Also, realize that an unrepresented Buyer walking into an open house is like gold to an agent, and you should expect to be schmoozed :)
If you are concerned with taking up your agent's time so early in your search, you might want to let him know that you'd like to visit some Open Houses, and ask for a few of his business cards to present to the listing agent when you visit the Open House. This lets everyone concerned know that you are presently working with an agent, and should an offer eventually be made, there is no question of 'procuring cause'.
I wish you all the best! It's a great time to be a Buyer!
As a buyer you don't "pay" your Realtor. The seller pays the commission cost. So a buyer's agent works for "free".
Just because they work for "free" doesn't mean that they do not work for you. IMHO the best thing you could do would be to sit down with your Realtor, set forth clear expectations, and map out a plan.
Most buyers I meet have no plan. Their idea is to go to open houses and "see what they like". The truth is that once a Realtor knows your needs, they can provide you a lot of help.
Do you think that the "best deals" ever really hit the market? The truth is that they don't. The best deals are sold before they hit the market, sometimes before the first open house.
I want to encourage you to challenge your Realtor. If you do not have a strategy for buying your new home, then that means you are just playing "hit and miss".
Just my two cents. I don't work with buyers unless we agree to a plan, commit to work together, and follow through.
My suggstion is to go with the realtor you feel confortable. Do not worry if he/she think you bother him/her too much. If he/she does, he/she is not the right one you r looking for.
I represent buyers; I believe we ought to see value in the work we do we should feel self worth, or social value as people: to make others' lives easier by sharing one's own craft with everyone else or something along those lines; more broadly we interact. So when I read such disdain and non trust in other people, in particular buyers' agents, I doubted myself and my work. Can I write my mind on a few of these topics?
wikipedia "caveat emptor" if you don't know already. I propose that caveat emptor is the reason: the logic behind a buyer's agent. we live in a world of caveat emptor. even more now, agency, true agency in the purest most positive form, is of significant value. I wish I had someone telling me real and educated/researched ideas/suggestions on my decisions: what to eat, how far to run, how much work to do, what clothing to buy, and not have to worry about whether it was a good investment or a good decision: to have faith and to not be let down. I don't have time to know everything. And I would trust someone that is invested in my happiness. I’d trust him/her more if he/she was good. I’d pay somehow if he/she does the job. As for me, my decisions could have been worse, but they also could have been better: at different points in my life, I wish I had good representation and good advice.
ok. i agree; there are flawed agents in the industry. just as there are flawed lenders, flawed companies. flawed practice everywhere. and it's easy to feel like it’s one (each one of us) against the world (everyone else) and that we know the world. We feel like we can do it ourselves and should when everything else seems so expensive. Afterall we have the internet, right? but the internet is vast. You won't ever know the whole internet, even if you have instant access to it. You have to assume and conclude that other people can do things better than you can, and not be offended or feel threatened. To embrace what they can do and allow them to do it for you.
The commission is an accessory fact. When a person does something for someone else, they expect some sort of consideration: this is what Real Estate and human life more broadly is about. 6% has been industry standard for a long time. I’m not absolutely committed to it, a lot of agents right now wouldn‘t be either. Offer something else. What is the agent’s service worth to you?
Remember, we have overhead costs too. Time is valuable. Time is more valuable than paper money. We have real costs, beyond time: e&o insurance for when we need coverage, ehem, advertising for many agents, commercial space (zillow commercial real estate; it's not inexpensive), taxes, etc. Not to mention, outside of our jobs we need to eat, and have many of our own concerns, and financial liens on our freedom. I’m working at it. But I won’t let my struggle be reason to act unfairly or abuse power, you shouldn’t either.
If a buyer has not signed an agency agreement with me, I’ll still pay attention to him/her. But meanwhile I’m dedicating more time to the buyer that did. If that buyer wants to terminate our agency agreement, to rip the form so-to-speak, I won’t protest; but I’ll ask why, listen and come to my own conclusions; maybe I won‘t work with said buyer later on. If the buyer leads me on, benefits from my work, then works with someone else or otherwise disses me, I might draw my own conclusions about how that person is as a person, and not speak for a while. Forgive me in advance. But still, you are free. So am I. And we are free to do or not do business together. We are free to conduct ourselves as we conduct ourselves. Others are free to judge. There is such thing as dignity. There’re only 24 hours in a day. I dedicated one to writing this. You dedicated a portion of one to reading this. That sounds pretty reasonable. Sorry for writing so much. Thanks
We are anyway seeing even the billionaires taking the TARP money and then paying themselves multi-million dollar bonuses (from - what was until very recently your own money and what you gave to the government as taxes).
There are no fiduciary responsibilities of an agent. At least the 2-3 with whom I have been involved never told me about them and certainly did not act like they have any responsibilities at all other than collecting the 6% check. And before you sign the agreement, look for those "fiduciary responsibility". By the way, even AIG has fiduciary responsibility towards their customers.
You can also probably tear up the agreement with your agent and get a new agent and maybe look around on your own, but remember, whatever properties you have already seen with your ex-agent - you will still be responsible for paying his / her commission if you do happen to buy these properties.
And to answer the question, yes that is fine as long as you're honest with the list agent at the open house when he/she asks if you already have representation.
The problems associated with agency are more commonly the clients' misunderstand of what to expect from their agents: like going to open houses without the buyers' agents' knowing, or setting up appointments with list agents on their own. If you have a buyers' agent, you can destroy the agency agreement at anytime by simply asking and agreeing to termination of the relationship. thanks for reading
The challenge, really, is choosing the right agent. Ask for references, check for experience, and interview a few before deciding. Investigate the responsibility of a Buyer Representative.
With a listed property you typically do not save the 6% commission. This is paid to the listing agency upon the completed sale.
Your Buyer Agent is paid by his/her agency that is paid through a portion of the listing commission.
In dealing directly with a seller, if you are not represented, you had better be prepared to protect yourself from many directions. At the very least, hire an attorney to be sure your legal interests are protected.
With all the intricacies of a real estate transaction you may actually save money by hiring a Buyer Agent. In most cases this is a "no cost" option for you.
Remember, most Realtors want to establish a long term relationship with you so you will refer your family and friends and you will call them when it is time to sell your property. This is how Realtors build a network of satisfied clients.
Yes, this is a free country and in Abby's circumstance, she may be free too. However, I would like to mention here that this free does not mean absolutely free. Remember in the real estate principle, when we talk about the riparian rights, we mention that riparian rights are reasonable rights not absolute rights. When we talk about human rights or agent-client rights that is the same. All people have the reasonable rights. Reasonable means condition, restriction or no damaging other people's reasonable rights.
Its a free country and you have to be comfortable with what you want to do. At least for me, there has to be some connection with my clients. Its the biggest investment and the trust should be there.
You are buying your home, the nest. You are only making the agent's life easier by not taking him/her to every house. The agent is lucky to have you as a Buyer.
Absolutely......but we do recommend being up front and telling him/her you are attending open houses in general.
When attending an open house it is recommended that you tell the host agent that you are working with an agent currently. This will help you avoid unwanted follow up contacts and not mislead the agent.
certainly, you can go to any Public Open Houses. I believe, simple courtesy would encourage you to notify your agent.
When you come to an OH unaccompanied by your agent, please, be very cautious about giving any impressions to the Listing Broker and consequently, the Seller. It might play against you in negotiations if you decide to make an offer.
Since you are so early in your search process, I would discuss with your agent how both of you would divide your time between looking at houses together and going to OH on your own.
Now is a great time to buy. Good Luck!
Just, as Valerie mentions, be careful what you tell the agent sitting the open house (and that includes your "enthusiasm").... as anything you tell the agent, will undoubtedly be told to the seller.
When you sign in, make sure you sign in and put your agent's contact information next to your name. That way, the Open House agent will not bother you, rather they'll call your agent and ask "So... are they gonna buy it... they gonna buy it.... they gonna buy it.... huh, huh, huh?"
You are fine looking at properties at an Open House. It wouldn't hurt to let your agent know, unless you plan to use someone else. It won't be any cheaper if you buy it through the agent sitting the open house and it won't cost any more to go back to your agent to write up the offer.
You are correct in your assumption that the real estate fees (commissions) are typically included in the purchase price and paid from the sellers' proceeds.
The truth is, the more properties you see the better grasp you will have on value. Your buyer's agent should do a price analysis before you ever write up an offer.
Let me know if I can be of further help.
800 25-BUYER http://www.BostonAreaHomesRE.com http://www.FindaHomeOnYourPhone.com
You are the client, you have the control. However, It's in your interest to coordinate your efforts with your agent. You should let him/her know what your plans are so he/she can perhaps get some info for you ahead of time (i.e. comps, motivating factors of the Seller, area facts, etc.).
Regarding the first response of agents being "very very expensive"; I have worked as a Buyer Broker for years and NEVER had a client pay a direct fee for my services, my compesation was always offered by the Listing Broker.
With you and your agent working together you're bound to have a successful homebuying experience. Good Luck!
Yes its is ok for you to look. The best advice, as a broker, that I can give you is to email the properties ahead of time to your broker so they can do some research and find out some ins and outs about the home that you may not know or get from the listing broker once at the Open House. He can also register you with the listing broker ahead of time so that you dont have to sign in and the listing broker will know up front that you have representation. It is wise to keep open communication with what you arre going to see so that your broker can also start getting a feel from what you are looking for and where.
A good buyers agent is your best asset, against what other people might say. They are compensated out of the listings brokers commission and they do not usually cost you a fee or additional monies. So no...they are not expensive at all, and as I stated, a GREAT buyers agent can be your greatest asset and ally.
Obviously, if you are driving by an open house and you want to stop in, you can of course...I would just advise you to advise the listing broker that you have a buyers agent up front and sign in there name and contact number or leave his/her card.
Best of Luck!!
Joshua Lioce, Broker/Owner
Realty Executives Lioce Properties
In absence of a contract that is fine.. It is best to write your agents name next to yours when you sign in to avoid any confusion .