Buying house without realtors

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UncleLeo
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Re: Buying house without realtors

Post by UncleLeo »

AerialP wrote: Wed Jul 01, 2020 3:07 pm I keep finding these "you don't pay the realtor" arguments to be a matter of mental accounting. Of course you are paying the realtor(s) - their services are embedded in the purchase price. You may not be cutting a check directly payable to their name(s) but surely they are being paid within the process and it will be part of what you are mortgaging.
Exactly. It's like saying you don't pay the dealership when buying a car. you won't pay them directly but the price you're paying has their commission embedded into it. How else would the same car with the same millage and spec be at least 10% less when buying from a private seller.
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UncleLeo
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Re: Buying house without realtors

Post by UncleLeo »

Sorry if it's a dumb question but - how would one go about finding properties for sale not through a realtor? Looking at Zillow, Redfin, etc. 99% of the listings are posted by realtors.
brandy
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Re: Buying house without realtors

Post by brandy »

For Sale By Owner sites/ads /yard signs, maybe google flat fee listers in your area of interest

I hired a Flat Fee lister, paid, IIRC about $300. He provided MLS listing, yard signs, photos, seems maybe something else.
I hired a good inspection company and had the results on the kitchen counter for all to see.
and for one house, did a "5 Day Sale" google it--and was/still am pleased with the results.
I got papers from my title company, those people provided what little guidance was needed, as their paperwork is simple, clear, and state legal.

I just googled flat fee listers, see one says list for $3000. I did NOT, my cost was about $300 as stated above. That was about 10 years ago, not a HCOL area.
here's a link: https://www.byownerflatfeemls.com/
Last edited by brandy on Fri Jul 03, 2020 10:21 am, edited 1 time in total.
stoptothink
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Re: Buying house without realtors

Post by stoptothink »

UncleLeo wrote: Thu Jul 02, 2020 9:59 pm Sorry if it's a dumb question but - how would one go about finding properties for sale not through a realtor? Looking at Zillow, Redfin, etc. 99% of the listings are posted by realtors.
We found our home, which was FSBO, on the "for sale" page of a local newspaper site https://homes.ksl.com/. I believe it was also listed on Zillow, but that's not where we first saw it.
Jags4186
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Re: Buying house without realtors

Post by Jags4186 »

UncleLeo wrote: Thu Jul 02, 2020 9:33 pm
AerialP wrote: Wed Jul 01, 2020 3:07 pm I keep finding these "you don't pay the realtor" arguments to be a matter of mental accounting. Of course you are paying the realtor(s) - their services are embedded in the purchase price. You may not be cutting a check directly payable to their name(s) but surely they are being paid within the process and it will be part of what you are mortgaging.
Exactly. It's like saying you don't pay the dealership when buying a car. you won't pay them directly but the price you're paying has their commission embedded into it. How else would the same car with the same millage and spec be at least 10% less when buying from a private seller.
You can go back and forth on this. I don’t believe that you’re automatically paying 6% extra for buying through a realtor. The price of the home is the price of the home. People use realtors for a variety of reasons:

1) They want to advertise the house without doing any work
2) They want showings of the house when they aren’t available
2) They hope that the realtor is able to negotiate a higher price

These things all cost money. You don’t think a buyer who is buying a FSBO isn’t thinking “I can get this property cheaper because the seller isn’t paying a 6%.”

The truth is likely in between. The FSBO is getting slightly less for a home than they would if they listed with a realtor and is doing significantly more legwork. Do those two things add up to 6%? No way to know.
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jfn111
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Re: Buying house without realtors

Post by jfn111 »

Buying a house without a Realtor is pretty straight forward. Settle on a price, get an inspection, negotiate repairs and then close.
Selling without a Realtor is iffy. I'm working in a low inventory slightly crazy market. It's common for houses to go $10's of thousands over asking price. How is the homeowner setting the price? Using 6 month old comps? How is the seller going to react when the buyer comes back asking for sewer line repair, radon mitigation or any number of costly items?
ScubaHogg
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Re: Buying house without realtors

Post by ScubaHogg »

Dottie57 wrote: Thu Jul 02, 2020 8:40 am
ray.james wrote: Wed Jul 01, 2020 3:40 pm If there is no buyer, the seller has no transaction. So he is the one paying 6%

The buyer then goes ahead with mortgage and pays interest on that 6%. :D

edit: I am not against real estate agents. But I think it should change. Homes are found on redfin. Home report and everything is packaged via docusign. seller, buyer sign via docusign. They settle via escrow account manager. All of them take fixed rates. In what way are real estate agents special that needs percentage ? It is in the same vein as portfolio managers, pay them a percentage irrespective of out performance of index.
My brother and I are selling an inherited home. The real estate agent has been invaluable. She is shepherding us through all the steps. We have a list of 6 items to fix before closing and realtor has contactors/ handy people to fix all.
I hope she is doing more than that. Otherwise you are paying thousands upon thousands (tens of thousands?) for someone to call a few handymen/contractors.
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bberris
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Re: Buying house without realtors

Post by bberris »

daheld wrote: Wed Jul 01, 2020 2:59 pm I personally would never do this. As a buyer, you don't pay the 6%, the seller does. There is no financial cost to you as a buyer for using a realtor.

We bought a home two and a half years ago that seemed simple from the outset. By the time it was done, our realtor, who we've used before and think very highly of, said it was the most complicated transaction and negotiation she's had in 20 years. We didn't pay her a dime since we were buying, but she earned the 3% she was paid from the sale.

A good realtor is worth it, and again, YOU'RE NOT PAYING THEM.
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Re: Buying house without realtors

Post by Dottie57 »

ScubaHogg wrote: Fri Jul 03, 2020 11:58 am
Dottie57 wrote: Thu Jul 02, 2020 8:40 am
ray.james wrote: Wed Jul 01, 2020 3:40 pm If there is no buyer, the seller has no transaction. So he is the one paying 6%

The buyer then goes ahead with mortgage and pays interest on that 6%. :D

edit: I am not against real estate agents. But I think it should change. Homes are found on redfin. Home report and everything is packaged via docusign. seller, buyer sign via docusign. They settle via escrow account manager. All of them take fixed rates. In what way are real estate agents special that needs percentage ? It is in the same vein as portfolio managers, pay them a percentage irrespective of out performance of index.
My brother and I are selling an inherited home. The real estate agent has been invaluable. She is shepherding us through all the steps. We have a list of 6 items to fix before closing and realtor has contactors/ handy people to fix all.
I hope she is doing more than that. Otherwise you are paying thousands upon thousands (tens of thousands?) for someone to call a few handymen/contractors.
She has done a LOT more.

My brother and I had more than enough to do to clear mom’s house. We are not negotiators. For us a realtor is worthwhile.
brandy
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Re: Buying house without realtors

Post by brandy »

"Buying a house without a Realtor is pretty straight forward. Settle on a price, get an inspection, negotiate repairs and then close. Selling without a Realtor is iffy. I'm working in a low inventory slightly crazy market. It's common for houses to go $10's of thousands over asking price. How is the homeowner setting the price? Using 6 month old comps? How is the seller going to react when the buyer comes back asking for sewer line repair, radon mitigation or any number of costly items?"

I used the book "How To Sell Your Home In 5-Days" by Bill Effros.
Google it and related info. All necessary info is (was) in the book, and laid out clearly in an easy to follow format.
here's one link, summarizing this round robin process.
I am not a "sales person" or a "negotiator" and I did it. It was a pleasant experience. And I didn't have to worry about low bids. At the very least, look into it. You'll be glad you did, even if you choose to go another way.
Bobby206
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Re: Buying house without realtors

Post by Bobby206 »

alfaspider wrote: Thu Jul 02, 2020 10:25 am
Bobby206 wrote: Wed Jul 01, 2020 9:28 pm
Murgatroyd wrote: Wed Jul 01, 2020 3:13 pm Consult an experienced real estate attorney
This is the opposite of what you should do. Just connect with a realtor and let the seller pay the fees. Don't overthink it.
Unless the buyer is giving you a gift in the amount of 3% of the value of the house (and why would they do this?), you are 100% paying for the realtor as the buyer. The cash is coming out of your purchase price.

Attorneys have to have an undergraduate degree, spend 3 years in law school, and pass a grueling bar exam. A realtor has no educational requirements other than a few weeks course and passing a ridiculously easy exam. Both may or may not be experts in real estate. Why would you pay many thousands more for a less qualified adviser :confused

Another point is that an attorney has an incentive structure that is better aligned with your interests. A realtor doesn't get paid unless you close. They are incentivized to downplay issues and are strongly disincentivized to tell you to walk away from a bad deal. They also get paid more if you pay more. An attorney that gets paid hourly will get paid regardless of whether the deal closes and how much you pay.
I am an attorney and thus love attorney fees BUT real estate lawyers are great at the nitty gritty of a real estate contract which is rarely at stake in a residential real estate deal. A Realtor is good at shepherding a buyer or a seller to the finish line of a transaction. Attorneys are not.
Bobby206
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Re: Buying house without realtors

Post by Bobby206 »

260chrisb wrote: Thu Jul 02, 2020 9:55 am
Bobby206 wrote: Wed Jul 01, 2020 9:28 pm
Murgatroyd wrote: Wed Jul 01, 2020 3:13 pm Consult an experienced real estate attorney
This is the opposite of what you should do. Just connect with a realtor and let the seller pay the fees. Don't overthink it.
I'm curious to know why you think this? A qualified real estate attorney would likely charge more than a non specific real estate attorney would (mine is not a real estate attorney) but my cost of having her draft a sales agreement was less than $400.00. The sales commissions saved were in excess of 15-20K. I have nothing against realtors but in some instances you simply don't need them as their fees are built into the selling price. I found it odd and very annoying that during my closing one of the reps from my bank who was not my local contact remarked three times about how much money I saved by not having realtor costs in the price of the home. :?
I do not know of any experienced attorney (i.e. one that knows anything) that would touch a real estate sales contract for less than $1,500. For $400 I personally wouldn't even open a new file. I would give free advice, tell you to keep your $400 and refer you to the county bar lawyer referral service where you would get some rookie attorney who knows nothing but would charge you $500 or $1,000. On the other hand, a good Realtor really does do a great job holding a deal together. Lawyers are not good at this at all. In fact, they often wreck deals by being overly-risk averse.
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sperry8
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Re: Buying house without realtors

Post by sperry8 »

jbourne99 wrote: Wed Jul 01, 2020 11:17 pm The main purpose of the realtor is to match a buyer and seller. If you've already done that part than there is little value add for the realtor. You should use a real estate attorney.
Exactly. You will need to have an attorney to write up the contract, a title company to ensure no debts/liens against property so you can buy it and become proper title holder, an escrow company to hold monies until title/contracts are signed, and perhaps an inspector, although this may come before all of the rest.
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criticalmass
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Re: Buying house without realtors

Post by criticalmass »

daheld wrote: Wed Jul 01, 2020 2:59 pm I personally would never do this. As a buyer, you don't pay the 6%, the seller does. There is no financial cost to you as a buyer for using a realtor.
A good realtor is worth it, and again, YOU'RE NOT PAYING THEM.
I disagree. That is like saying your aren't paying federal taxes on gasoline, because it's built into the price and the oil company is paying it. Or (hypothetically, if you weren't a BH style investor) you aren't paying commissions on fee funds, since the mutual fund company is paying them. But who's pocket do you think all of this is coming from in the first place? The consumer, i.e. the buyer.

First, even if you are paying a commission 6% is rather high. Try for 4% or less, if you must use an agent. The buyer has less control over this, and the agents may not even share the breakdown of broker/agent seller/buyer fee schedule with the consumer, although it should be in the (regional monopoly) MLS for an agent to see.

If you can't avoid buying a place with a selling agent, at least use a rebating agent for the purchase. They will pass back (or credit closing costs) a healthy portion of their fee, which can be lucrative for you. There are plenty to choose from nowadays. Just be sure you get everything in writing regarding commissions BEFORE signing a contract to purchase anything using that agent.

Best scenario is if you can work with a buyer without any agent, or an agent willing to work with a fixed fee, maybe $500. But honestly, a real estate agent license isn't the hardest thing in the world to get, although it can take a few weekends of classes. Don't overestimate their value, versus true legal advice and common sense, if you've already bought/sold real estate in your life. Always have an attorney go over your contracts, agent or no agent. In some states you have to use an attorney as part of the closing anyway. And figure out the responsibilities with a settlement/title company.

Finally, save more with discounted title insurance; see other threads for that. You can save money on title insurance in almost every state, even when the title companies claim "every insurer charges the same." That's incorrect as customers of Radian and Title Forward can attest.
confusedinvestor
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Re: Buying house without realtors

Post by confusedinvestor »

Murgatroyd wrote: Wed Jul 01, 2020 3:13 pm Consult an experienced real estate attorney
This.

I did this.
alfaspider
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Re: Buying house without realtors

Post by alfaspider »

Bobby206 wrote: Fri Jul 03, 2020 10:00 pm
alfaspider wrote: Thu Jul 02, 2020 10:25 am
Bobby206 wrote: Wed Jul 01, 2020 9:28 pm
Murgatroyd wrote: Wed Jul 01, 2020 3:13 pm Consult an experienced real estate attorney
This is the opposite of what you should do. Just connect with a realtor and let the seller pay the fees. Don't overthink it.
Unless the buyer is giving you a gift in the amount of 3% of the value of the house (and why would they do this?), you are 100% paying for the realtor as the buyer. The cash is coming out of your purchase price.

Attorneys have to have an undergraduate degree, spend 3 years in law school, and pass a grueling bar exam. A realtor has no educational requirements other than a few weeks course and passing a ridiculously easy exam. Both may or may not be experts in real estate. Why would you pay many thousands more for a less qualified adviser :confused

Another point is that an attorney has an incentive structure that is better aligned with your interests. A realtor doesn't get paid unless you close. They are incentivized to downplay issues and are strongly disincentivized to tell you to walk away from a bad deal. They also get paid more if you pay more. An attorney that gets paid hourly will get paid regardless of whether the deal closes and how much you pay.
I am an attorney and thus love attorney fees BUT real estate lawyers are great at the nitty gritty of a real estate contract which is rarely at stake in a residential real estate deal. A Realtor is good at shepherding a buyer or a seller to the finish line of a transaction. Attorneys are not.
Any decent deal lawyer is looking to get to close. The difference is a lawyer won’t advocate closing if it is not in their client’s best interest. Many realtors will.
Bobby206
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Re: Buying house without realtors

Post by Bobby206 »

alfaspider wrote: Sat Jul 04, 2020 1:47 pm
Bobby206 wrote: Fri Jul 03, 2020 10:00 pm
alfaspider wrote: Thu Jul 02, 2020 10:25 am
Bobby206 wrote: Wed Jul 01, 2020 9:28 pm
Murgatroyd wrote: Wed Jul 01, 2020 3:13 pm Consult an experienced real estate attorney
This is the opposite of what you should do. Just connect with a realtor and let the seller pay the fees. Don't overthink it.
Unless the buyer is giving you a gift in the amount of 3% of the value of the house (and why would they do this?), you are 100% paying for the realtor as the buyer. The cash is coming out of your purchase price.

Attorneys have to have an undergraduate degree, spend 3 years in law school, and pass a grueling bar exam. A realtor has no educational requirements other than a few weeks course and passing a ridiculously easy exam. Both may or may not be experts in real estate. Why would you pay many thousands more for a less qualified adviser :confused

Another point is that an attorney has an incentive structure that is better aligned with your interests. A realtor doesn't get paid unless you close. They are incentivized to downplay issues and are strongly disincentivized to tell you to walk away from a bad deal. They also get paid more if you pay more. An attorney that gets paid hourly will get paid regardless of whether the deal closes and how much you pay.
I am an attorney and thus love attorney fees BUT real estate lawyers are great at the nitty gritty of a real estate contract which is rarely at stake in a residential real estate deal. A Realtor is good at shepherding a buyer or a seller to the finish line of a transaction. Attorneys are not.
Any decent deal lawyer is looking to get to close. The difference is a lawyer won’t advocate closing if it is not in their client’s best interest. Many realtors will.
In my experience with lawyers (which is significant over the last 30+ years) my peers look for reasons to blow up deals generally. Not necessary residential real estate but deals in general. Lawyers are always looking for problems and advising clients of liability which scares clients and causes deals to blow up. By and large attorneys over overly-cautious. For a residential real estate deal most of us are just looking to get to the finish line. Again, I love attorney fees but in my personal opinion I would not use an attorney in one. You do you though!
invest4
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Re: Buying house without realtors

Post by invest4 »

* Real estate attorney - absolutely yes. Relatively cheap and a firewall to making a significant mistake.

* Realtor - absolutely no thanks. Real estate agents / industry exposed and hanging on for dear life on both sides of the transaction (buying and selling). Fees are comical for services rendered imho. Everything can be done yourself with a bit of effort. Of course, some will cling to the traditional way because they may be inexperienced or simply don't want to deal with it.

In regard to the whole seller pays the fees bit...just another shenanigan to ensure more monies are extracted from the principals in the transaction. While I begrudge no one from making money if they can do so, I don't find it in the buyer's or seller's interest to participate as you are absolutely paying for it all, no matter how you want to slice it.
hoops777
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Re: Buying house without realtors

Post by hoops777 »

If I put my Bay Area home on the market it would sell in one weekend.For that I would pay over 50K in commissions to realtors. I do not need a realtor to negotiate or determine a fair price. It is not rocket science. They what you to think it is though.The whole idea of 5 to 6 pct commissions is really ridiculous when you think about it rationally.
K.I.S.S........so easy to say so difficult to do.
Kookaburra
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Re: Buying house without realtors

Post by Kookaburra »

For those who bought without an agent and were able to negotiate ~3% off the purchase price (b/c of the avoided commission), how would this work for new construction in a community where the builder wouldn’t want to reduce the sales price because that would set a lower sales comp for other new homes in the community that they are trying to sell?
7eight9
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Re: Buying house without realtors

Post by 7eight9 »

Kookaburra wrote: Sun Jul 05, 2020 1:46 pm For those who bought without an agent and were able to negotiate ~3% off the purchase price (b/c of the avoided commission), how would this work for new construction where the builder wouldn’t want to reduce the sales price because that would set a lower sales comp for other new homes in the community that they are trying to sell?
Typically in that situation I've seen developers provide upgrades in lieu of discounting the price of the property.
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averagedude
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Re: Buying house without realtors

Post by averagedude »

We sold a family house last year without a realtor. We had 3 realtors look at the home and each gave us a market assessment of the property. We sold the house "as is" to someone we knew and we took 9% off (6% fees, 3% expected maintenance issues and typical home price negotiating} of the recommended listing price that the realtors gave us. We got probably the same money if we had a realtor with less haggles, and the buyer got the house at least 6% cheaper. In this case, both parties were winners and the buyer got 100% of the cost savings of not having a realtor.
Dug
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Re: Buying house without realtors

Post by Dug »

Another point of savings is the annual property taxes for the buyer and reduced capital gains for the seller.
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Re: Buying house without realtors

Post by boomer_techie »

hoops777 wrote: Sun Jul 05, 2020 1:30 pm If I put my Bay Area home on the market it would sell in one weekend.For that I would pay over 50K in commissions to realtors.
My greater Bay Area neighbors just sold their home in under a week, before they had a full set of photos taken, during the pandemic lockdown. Using a real estate agent.

The only price/feature competition in the neighborhood is a FSBO. The fizbow has been for sale since before the pandemic. Had they used an agent, I suspect it would have been under contract before the lockdown.
Van
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Re: Buying house without realtors

Post by Van »

I have bought 2 houses without a real estate company being involved. The paperwork is all done by the Title company (Abstract company) in some places. You don't need a real estate agent to hold your hand.
fortunefavored
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Re: Buying house without realtors

Post by fortunefavored »

I'm very interested in these threads, since I have at least 3 home transactions in the next 3 years (buy, sell, sell - all around $1M)

My first step is to buy - but I've noticed when approaching selling agents, they just seem to want to keep both ends. The market is of course insanely hot - most houses selling within days and over list.

Is there some magic incantation you need to say in order for them to take a non-buyer-agent seriously? I get that the Realtor(tm) is a cartel and they will do anything to protect their monopoly - but it seems like they should have an obligation to bring forth an offer even absent the 3% buyer extortion. Is it just more work for them to write out the 3%? I don't understand the mechanics.

Also anyone replying to this thread: Please disclose if you are in the real estate industry or benefit from it. This should also be a basic ethical guideline but it is often not obvious until later ("oh and my wife is a realtor")
hoops777
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Re: Buying house without realtors

Post by hoops777 »

boomer_techie wrote: Sun Jul 05, 2020 5:30 pm
hoops777 wrote: Sun Jul 05, 2020 1:30 pm If I put my Bay Area home on the market it would sell in one weekend.For that I would pay over 50K in commissions to realtors.
My greater Bay Area neighbors just sold their home in under a week, before they had a full set of photos taken, during the pandemic lockdown. Using a real estate agent.

The only price/feature competition in the neighborhood is a FSBO. The fizbow has been for sale since before the pandemic. Had they used an agent, I suspect it would have been under contract before the lockdown.
Agents only want to show their clients homes that the agents make a nice commission on. That is the problem with realtors. Their best interest is themselves and not their client. In the year 2020 it is true a fsbo home will have less eyeballs for sure.By the year 2025 probably a big change.
K.I.S.S........so easy to say so difficult to do.
alfaspider
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Re: Buying house without realtors

Post by alfaspider »

Bobby206 wrote: Sun Jul 05, 2020 9:58 am
alfaspider wrote: Sat Jul 04, 2020 1:47 pm
Bobby206 wrote: Fri Jul 03, 2020 10:00 pm
alfaspider wrote: Thu Jul 02, 2020 10:25 am
Bobby206 wrote: Wed Jul 01, 2020 9:28 pm

This is the opposite of what you should do. Just connect with a realtor and let the seller pay the fees. Don't overthink it.
Unless the buyer is giving you a gift in the amount of 3% of the value of the house (and why would they do this?), you are 100% paying for the realtor as the buyer. The cash is coming out of your purchase price.

Attorneys have to have an undergraduate degree, spend 3 years in law school, and pass a grueling bar exam. A realtor has no educational requirements other than a few weeks course and passing a ridiculously easy exam. Both may or may not be experts in real estate. Why would you pay many thousands more for a less qualified adviser :confused

Another point is that an attorney has an incentive structure that is better aligned with your interests. A realtor doesn't get paid unless you close. They are incentivized to downplay issues and are strongly disincentivized to tell you to walk away from a bad deal. They also get paid more if you pay more. An attorney that gets paid hourly will get paid regardless of whether the deal closes and how much you pay.
I am an attorney and thus love attorney fees BUT real estate lawyers are great at the nitty gritty of a real estate contract which is rarely at stake in a residential real estate deal. A Realtor is good at shepherding a buyer or a seller to the finish line of a transaction. Attorneys are not.
Any decent deal lawyer is looking to get to close. The difference is a lawyer won’t advocate closing if it is not in their client’s best interest. Many realtors will.
In my experience with lawyers (which is significant over the last 30+ years) my peers look for reasons to blow up deals generally. Not necessary residential real estate but deals in general. Lawyers are always looking for problems and advising clients of liability which scares clients and causes deals to blow up. By and large attorneys over overly-cautious. For a residential real estate deal most of us are just looking to get to the finish line. Again, I love attorney fees but in my personal opinion I would not use an attorney in one. You do you though!
I’m mostly a deal lawyer myself (Tax). It’s our job to look for problems, but I’ve never seen a lawyer intentionally blow up a deal. A good lawyer finds the problem and advises on the impact from an objective perspective as possible. It’s up to the client to decide how to react. A realtor will usually just sweep a problem under the rug in the unlikely event they find one.
averagedude
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Re: Buying house without realtors

Post by averagedude »

Whenever their is a huge load, commission, or fee rendered for a service, expect some pain in the anal or wallet region.
jima
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Re: Buying house without realtors

Post by jima »

Last two transactions I did it all 100% myself. In my state (like most) the contracts are extremely easy fill-in-the-blank generic templates that anyone can fill out. My advice is to get the contract, look for some guidance on how to fill it out for your state, and if it still looks intimidating then you need a real estate agent. If it looks straightforward then likely you can do it on your own. In most cases the title company will do a lot of hand holding as well and is where the closing will take place.

It will vary by market on how much you can "save" by going this route. When I sold my last house I didn't use an agent and the buyer didn't have one either. I kept expecting them to ask for a discount, but they paid asking price and so I saved the full 6%. When I purchased the next place, the seller had an agent so I wrote into the contract that 3% would be applied to closing costs. Seller agreed to that. Again, may vary if you are shopping in an extremely hot market, but usually doesn't hurt to ask. Sometimes a verbal conversation with the seller or their agent will give you a lot of information on what a realistic offer is before you write up the contract.

Agree that as long as you get a good inspection and have a good title company those are the most important pieces. The real estate agent provides emotional support and saves you from having to Google answers to a question.

Edit to add: If selling, getting your home on MLS is really helpful. You can find various services that will do that for you (usually around $300 fee). If you aren't in a hurry, you can also self-list on Zillow for free. That is not MLS, but they have a wide audience and may be all you need to get a buyer.
CycloRista
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Re: Buying house without realtors

Post by CycloRista »

Dottie57 wrote: Fri Jul 03, 2020 3:03 pm
ScubaHogg wrote: Fri Jul 03, 2020 11:58 am
Dottie57 wrote: Thu Jul 02, 2020 8:40 am
ray.james wrote: Wed Jul 01, 2020 3:40 pm If there is no buyer, the seller has no transaction. So he is the one paying 6%

The buyer then goes ahead with mortgage and pays interest on that 6%. :D

edit: I am not against real estate agents. But I think it should change. Homes are found on redfin. Home report and everything is packaged via docusign. seller, buyer sign via docusign. They settle via escrow account manager. All of them take fixed rates. In what way are real estate agents special that needs percentage ? It is in the same vein as portfolio managers, pay them a percentage irrespective of out performance of index.
My brother and I are selling an inherited home. The real estate agent has been invaluable. She is shepherding us through all the steps. We have a list of 6 items to fix before closing and realtor has contactors/ handy people to fix all.
I hope she is doing more than that. Otherwise you are paying thousands upon thousands (tens of thousands?) for someone to call a few handymen/contractors.
She has done a LOT more.

My brother and I had more than enough to do to clear mom’s house. We are not negotiators. For us a realtor is worthwhile.
Know the challenge of clearing out parents homes all too well (and being the executor of estates). Not an easy job.

I have used an agent (and settlement attorney) for all of the homes I've bought and sold for a number of reasons:

Asking prices were spot on every time in my opinion. Three of the four homes I've sold received an offer within a few weeks of being listed (and one received an offer the night before the listing went live).

Brought perspective and experience to close deals. I've watched friends, colleagues and neighbors homes sit for months (and in extreme cases multiple years) because they priced too high or turned down a very good offer, not far off of the asking price.

Recommended reliable, cost-effective and efficient colleagues to lay down carpet, paint, fix various things around the house and yard.

Dealt with pain from sellers for example:

Home inspector (who my agent referred) red-tagged the gas furnace after the seller ignored his warning to get it fixed. It had to be replaced at the sellers expense and my agent dealt with the static from that and then every minor detail they tried dinging us on leading up to closing. (I had a very demanding job and was traveling 2+ weeks per month at that time so it was worth every penny to have someone else as a "buffer").

Another seller kept looking for any excuse to walk away from the offer he accepted and my agent kept on him like a pit bull. I crafted the lower-than-asking-price offer and sent my agent to deliver it. He was very pessimistic about the odds of success and managed to get the buyer to agree. At the closing we literally sat and no one said a word for 15+ minutes. I would probably have lost patience before we even made it to closing (and sure glad I didn't- still live in that home and it has appreciated quite a bit).

...and from buyers:

Sold my mother's home for cash (over our asking price, that was just about to go listed/live). The buyer relentlessly chiseled us for deductions all the way up to closing. My sister and I were exhausted from clearing out all of the accumulated antiques and other items (which took nearly 3 months) and were happy to have the agent run interference.

My wife and I live 4 hours away from her parents home (which we are in the process of selling) and her sibling lives 6+ hours away.

6% is negotiable... :mrgreen:
bberris
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Re: Buying house without realtors

Post by bberris »

xerxes101 wrote: Thu Jul 02, 2020 11:02 am
Murgatroyd wrote: Wed Jul 01, 2020 3:13 pm Consult an experienced real estate attorney
^^^ +1 be careful you are entering into a legally binding contract and while I agree that saving that 6% sounds attractive, you have no protection if you do this without an attorney.
Except that a real estate salesperson cannot give legal advice unless they are lawyers. So if it's legal advice you are needing, that has nothing to do with hiring a sales agent.
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beernutz
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Re: Buying house without realtors

Post by beernutz »

I have both bought a home and sold a home without a real estate agent involved. I've also bought and sold two other homes using them so I know the difference.

I truly lol at some of the responses on this thread which are clearly from realtors or "friends" of realtors.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. --Will Rogers
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jfn111
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Re: Buying house without realtors

Post by jfn111 »

beernutz wrote: Wed Jul 08, 2020 7:46 pm I have both bought a home and sold a home without a real estate agent involved. I've also bought and sold two other homes using them so I know the difference.

I truly lol at some of the responses on this thread which are clearly from realtors or "friends" of realtors.
One of the reasons I like this board is there are a lot of confident people. We have people that change their own oil in their cars. Others, that rebuild their own motors. We have people that do all their own plumbing, electrical and HVAC. We have posters that cut their own hair and a few that drill their own cavities.
There is a group think to insult Lawyers, Doctors, Financial Advisors and RE Agents. You go ahead and LOL whenever someone uses a professional but a lot of people don't have the skill, confidence or time to do all these things on their own.
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beernutz
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Re: Buying house without realtors

Post by beernutz »

jfn111 wrote: Wed Jul 08, 2020 9:09 pm
beernutz wrote: Wed Jul 08, 2020 7:46 pm I have both bought a home and sold a home without a real estate agent involved. I've also bought and sold two other homes using them so I know the difference.

I truly lol at some of the responses on this thread which are clearly from realtors or "friends" of realtors.
One of the reasons I like this board is there are a lot of confident people. We have people that change their own oil in their cars. Others, that rebuild their own motors. We have people that do all their own plumbing, electrical and HVAC. We have posters that cut their own hair and a few that drill their own cavities.
There is a group think to insult Lawyers, Doctors, Financial Advisors and RE Agents. You go ahead and LOL whenever someone uses a professional but a lot of people don't have the skill, confidence or time to do all these things on their own.
Where did I insult anyone?
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. --Will Rogers
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