basically: why would someone need a realtor to BUY a house?
i understand that to buy a house, you (buyer) give some money to the owner (seller) in the form of a down payment and essentially get a loan from the bank (mortgage), and then pay that loan back to the bank over the course of years (decades).
for selling a house, i get that you’d want someone to put up the listing and pull connections to get the word out to buyers.
but for buying a home, where do the realtors come in and why does everyone say you need to get one to be a serious buyer?
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They give access to some of the homes that you may not know are for sale. We were able to knock out like 8 houses in a couple hours. They have information that we didn’t know about the properties. They guided us through a home inspection, if the house is up to code, and if there is a lean on the house. Things like that. We were out of the country when the sale went through and all we had to do was sign documents online and they took care of the rest.
I moved to the US from UK where realtor fees are 1-2%. Can anyone justify the 6% in the US? $60k seems like A LOT of money for a few dozen (?) hours selling a $1m home.
If someone spends 40 hours showing a house to 40 people, and only the 40th person buys the house, should the broker be paid for 40 hours or for 1 hour? If you believe the other 39 hours dont count, then you are probably the type of homeowner who does not want to sell using a broker. So either you pay someone to do it, or you have to do the work yourself.
It’s the difference between having a travel agent and planning your trip yourself. Depending on what you are after and where you are going, you might want them and you might not. Also, if you are looking at a house on Zillow, most of them have been listed by a realtor. That’s a realtor who is working for the seller. Their goal is to get the most money they can from you on behalf of their client. It’s like going into a negotiation with someone who has a lawyer and you don’t. They can be very helpful to have on your side. Like lawyers, though, there are some shitty ones out there. Some can be great, though. My mother did it for a number of years but quit because it was a lot of work. Showing houses nights and weekends, visiting every property so that you know where they are (before GPS), interviewing home owners to learn details about the homes, etc. People will ask all kinds of questions about homes when viewing them. She had to try to know when a remodel has been done, how old the plumbing was, etc. Sure the homeowner could answer those questions themselves, but most don’t want to give up their evenings and weekends for months giving tours of their house and answering a hundred questions.
You do not need a realtor to buy a property. They are a waste of money. You can do your own research on Zillow etc and market on CL or some local forums. I have sold 3 properties myself using a real estate lawyer to do the paperwork. The last property I sold the realtors said list it for $520k and it will bid up to $560k or so. Listed it at $700k and sold it in two days. All cash offer with zero contingencies. 6% of $700k for the realtors to split of my lawyer charged me $800.00 for everything. You can do the math…
Realtors help buyers find potential homes, negotiate the price, and handle the legal paperwork. They also have access to exclusive listings that aren’t available to the public. Overall, they make the home-buying process smoother and less stressful.
Buying a house is complicated, far far far more complicated than buying a stereo. Far far more complicated than buying a car. There are contracts and terms between you and the bank, between you and the buyer, and there are exceptions and deadlines. If the bank doesn’t see this and than done they won’t give you the money, if the sellers have a contingency in the contract that says the sale is dependent on them closing on their house, everything can fall like a stack of dominoes. So having someone that has dealt with all this can help make sure everything is successful.
They also may have connections in terms of houses that are just about to go on the market and may be able to show you houses you wouldn’t otherwise know about.
As a buyer, an agent is somebody who represents you and your interests in the process. Buying a home is an often overwhelming process most people do only a couple times in their life while an agent does this for a profession.
First, they arrange showings of homes you’re interested in, setting viewings with sellers agent or getting direct access. They can give their opinion on the home, pointing out benefits or negatives you may miss; its features, estimate repairs/renovation of any work needed; and they help negotiate the correct price and present the best offer possible. Again, it’s knowing comps, knowing how market is pricing homes (are sellers typically accepting below asking offers, or are they pricing low to fuel bidding wars, etc.) and offering guidance on contingencies, closing timelines, and other factors that may play into having the winning offer or not.
And then once you’re under contract they’re also a resource for all the next step, from lining up inspectors, perhaps getting work estimates, helping push through everything to get mortgage approved, etc. The amount of work to be done in 30 days is overwhelming so to have a professional who knows all the steps, knows people, etc. is a huge benefit.
Realtors are helpful when buying a home because they have access to the Multiple Listing Service (MLS), which is a database of homes for sale in a given area. This means they can help you find homes that fit your criteria and budget. Additionally, realtors can help negotiate the price and terms of the sale, as well as guide you through the paperwork and legal aspects of the process. While it’s not required to use a realtor when buying a home, it can make the process smoother and less stressful.
Getting cartel like sales fees that definitely don’t represent the value added for anything but the cheapest of homes.
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