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Answers (20)
Best Answer
- Realty1Point5
- Contributions:49
HouseDudePie:
I know in our state you are not able to receive any commissions unless you are licensed.
I don't agree with the fact that your license would get in the way of doing your own deals. The majority of real estate deals have two licensed agents involved, it just so happens you don't have any buyers with you. The information you find would be the same information you would be showing your buyers.
But, it sounds like quite of few people told you that, so the best way to interview an agent is to simply ask them scenario questions. If you have bought many houses before this, you know how you like it done and you have precise expectations for a real estate agent.
For example:
If you only like to communicate through e-mail and text and the potential agent takes a day to answer and e-mail and doesn't know what text is, then you have a problem.
Here are some example questions:
If I were to e-mail you an address to get statistics, how long does it take for you to respond?
How long are your exclusive buyer's agreements? (If they say six months and don't offer anything else up front - that's a red flag) We always like to give the option to the buyer, because ultimately we have the obligation to live up to your expectations - so it can be 3 days or 3 months, it's up to YOU.
Ask them what would happen if you want to cancel your agreement? (It's ultimately up to the broker, but it's very easy to cancel) I always say that it will be cancelled if you are not satisfied - I will want to know what I am not doing, but there is no reason to work with someone who is not meeting your expectations after you have explained them.
Then, rely on your gut feeling. Although there are some agents who unfortunately give all of the agents a bad reputation, there are some very good ones out there.
Sorry for the novel. Hope this helps! :-)
I know in our state you are not able to receive any commissions unless you are licensed.
I don't agree with the fact that your license would get in the way of doing your own deals. The majority of real estate deals have two licensed agents involved, it just so happens you don't have any buyers with you. The information you find would be the same information you would be showing your buyers.
But, it sounds like quite of few people told you that, so the best way to interview an agent is to simply ask them scenario questions. If you have bought many houses before this, you know how you like it done and you have precise expectations for a real estate agent.
For example:
If you only like to communicate through e-mail and text and the potential agent takes a day to answer and e-mail and doesn't know what text is, then you have a problem.
Here are some example questions:
If I were to e-mail you an address to get statistics, how long does it take for you to respond?
How long are your exclusive buyer's agreements? (If they say six months and don't offer anything else up front - that's a red flag) We always like to give the option to the buyer, because ultimately we have the obligation to live up to your expectations - so it can be 3 days or 3 months, it's up to YOU.
Ask them what would happen if you want to cancel your agreement? (It's ultimately up to the broker, but it's very easy to cancel) I always say that it will be cancelled if you are not satisfied - I will want to know what I am not doing, but there is no reason to work with someone who is not meeting your expectations after you have explained them.
Then, rely on your gut feeling. Although there are some agents who unfortunately give all of the agents a bad reputation, there are some very good ones out there.
Sorry for the novel. Hope this helps! :-)
- Jackie Beardsley, "Listingforless"
- Contributions:163
If you contact a listing agent they can not act as your agent unless you agree to 'dual agency' and sign the legal document stating so. There are great agents out there. You must first make a commitment to one that will represent you as their 'designated agent'. It is not in your best interest to be calling different agents. I think once you find the right one you will realize not all agents are the same!
- Aram Arakelyan, "aarake6533"
- Contributions:15
Get a Real Estate license. Then you can represent yourself and SHARE 3% or LESS with your broker.
Aram Arakelyan
[removed by Zillow moderator]
Aram Arakelyan
[removed by Zillow moderator]
- Michael Crowley, "Buyers Broker"
- Contributions:8
Lots of different answers here, you can always represent yourself, but in most states to ask to be compensated for such would probably be a licensing violation if you did not have a license, there are also civil liabilities in the event you attempt to interfere with an exisitng written cvontract between the seller and their agent, this known as Tortious Interference (spelling?). Yes, by representing yourself, you give the listing agent the opportunity to be paid up to twice as much, and probably money well earned for the job of keeping you from being professionally represented.
Are all Realtors worth the money you pay? No. Are all Doctors? Lawyers? Hotels? Restaurants? Nope, Nope. Nope. And Nope! Do your research. The number one advised plkace to search for a buyers agent according to the US Department of Housing, and Consumer Reports, and financial advisors Dave Ramsey and Suze Orman would be at the National Association of Exlcusive Buyer Agents (www.NAEBA.info).
Yes, I am biased towards it, as it's current President, but so are most financial experts.
Are all Realtors worth the money you pay? No. Are all Doctors? Lawyers? Hotels? Restaurants? Nope, Nope. Nope. And Nope! Do your research. The number one advised plkace to search for a buyers agent according to the US Department of Housing, and Consumer Reports, and financial advisors Dave Ramsey and Suze Orman would be at the National Association of Exlcusive Buyer Agents (www.NAEBA.info).
Yes, I am biased towards it, as it's current President, but so are most financial experts.
- Michael Liew, "MichaelLiew"
- Contributions:33
Well it doesn't matter if you offer the agent 10%, the seller is the one making the final decision not the agent.
The only problem with buying the house yourself, is that you don't have anyone on your side if negotiation goes bad. It is nice if you have a reasonable seller, but you don't know how bad some sellers could be especially when money is involved. You get emotionally involved and then common sense goes out the window and then it is a matter of pride and who can win at any cost. It is always nice to have a buffer between you and the seller.
The only problem with buying the house yourself, is that you don't have anyone on your side if negotiation goes bad. It is nice if you have a reasonable seller, but you don't know how bad some sellers could be especially when money is involved. You get emotionally involved and then common sense goes out the window and then it is a matter of pride and who can win at any cost. It is always nice to have a buffer between you and the seller.
- hpvanc
- Contributions:2570
Hopefully the DOJ will wake up to the blatant anti-trust violation of allowing listing agents to coerce sellers into setting the compensation for the "buyers" agent at the going rate that "Buyers Agents" will accept.
Until then your only recourse seems to be, to try to negotiate the buyers agent commission out of the contract, or to get your agent or (broker if feasible) knowing that it will be off putting to some sellers.
Until then your only recourse seems to be, to try to negotiate the buyers agent commission out of the contract, or to get your agent or (broker if feasible) knowing that it will be off putting to some sellers.
- Wil May, "Wil May"
- Contributions:12
You need to find an agent that specializes in working with investors. Different clients have different needs, An agent may be excellent at helping first time buyers, but that does not mean they have the experience to assist an investor client. In my experience very few agents who specialize in owner occupant cleints have any idea what a cap rate is, or how to calculate it, and without that type of knowledge and experience I dont see how they can serve a serious investor client. My suggestion is to seek out a local investment club and you should be able to find a few Realtors there who understand your needs and will be able to help you. check out this site It is a great club that meets once a month and there are several agents that can help you there. Even in Yuba City www.ccwealthbuilders.com
- Realty1Point5
- Contributions:49
In my professional opinion, it sounds like you need to get your real estate license. Hang it at an office that does 100% commissions and you could easily charge a flat fee to the seller's instead of doing the 3%. That will take away any problems the seller's might have for working with an agent directly, it's all about saving money. Usually there is a brokerage fee, so you could use the flat fee to pay for that or just make that your flat fee.
There are so many ways to do it, but it sounds like the best decision for you would be to get your own license.
Hope this helps!
There are so many ways to do it, but it sounds like the best decision for you would be to get your own license.
Hope this helps!
- HouseDudePie
- Contributions:6
After hearing what everyone has had to say I think I see what you are saying how having a good realtor is better than worrying about the 3%. My main problem with this is/was is I have hired 3 different realtors for 3 different investments and none of them has been any help at all. They got their 3% for spending 5 minutes showing me a house that I found on my own and filled out some paperwork I can get at the national association of realtors on my own.
I had done one purchase with NO realtors at all involved and it was a wonderful process. I went back and forth with the seller directly negotiated myself, hired a title company and an escrow company to do paperwork and was done, saving both the seller and me money.
My rationale for acting as my own agent is not necessarily tied to saving that 3% but because I don't like working with a person whos paycheck is defined by how expensive the house i buy is. However using the rationale of trying to find a good agent, is it ethical or even legal to offer the buyer agent a bonus based on how much they save you? In other words if I tell the buyer agent I will give him 4% of anything he saves me below the asking price, would that be legal? Or even when there is a deal out there that needs finding, I found a house that was abandoned, tracked down the owner, and ended up buying the house for about 10% of its appraised value. If I hired a realtor to find deals like that and paid him a % based on the appraised value instead of the buying price?
Thank you for your thoughts
I had done one purchase with NO realtors at all involved and it was a wonderful process. I went back and forth with the seller directly negotiated myself, hired a title company and an escrow company to do paperwork and was done, saving both the seller and me money.
My rationale for acting as my own agent is not necessarily tied to saving that 3% but because I don't like working with a person whos paycheck is defined by how expensive the house i buy is. However using the rationale of trying to find a good agent, is it ethical or even legal to offer the buyer agent a bonus based on how much they save you? In other words if I tell the buyer agent I will give him 4% of anything he saves me below the asking price, would that be legal? Or even when there is a deal out there that needs finding, I found a house that was abandoned, tracked down the owner, and ended up buying the house for about 10% of its appraised value. If I hired a realtor to find deals like that and paid him a % based on the appraised value instead of the buying price?
Thank you for your thoughts
- Realty1Point5
- Contributions:49
Michael,
Even though it doesn't come out of the buyer's pocket, it's still important to have a good agent.
Even though it doesn't come out of the buyer's pocket, it's still important to have a good agent.
- Michael Liew, "MichaelLiew"
- Contributions:33
That 3% is for other agents to show the property, not for you. As a buyer, you don't even pay the commission, so don't worry about it. Just offer whatever you think is fair and negotiate.
- Ofe Polack, "Ofe Polack"
- Contributions:1416
HouseDudePie, I used to be an investor, and when I took the real estate course, I did it only to find out more about real estate in general, which is what you have done apparently. I went further and became a Realtor and hung my license with an international real estate agency over 10 years ago. Ye, I pay my dues, but because of the training I received at that agency I am also better equipped to negotiate my own transactions. I just closed on a condo I personally bought on Tuesday. If you do not want to have to pay the dues that are necessary to operate as a sales person, then you become the client of a buyer agent or if you feel you know enough to go solo, by all means do it. Leave the commission out of the equation, that is between the seller and the listing agency, unless you are a real estate agent. Good luck in anything you decide to do.
- Joan Braunschweiger, "Morris County NJ"
- Contributions:1543
How to interview an agent? Ask questions, as many as it takes until you get a good feel for the agent both as an agent and as a person. Its a good idea to interview the agent's broker as well to get a feel for how the brokerage is run. The broker usually determines the "culture" of a particular office.
Keep interviewing agents until you are satisfied you have found the one who can meet your needs and hopefully exceed your expectations.
The interview process should also make it clear to the agents what your expectations are. This will make it more likely that you will find an agent who is a good fit for you.
Great agents are out there but you need to do the work to find them. There are a lot of agents to choose from so there's no excuse to settle.
- HouseDudePie
- Contributions:6
What I find entertaining about Mr Wests response is I have taken all the required coursework to become a realtor and was actually going to take the exam and it was highly recommended that I do not as then I will have to disclose my license on every deal and the guy I was working with said that soured several deals for him in the past.
Can anyone recommend a good way to interview or investigate a good realtor? I have talked to the National Association of Realtors and they just give me a list of realtors. I am not looking for someone to pitch me on houses, I will find the houses on my own, just want to look at them for 5 minutes and put in some offers.
Can anyone recommend a good way to interview or investigate a good realtor? I have talked to the National Association of Realtors and they just give me a list of realtors. I am not looking for someone to pitch me on houses, I will find the houses on my own, just want to look at them for 5 minutes and put in some offers.
- David Cooper-Las Vegas, "LasVegasRents"
- Contributions:281
What is it that attracted you to working with realtors that made you sick of dealing with them? You are interviewing the wrong agents.
My experience after 35 years, is to find an agent that actually closes deals, like finding the most productive agent in the neighborhood I am interested in. If they close a lot of deals, than I am not personally involved in letting the agent do their work. I look for results, and the 3% commission is nothing compared to the 20% off listing deals I have received working with a sales pro
David Cooper.
My experience after 35 years, is to find an agent that actually closes deals, like finding the most productive agent in the neighborhood I am interested in. If they close a lot of deals, than I am not personally involved in letting the agent do their work. I look for results, and the 3% commission is nothing compared to the 20% off listing deals I have received working with a sales pro
David Cooper.
- Brian Teyssier, "Brian Teyssier GRI"
- Contributions:964
Thanks for your question "HouseDudePie" and sorry you are having troubles.
You cannot be your own agent or represent yourself and get paid or save the commission. Now, you can represent yourself and they seller may agree to lower their asking price by the same amount as the buyer's agent's commission and just pay the seller's commission.
I feel too much is being emphasized on you being the agent when really the energy should be going into why you are not happy with Realtors? We are not all bad. If you are unhappy with yours, fire them and find a better one. How does one find a good Realtor? Search on Zillow.com and read past client reviews of them. If this is not satisfactory to you, feel free to contact me and I can refer you to a good one.
Good luck, hope this helps!
You cannot be your own agent or represent yourself and get paid or save the commission. Now, you can represent yourself and they seller may agree to lower their asking price by the same amount as the buyer's agent's commission and just pay the seller's commission.
I feel too much is being emphasized on you being the agent when really the energy should be going into why you are not happy with Realtors? We are not all bad. If you are unhappy with yours, fire them and find a better one. How does one find a good Realtor? Search on Zillow.com and read past client reviews of them. If this is not satisfactory to you, feel free to contact me and I can refer you to a good one.
Good luck, hope this helps!
- Joan Braunschweiger, "Morris County NJ"
- Contributions:1543
Honestly, I can understand HouseDude's beef- the choice for a buyer to do the work themselves and therefore save their side of the commission is taken away.
The thing is HouseDude, sellers are the ones who negotiate the commission with their agent so the buyer is totally taken out of the equation regarding the commission.
I do think that Mr.West's response was somewhat uncalled for. People should have a choice as to whether or not to use an agent and the frustration expressed at that lack of choice is understandable.
Do I believe that good agents add value? Of course but that doesn't mean everyone needs their services and they shouldn't be forced to pay for them.
The thing is HouseDude, sellers are the ones who negotiate the commission with their agent so the buyer is totally taken out of the equation regarding the commission.
I do think that Mr.West's response was somewhat uncalled for. People should have a choice as to whether or not to use an agent and the frustration expressed at that lack of choice is understandable.
Do I believe that good agents add value? Of course but that doesn't mean everyone needs their services and they shouldn't be forced to pay for them.
- Ruth Neff, "Rutho4"
- Contributions:1
First, I would suggest that you research for a good buyer's agent. The listing agent is offering a commission to a licensed agent. If you buy through the listing agent, the listing agent is working for the seller. You will not get the representation that you deserve. A hard working buyer's agent will earn their commission and they will be looking out for your best interest throughout the transaction. Good luck!
- B Mike West
- Contributions:240
Simple. Get a Real Estate license and associate yourself with a broker. Then you can represent yourself and SHARE that 3% or LESS with your broker (2.5% is very common).
Or...get yourself a broker's license and keep the 3% yourself. Of course, that means that you will have to spend the time to take the necessary classes and gain the required knowledge to pass the test, not to mention paying for the education and license fees. If you represent only yourself you will not have to obtain the E&O insurance which all other Realtors must pay.
Then there is membership in the National, California and local association of Realtors and the quarterly dues to the local MLS totaling about a grand a year.
Nothing to it. Have a blast.
Or...get yourself a broker's license and keep the 3% yourself. Of course, that means that you will have to spend the time to take the necessary classes and gain the required knowledge to pass the test, not to mention paying for the education and license fees. If you represent only yourself you will not have to obtain the E&O insurance which all other Realtors must pay.
Then there is membership in the National, California and local association of Realtors and the quarterly dues to the local MLS totaling about a grand a year.
Nothing to it. Have a blast.
- Debra (Debbie) Rose, "Livingston NJ"
- Contributions:2729
Well - there is no way to "go about" geting paid a commission unless you become a licensed agent.
You are free to represent yourself, not as a "buyer's agent", since you're not an agent, but don't expect the listing agent to forgo the agreed-upon commission that's stated in the listing agreement..
it is what it is......you can always ask the agent for a reduction/credit of some sort, but you can't be paid........and I doubt much of a concession will be offered.
You are free to represent yourself, not as a "buyer's agent", since you're not an agent, but don't expect the listing agent to forgo the agreed-upon commission that's stated in the listing agreement..
it is what it is......you can always ask the agent for a reduction/credit of some sort, but you can't be paid........and I doubt much of a concession will be offered.
Be my own buyer agent?
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