Why is there an agent needed for both the seller and the buyer in real estate? What do realtors actually do?
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You and Timmy are at the playground trading Pokémon cards. You two seamlessly swap the common and uncommon cards.
But then Timmy wants your more valuable holo rare but you can’t come to an agreement between the two of you. You want too much. He’s offering too little.
You agree to go to Timmy’s house after school to discuss further. He says his dad will be there to help make sure he isn’t getting an unfair deal. You call your dad to be there to make sure you aren’t getting an unfair deal either.
Both dads look over the cards before okaying the trades. Sometimes you can have a fair parent who will not take advantage of you for the sake of their kid. But, generally, you should have someone there who is on your side as well.
I am not a real estate agent, nor am I a lawyer…
In the US, I don’t think agents are required in any state, it has simply become the normal way of doing business in an arena fraught with peril for those not trained in it.
But if you find a house you like, you are perfectly entitled to approach the owner and make him an offer. If you know how to do the paperwork to satisfy the local government and the bank–assuming it’s not a cash deal– you usually just need a lawyer to draw up the contract and record the deed.
Good luck in your new home!
Edit: IIRC, buyer’s agents are a fairly new invention, say 35 or so years ago. Before that, typically the only agent involved was the seller’s.
When I was looking to buy my first house I asked around work for agent recommendations. To a person, everyone responded with sort variation of “well, I can tell you who NOT to use”. Seems a lot of people were not fond of their agent.
At this point, they’re providing an errors and omissions insurance policy, and that’d about it. Apart from creating a listing on MLS, which is little more than data entry, they farm everything out to other people (e.g. photographers, inspectors, title companies, etc.), whom you also pay. Then, they take 6% of the value of your single largest asset.
A seller’s agent will prepare the property for sale, which can include helping to stage it, recommending/coordinating repairs, and otherwise getting it good to go. They will then also often host an open house to have prospective buyers come and see it.
A buyer’s agent generally does a lot of research and coordination for their buyers. They know what houses are on the market, what’s going to be on the market soon, when and where the open houses are. They know what likely will or won’t meet their client’s expectations. They have a sense for how “hot” or “cold” the market is and how generally desirable a given property is so they can make recommendations on where to set an offer.
You could do most of this stuff yourself, but it’s quite time-consuming, and you’re not going to be as efficient at it because this isn’t your daily job.
Sure you can sell or buy a house without an agent and pocket some extra money but to me it’s not worth the hassle. For example we just listed a house for sale on Thursday and it’s already had 9 showings with 4 more currently scheduled. My agent is handling all the communication, scheduling, feedback after the showings , collecting the offers, etc. What a drain of time that would be for me, I have a job and can’t imagine doing all that. Not to mention making sure paperwork is in order, the right agreements are signed, etc.
It’s true that an agent wants a fast sale but they are going to make sure you and them get a highest possible. sale fast. We wanted to list the property for $200,000 the agent suggested instead we list for $179,000 which would generate more interest and cause a bidding war. We gave it a shot and already the highest offer is $215,000 so they were right. We never would have thought of doing that I’m a photographer not a salesman.
On the flip side while looking for a house we saw some real nasty For Sale By Owner listings. Horrible photos, gross, unclean, places, asking wayyyy too much than what it was worth. We’re talking listing that have been on the market for nearly a year. And that is why you hire a good selling agent. To tell you that you need to clean your place up and ask a realistic price.
They are low value middlemen that are kept alive by regulation and failure for the market to innovate
Like car dealerships, they have no reason to exist
It’s mostly I am buying the biggest thing in my life, I want an expert to walk me through it. They should ideally tell you certain things like this house is listed at 300K, if you want it you can probably offer 280k, or give the current market youll have to offer at least 320K.
Or maybe you didn’t realize, but this house is close to x which either makes it more or less desirable.
And when you decide to buy or sell they take of it all and just tell you where and when to sign the papers.
Do you need them no, but they offer a service you might want.
And why do you need 2? Well you don’t, but there is a chance of conflict of interest where the same person is both trying to get 1 person to sell as fast as possible and the other to buy as fast as possible
Um, there isn’t! Have bought and sold multiple times, agent always works for seller. Buyer doesn’t use an agent, and Ive never, ever met someone who used one on the buyers end.
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