At the end of the day, it's a convenience issue. Most people simply don't have time, and more importantly the desire, to spend 9 hours a day searching for, researching properties, and setting appointments with 20 different people for 20 different times. Also, you get the advantage of someone who does what you might do 5-10 times in your lifetime, 20-30 times a year as far as buying or selling a home goes. As much as people write blogs, try to "expose" how agents are compensated, and try endlessly to create a world in which real estate agents, insurance agents, etc are unemployed....it simply will never happen. Can everyone do their own taxes? Sure. Does everyone have the time, or want to take the time, to learn how to do it correctly? No.
The vast majority of people simply don't have the time or desire to devote to what they are not the expert at, as "easy" as you may think the process is. The bottom line is - you'll always have people who are going to sell/buy their own house, do their own taxes, fix their own brakes, and cut their own hair. The other 90% of people don't have the time, and would rather have a professional do it for them.
homebuyer123 says that anyone can get their license just by passing an exam. Unfortunately, this again shows her lack of knowledge of what it takes to get a real estate license. First off, the education is here: http://www.colorado.gov/cs/Satellite?c=Page&childpagenam (which I add up to be over 200 hours); and second, here are the requirements after education, including the exam, the FBI background check, and Errors and Omission Insurance: http://www.colorado.gov/cs/Satellite/DORA-DRE/CBON/DORA/1251
There's something wrong with someone who can come on here, anonymously, and not only read all of our responses (to try to educate herself) and then deride us. I guess we're good enough to give her our information, free. What I find funny is that she's so sure of herself giving you advice, yet she decides to do so anonymously so you can't go back on her if she's wrong. At least we're all not afraid to give you advice, culled from years of experience, and sign our names to it.
Again, to all of you who are considering purchasing a home, please contact a Realtor to interview. If you choose to not hire one of us, no problem, but at least at this point, you'd have made a choice based on your own information gathering, not based on the advice of someone who has no experience in helping someone purchase a home. Best of luck!
I did start the process without an agent of my own, but there are things an agent can provide that you may not have the time or resources for yourself.
For example, when I settled on an agent (test out a few and don't settle until you're happy) he was able to provide me with listings that met my criteria the moment they were on the market. Moreover, he had the connections to provide me with listings before they went up on MLS. There were times that I was the first to view a hot property and it ultimately led to my purchase.
My agent provided me with background on listings, such as the number of past offers, the amount of those offers, counter offers and the type of offers (all cash, FHA, etc.). That information allowed me to make informed offers of my own.
I work six days a week, so my agent was great with running the contracts between my lawyer and the seller, picking up other paperwork, getting everything to the right parties and letting me know where the sellers were on meeting their obligations.
If a person can got through the process without an agent, then more power to them, but it doesn't cost you anything to have an agent on your side. My agent split the commision with the sellers agent. It didn't change my bottom line.
What can the tree trimmer do that I can't do for myself? Or... What can a home painter do that I can't do for myself? Or...what can a auto technician do that I can't do for myself? Or.... What can a hairstylist do that I can't do for myself? You get the picture. These and many other professionals do what they do because they have been trained and have years of experience to be the best in their field. True professionals are always trying to do better in their fields and deserve the respect for the field they have chosen to work. Years of experience and a lot on money invested in education is just the beginning. This blogger obviously does not see the value we bring. It's a free country and she has a right to her opinion, but the fact that she is concerned enough to write about the subject and rant makes you wonder what her real issue is doesn't it? That being said, good luck to her:)
I could probably baby sit but I'm not as good as she is at it.
Good question. There are many things and many ways to answer this.
1. A homebuyer has limited access to the latest available properties.
2. A Realtor is trained in writing contracts in a way that benefits the buyer.
3. A homebuyer is not skilled in negotiating an offer and working productively with a seller.
4. There is a process for purchasing a home and sellers and agents don't trust a novice to perform.
5. Most of the REO's, HUD offers, and Fannie Mae foreclosures require an agent in the mix so they know that someone is in the mix that knows the ropes and knows what they are doing.
There are many more. I may write a blog soon to cover more of the advantages of using a Realtor as a Buyer's Agent. There are countless reasons that a buyer should not go into this alone. It is a no-win situation.
Robert McGuire ASR
Your Castle Real Estate
Direct - 303-669-1246
The number of things that we as Agents can do, that Buyers cannot do for themselves is the reason Doctors, Attorneys and SAVVY house wives hire us to buy or sell a home ;)
I'm happy to meet you out for a beer or coffee to discuss this further, if you like. Buying a home - whether $50,000 or $2,000,000 is a big deal. It's important to do it well.
Thanks for reading :)
Denver Lifestyleâ„¢ Real Estate
Good answers below. This question tends to come up from time to time. Especially in the 'hot markets'. It seems so simple to the uninformed eye. But the truth is that there are intricasies to purchasing a home that have not even been explored here. The main thing is knowing the contracts and potential pitfalls that only an experienced agent would know. You could 'potentially' save a few thousand dollars on purchase price and then lose 10's of thousands on unexpected problems either unknown upfront, or intentionally held back from you by unsrcupulous agents, scammers, or other deep hoes that an inexperienced and uninformed buyer could fall into. To me it is a given that you need an experienced Realtor to succeed.
Robert McGuire ASR
Your Castle Real Estate
Direct - 303-669-1246
2. Herd cats
3. Protect the buyerâ€™s rights
6. Protect the buyer from themselves
7. Deflect the opinions of armchair experts
9. Translate the real estate and mortgage mumbo jumbo
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
All she is pointing out is that you don't need a real estate agent to buy or sell a house. This isn't a big secret - everyone knows this. People have been buying and selling real estate without agents for decades.
People have also been fixing their own cars, doing their own taxes, and performing basic maintanence on their homes for decades. This hasn't, however, put auto mechanics, accountants, or contractors out of business and never will...
Again - it's a matter of convenience. So long as there are people that work full-time and don't have the time on their hands to devote to doing things themselves - real estate agents and other service professionals will stay employed. It's really as simple as that.
I think the purpose of her blog and comment is to "panic" real estate agents. She's trying to "expose" this big secret that you don't need an agent to purchase/sell real estate, and by "exposing" this secret - no one will use real estate agents anymore. What she doesn't understand is that most, if not all, people know they can do it themselves.
They just don't have the time or desire to.
Simply stated, the services of an agent, should help you avoid fallout from possible litigation.
It is often said that you don't know what you don't know, and that certainly gets truer as the stakes get higher.
The reason I'm posting "anonymously" is that I am not a self promoter that is on this board for personal gain. You knowing that I am Sarah Perkins from Arvada or Mary Smith from Lakewood is totally irrelevant because I have nothing to gain from posting here except to share my experience with other home buyers.
Bottom line- can agents be helpful? Sure. Do you have to have them to find a home in your ideal neighborhood and make and close a deal? No. I'm going to post this blog once again because I just love it that much. Good day to all, I am off to care for my sweet babies. Feel free to continue your panicked refutations. It only strengthens my argument.
For any buyers still pondering the above question, I would advise you to also look at the required education of a realtor. They like to compare themselves with doctors and lawyers but in reality, anyone can take the certification exam and become a "real estate professional".
Realtors have their limited usefulness, especially for first time buyers, but smart, motivated, experienced, tenacious buyers know that due diligence is always up to them anyway. This process is very doable on your own with specialized help (lawyers, lenders, and title companies). Please do not be dissuaded by these so called professionals who are only looking out for themselves on this board.
But, hmmm, it's sounds like you're an attorney?? So people should pay YOU, right?? LOL!!!! Here are the facts people: you can hire a professional Buyer's Agent to be your "advocate" and represent your needs for FREE 100% of the time.
This guy? God help us if he is an attorney, has NO clue. If anyone thinks buying and selling homes is easy, they should quit their job and try it for six months (oh wait, everybody does that now!!). Helping people buy and/or sell homes is a tremendous responsibility, and hiring a knowledgeable, professional Buyer's Agent is critical to your financial and emotional success. Always know, you make money when you BUY, not when you sell.
Oh before I forget, there is ONE MAJOR DIFFERENCE between realtors and attornies -- realtors don't get paid until we successfully help you buy or sell a home. Attornies? Let's just say "billable hours." Please contact at least three local realtors before making any real estate decisions.
RE/MAX Masters, Inc., Greenwood Village, CO
RE/MAX Masters, Inc.
HomeBuyer123, I appreciate your opinion, and am sorry that your experiences have led you to these conclusions. From my decade plus of experience, your opinion reflects the unfortunate bias and actions of the minority of agents.
I have routinely worked with clients for a year prior to them purchasing a home. They switched neighborhoods, price points, property type... all requiring starting 100% over. I'm OK with that as my satisfaction as an agent comes from having a raving fan, not from shoving a buyer into the "first home you see, regardless if it is the right one for you". My clients become my friends, and who, in their right mind, does their friend harm.
I agree that the buyer IS, in essence, paying for the buyer's agent services as the seller builds the 2.8% for the buyer agent into the price of the home, so the higher price of the home reflects the commission paid "by the seller".
We can do much more than just get a buyer into a home controlled by a lock box, and I welcome anyone to take me up on an offer of meeting for coffee to discuss how even the smartest, most educated clients I have benefit from hiring an agent.
~ Rick Janson
A more important question is what a home buyer can do that an agent cannot. If you have identified a neighborhood where you want to live, you can drop notes in all the mailboxes explaining that you love the neighborhood and for anyone contemplating selling to contact you. Then you can work with the seller on a personal basis, come up with a reasonable agreeable sales price, use a real estate lawyer to draw up the contract, and both of you can save a boatload of $$$ on real estate fees (bear in mind all the MLS listings have 6% built in to the price to pay the realtors so YOU ARE paying both agents involved.)
Read this great blog post.
I suggest finding a LOCAL Exclusive Buyer's Agent that knows the local market. If you need a referral I would be happy to help you. If you are looking in this area, call me!
Enjoy the day!
John G. Johnston
Cherry Creek Properties
A buyers agent represents the buyer and the sellers agent represents the seller. With knowledge, training and experience you want someone to represent you! Make sure you chose an agent that works full time and has had experience in the market. Currently there is low inventory in the market, so you have to have an agent whom is accessible to you the buyer.
I will you best of luck with your purchase and if you need an experience agent I would be happy to help!
Bill Pearson GRI, SRES |"Your Denver Realtor For Life"
ERA Herman Group Real Estate| 201 Columbine Street| Suite 301| Denver CO 80206
5280 Magazine FIVE STAR Real Estate Professional â€“ 2010, 2011, 201
I could go further into this, but instead, I'll just use a parallel: would you perform surgery on your spouse if you are not a doctor? If the answer is no, then ask yourself why not? Is it because you don't have the experience and are afraid that you may make a big mistake?
If this is your answer, then you now know why you would not trust purchasing one of the biggest investments in a typical person's life to someone inexperienced.
Best of luck to you!
There are many buyers that think because they have Internet access, they don't need an agent because they're going to "save" money by working directly with the seller. It makes sense on paper, but it doesn't translate in reality. A seller's agent is to make sure the seller gets the highest price possible ... period.
A professional buyer's agent (not just someone you happen to know who dabbles in real estate) is the diffrence between winning and losing. A good buyer's agent not only makes sure your money is well-spent in the right area, but also writes the contract to buy on YOUR behalf. A good buyer's agent makes sure you're working with a good, honest lender, which isn't as easy to find as it sounds.
Finally, a good buyer's agent is your "advocate." It's like hiring an attorney to represent your best interests in the largest purchase you'll ever make, except buyer's agents are FREE -- realtors are always paid by the seller.
There are a lot of misconceptions about buying a home, and it's very easy to make bad decisions that will cost you financially and emotionally. When you're ready to buy, interview three top-rated agents from this website and pick the one you want on your side.
Julie Montgomery, RE/MAX Masters, Inc., 303-906-3150, http://www.jmontgomery.com (visit this website for more information on buying a home)