Author Topic: Selecting a Real Estate Agent as Purchaser  (Read 1253 times)

Glenstache

  • Handlebar Stache
  • *****
  • Posts: 2356
  • Location: Seattle!
  • Target FI date 2027 (maybe?)
Selecting a Real Estate Agent as Purchaser
« on: November 16, 2015, 10:23:06 AM »
I have a two-part question:

What reasons are there to not have a RE agent as a prospective purchaser? Provided there is a property you want to purchase and are comfortable with negotiation, I can see possibly negotiating a lower commission and home sale price by going to the listing agent. The main value I see in an agent is understanding of the logistics, list of people to call for inspections and related items, and understanding of comparisons to know the value of homes on the market (though recent sale history can help with that a lot and is available through site like zillow and most county tax assessor pages).

How would you select a RE agent to represent you? Many people I know selected an agent based on their friend's sister being an agent or some such. This does not seem like a good metric. Neither am I interested in the agent who simply closes the most deals as I'm not sure that means that parties are being well represented (they may be, but I'm not sure that's a good metric).

I have a strong tendency towards DIY, but would like a more experienced opinion of the pros and cons. My take is that the right agent is worthwhile as a purchaser throughout the process.

Drifterrider

  • Handlebar Stache
  • *****
  • Posts: 1118
Re: Selecting a Real Estate Agent as Purchaser
« Reply #1 on: November 16, 2015, 11:55:25 AM »
I was looking for a rental unit.  Using Realtor.com I e-mailed the listing agents for some of the properties I wanted to see.  I ultimately chose to work with an agent that gave me the most useful and complete information about the property she listed AND gave me other properties I might be interested in seeing (whether or not she was the agent).

Some listing agents didn't even bother to reply (some agents are only interested in getting the listing and not really working as they get half the commission anyway).  Some agents replied with basic information but offered nothing further.

When we were interested in selling a property we looked for an agent that had similar properties for sale in the same area and watched how long his listing lasted.  We had him come and give us the selling price for the home (not what he would list it for but what it would sell for) and tell us what we needed to repair and what we needed to ignore.  The house listed July 1.  A couple came to see it July 1.  They made a cash offer of 95% of listing price with no closing assistance (which is usually 3% in that market).  We grossed just over what the listing agent said was the selling price.  Closing was July 31.

Interview Realtors as they ARE your employees.

branman42

  • 5 O'Clock Shadow
  • *
  • Posts: 36
Re: Selecting a Real Estate Agent as Purchaser
« Reply #2 on: November 16, 2015, 11:56:38 AM »
I would like  information on this as well. It is my understanding that when the seller lists with  an agent, that 6 % is going to be paid, so you might as well get representation for yourself, since it costs the same either way. But I would definitely like to learn more.

waffle

  • Bristles
  • ***
  • Posts: 286
Re: Selecting a Real Estate Agent as Purchaser
« Reply #3 on: November 16, 2015, 01:56:12 PM »
I can see getting an agent for selling a property. Their interests would align with yours (getting the best price for the house possible). I don't see how a buyers agent would not have a conflict of interest every time though. They are paid on commission, so wouldn't they want to keep the price as high as possible not get you the best deal?

InvestandChill

  • 5 O'Clock Shadow
  • *
  • Posts: 19
Re: Selecting a Real Estate Agent as Purchaser
« Reply #4 on: November 16, 2015, 11:37:21 PM »
Part 1 of your question: I have only ever bought condos. In these cases, it has been helpful not to come in with a buyers agent on record since I was able to negotiate 2-3% builder's credit by not officially coming in with my own agent.

In reality, I did have an agent but keeping them off record (and disclosing that this was my intention to my agent) kept a wider set of options open for me.

Part 2 of your question: I interviewed single and duo agent teams before making a selection. Their history is important. Have they been part of a singularly record-making deal in your area? Did they negotiate a deal for the highest or lowest price per sq feet that sold or was bought recently? Can you tell that they eat, breathe and sleep comps and price per sq ft trends?

Goodluck on your project!