it hits MLS, your risk it already being sold.

These seem like a lot of negatives, but if these issues aren't a problem for you then I would certainly recommend buying under your own representation.

[assram]

when buying use a realtor.. sure.. but keep a watch on welist, comfree, etc too..

after you've gone on like 10-20 open houses with a realtor, you can get a general sense of the market / neighbourhoods, what to look for etc.. Kloubek makes a good point above to.. i never thought to ask to save the buyer's commission..

I bought a condo privately because I knew it was way below market price of other units on MLS..

obviously its easier to compare apartment units listed in the same complex than 2 houses on the same street..

In the end, I think the seller made more money, and I saved more..

So for apartments, I might have to say go private... there are just less things to watch out for..

In the last year, prices were soaring.. my parents used comfree to sell a few condo's and made huge profits... for example one sold about 35,000 over asking price on a 1 bedroom place.. and they get it all, commission free..

Of course, last year was unusual, but its something to keep in mind..

[jonnycat]

My realtor saved my butt.

The market in Lethbridge was going up around $1000 / week. We were looking to buy on the west side, and every home in that fit the bill and was in our budget, listed on MLS as available, had either just sold or had offers pending. There was nothing left.

8 months prior he had bought a 4 + 1 bedroom house to use for rental income. Knowing we were out of options he sold us the house which wasn't listed and saved us $23,000 versus comparables.