Realtor related Questions

[ROY DUBOSE]

Originally Posted by Mikey0915

On selling side it may make sense but I am talking about the buying side. 3% of the Home price seems a lot of money to me without clear accountability. It will be good if some one can detail the breakdown. I am not seeing it yet.

a good buyer's agent does as much or more than a listing agent -- they've got to insure all buyer deadlines are met, manage the "back office process" with the title company and lender, keep a nervous client up to speed with any/all issues that may impact the transaction, schedule inspections, and insure the seller's agent covers all the seller's responsibilities as well -- let's not forget a good buyer's agent doesn't simply prepare an offer for what the seller's have the house listed for -- there's lots of serious legwork that has to be done!

[inthecut]

Originally Posted by ROY DUBOSE

a good buyer's agent does as much or more than a listing agent -- they've got to insure all buyer deadlines are met, manage the "back office process" with the title company and lender, keep a nervous client up to speed with any/all issues that may impact the transaction, schedule inspections, and insure the seller's agent covers all the seller's responsibilities as well -- let's not forget a good buyer's agent doesn't simply prepare an offer for what the seller's have the house listed for -- there's lots of serious legwork that has to be done!

Did it for 10 years full-time.....what all the buyers agents did, including myself....

90% time driving around showing houses....10% paperwork...

So basically buyers agents are tour guides who write contracts...
funny, but true.......

"This is the kitchen....this is the backyard......". ad infinitum...

[CATXTransplant]

Looks like you weren't a very good agent then. Probably why you're no longer in the business.

[Trainwreck20]

My realtor processed comps for every house that we were serious about, and was able to explain what prices varied from area to area and why some sales were not relevant as comps. He was also an excellent 'pre' inspector for us, which although we were capable of doing, we did not always think to do. He could point out old AC units, possible plumping/wiring issues based on the era/area that the house was built, and and he also had an almost photgraphic memory, I think - any house he had shown before, he could list off the issues and or the +/-'s that had come up before. He was very tuned in to the whole process, and saved us a lot of stress and time.

The realtor I had before that one was a 'smile and point' realtor, and she lasted about a day before I went looking for better.

[inthecut]

Originally Posted by CATXTransplant

Looks like you weren't a very good agent then. Probably why you're no longer in the business.

No, just tired of it......simply got old.....and got tired of working 100% commission, especially when times were slow(even for good agents!)....
I wasn't on the bottom or top..just a steady 50K or so, but I had a lot of free time, which is why I did it in the first place....have great memories of just taking off for a week or two on the spur of the moment for a trip or such.......or just hanging out at the beach/hiking/whathaveyou because I felt like it..could have worked really hard and made more I suppose....

Per the buyers angle...in the metro I came from, experienced agents primarily worked with sellers, and left the buyers side to the newer agents.......prob with buyers is no guarantee of anything if they don't buy.....working with someone for 2-3 months with nothing to show for it converts many agents to listing side agents quick...

Austin is different, in that it is growth/relo orientated in a large way, so Buying side activity is lucrative...my area was static in Chicago, so was quite different.......why didn't I get a real estate license in Austin? Again, just tired of it, have my own unrelated biz I brought down here, and feel there are far too many agents in Austin now anyway....

[ROnelson]

I have worked as a buyers agent for the past 10 years. If you ask me why do sellers pay me 3% my answer is "we really only make 1%". My expenses knock 3% down really fast. I don't have payed health care or other perks that most take for granted. The IRS takes me for a long ride down a dark road every April. Try my job for one year and you wouldn't be asking for a reduction on something you don't pay for.

I have two buyers that have been looking for over two years. We have developed a good relationship and I am commented to finding them a perfect house for that perfect price. All that time and work with no pay checks is hard but at the closing table my feel of accomplishment is well worth it.

[austin-steve]

Originally Posted by Trainwreck20

My realtor processed comps for every house that we were serious about, and was able to explain what prices varied from area to area and why some sales were not relevant as comps. He was also an excellent 'pre' inspector for us, which although we were capable of doing, we did not always think to do. He could point out old AC units, possible plumping/wiring issues based on the era/area that the house was built, and and he also had an almost photgraphic memory, I think - any house he had shown before, he could list off the issues and or the +/-'s that had come up before. He was very tuned in to the whole process, and saved us a lot of stress and time.

The realtor I had before that one was a 'smile and point' realtor, and she lasted about a day before I went looking for better.

That's a real good overview of just one of the many things a good buyer agent does.

Essentially, since many buyers, especially relos, don't know what they don't know, it's up to the buyer's agent to set the context and the expectations, such as the code and condition aspects that will show up on the inspection report of any home built in the 1980s or older, pointing out "misfit" attributes that will make a home a difficult resale, knowing the schools (including pending boundary changes that may change the value later), commute times, area amenities, etc. But also just skills needed to effectively negotiate the best deal, which of course requires knowing value, which, sadly, many Realtors don't know how to properly ascertain.

Steve

[Schnaiy]

InTheCut I love your photos that are posted with your messages
Always manage to make me break into a smile or giggle.

As always, there are so many factors to consider when you are buying or selling property (I know I've bought and sold more than 20 properties...most with a realtor, but not always).
I've always bought in locations that were affordable for me to invest in property (rejuvenating/older communities) which were becoming desirable as older residents moved out and younger families moved in: location, location, location. I'm not talking about "fixer/uppers", unless you are in construction, I don't think that's a good option. Always find out if you can why the seller is selling, knowledge is power - sometimes the seller is desperate and will agree to pay all commissions and contribute to your closing costs. Example - I bought a condo in Houston and only had to put down $500 total - the seller agreed to the clause I added into the contract (yes, you the buyer can add in clauses to the terms of the contract) because he wanted and needed to sell. That clause stated that he would pay $3000 towards my closing costs (I prefer to state the amount rather than a percentage, which is common practice). It meant that the "prepaids" to establish the escrow account (and a large part of my closing costs) was at the seller's cost. If you know nothing about adding in clauses that benefit you: the buyer only - then I would advise you to engage a Buyer Agent - that agent will be worth the commission (which you don't pay anyway, the Seller is paying their commision, you pay nothing). People make the mistake of not making their agent work for the commission. A good agent will save you thousands of dollars by negotiating a lower price and negotiating better terms that suit you. A weak Buyer's Agent lets the Seller's Agent dictate all the terms! The exception is foreclosures - often banks won't pay any commission, so you end up having to use alot of upfront cash.

It sounds like the OP is buying new. If you're buying a new construction home from a builder - this is a buyer's market you shouldn't be paying the builder's listed price. Often the best deal is when they have "stock" that is completed and unsold. In this market they should be willing to give you thousands of dollars worth of free upgrades and drop the list price. But the catch is to get it all put into the Purchase/Sales Contract - specify, specify exactly what upgrades. I had a situation where we contracted for a new construction, it was a great deal, then when the builder was putting in the upgrades, they tried to extort more money from us to close the deal: that is illegal! So it came down to a stalemate, we refused to pay more, and they wouldn't go to closing. They tried to keep our earnest money - but refunded it after we threatened suing for the value of the contract as they clearly were in breach of contract.