For buyers who have purchased a few homes in the past, is it really worth it to have a realtor represent you?

Asked by BW, Boca Raton, FL Sat Nov 23, 2013

I've purchased properties in the past, do my own research, etc. I even tell my realtor how to write up the FR/BAR contract. Why would someone like me need a realtor to purchase my next home?

I'm not trying to offend here, just asking an honest question.

Help the community by answering this question:

+ web reference
Web reference:

Answers

19
Bob Brubaker, Agent, Lake Worth, FL
Sat Nov 23, 2013
Inherent in your Question are the assumptions that 1. Anybody with
a little time and common sence can access good information on
properties available-on par with real-time ,in-depth tools available to
subscibeing agents. 2. That Market conditions and Industry practices
pretty much remain the same over time.
If such assumptions were correct you might ask such a question.
Of course my day-to-day , year to year " on the ground " practice
of moving and leasing Real Estate may seem " static " and tools
available to the general public sufficient accomplish our tasks,so
nothing I could point out could persuade you on the value of
practical,up-to-date experience or the evolution of the "tools of
the trade".
The worst mistakes people make in Real Estate are usually the
result of overconfidence and flawed assumptions. For some
reason I seem to maintain a customer base of active buyers
and sellers counting on the skilled practice of my trade to
" out -perform " what they could do on their own.


Bob Brubaker Highlight Realty Palm Beach County Fl. 561-876-6649
Web Reference:  http://pbc-res.com
4 votes
well said, Bob!!!
Flag Sat Nov 23, 2013
Tom Priester, Agent, Tequesta, FL
Sun Nov 24, 2013
hwkeye,

It seems like you have all the answers but still ask multiple questions about units you have purchased, or are looking to purchase, and how easily it would be to rent them. You seem torn between condos and single family homes and what the demand for each might be. It seems like you have figured out how to fill out blanks on a boilerplate contract but have been working with Realtors who are unable to.

Your return as an investor will rely heavily on where you buy, what you buy, negotiating the best pricing and terms in relationship to the current market conditions, understanding the pricing, demand, inventory and absorption rates in communities you are considering and a thorough understanding of how those conditions may change in the mid term to long term. It seems like you have all the answers so can you explain why you are asking the same questions, over, and over, and over, and over again.

Do you also perform brain surgery????
3 votes
Scott Miller, Agent, Boca Raton, FL
Sat Nov 23, 2013
Given the volume of questions you have posted in the last three days, I think you've answered your own question.
3 votes
Mark Doring, Agent, Coconut Creek, FL
Sun Nov 24, 2013
Why do we have a mortgage broker here selling others incomes?

Rebates are of course negotiable depending on the deal as are credits that a mortgage originator can give on yield spread premiums (ask your mortgage broker to waive origination fees and to contribute their yield spread).

Unlike mortgage brokers who typically offer nothing in terms of advice and competive pricing. A realtor offers much more in terms of service. Plus, a realtor can present you with a great number of opportunities for investments.

I have a large number of investors I work with and they come back to me because I make them money. So they don't deny me making money as well.

Call me for information on loan originators who waive all the junk fees on their loans including origination fees and offer lender and YSP credits without boosting your rate.
2 votes
Patricia Pro…, Agent, Boca Raton, FL
Sat Nov 23, 2013
I would suggest you obtain a real estate license and represent yourself. That way your time would be better spent than posting questions on Trulia.
2 votes
Mark Doring, Agent, Coconut Creek, FL
Sat Nov 23, 2013
I have to agree with Scott. For someone who questions the necessity of realtors, you sure seem to ask for alot of advice from realtors on these boards.

I'll leave with a quote from Abraham Lincoln regarding his work and value as a lawyer as the same principle applies to realtors.

"Our time and our advice is our stock in trade."
2 votes
Mihaly , Home Buyer, Sarasota, FL
Sat Nov 23, 2013
Since 1978 I have bought and sold 18 homes from New York to California to Nevada to Florida. many of my friends are realtors. I've dated a bunch of realtors. My late wife's brother is a broker. And there have been moments where things got a little over my head.
It really costs you nothing to have a realtor by your side. think of it as jumping off a bridge with a friend and as you sail through the air, your friend keeps telling you how lovely your hair flows through the wind.
In reality, in todays economic climate, things are changing so fast thhat really only a realtor is going to know the latest updates.
I can easily do any realestate transaction with just a lawyer present...but what's the fun in that?
The other nice thing about realtors, if you're a seller, is that they are like a suad of cheerleaders. Even if you're down two touchdowns with 2 minutes left in the fourth quarter, they will still be cheering hard for you to fight for a win...
And hey...if you're a dude, a lot of those real estate girls are single and HOT! You can always make a new friend or a dinner date whether a deal closes or not.
2 votes
ok
Flag Sat Nov 23, 2013
Annette Law…, Agent, Palm Harbor, FL
Mon Nov 25, 2013
Yes it is. let me explain why.
You have already read others report the real estate environment has changed dramatitcly in the past five years. Citizens are exposed to volumes of fake data, that they believe to be true, such as what if found here on TRULIA. Too many citizens are simply looking for numbers. and it seems ANY number will do. If you are one of those, even a professinal can not help you.
-
In case my reponse was missed earlier, Steve's generous REBATE prograom is essentially Steve spending other peoples income to make his costs look smaller. When STEVE iniaties a "MATCHING" policy, where he matches agent contribution from his own GENEROUS compensation, then a element of ingegrity exsits. As it exsits, Steve offers a PREDATORY program.
-
If you really what to own a home with minimal out of pocket expenses, I can get qualifed buyere onto a house at approximately 50% of negotiated price.
-
Now doesn't lhat look better than stealing the income from an agent who has actually provided you time, resources, oversight and guidance?
-
Couple that with "FIrst Look" and access to four invisible markets, indentifying the lender who will close on time, underbudget, transparent in their dealings, without all the hysteria and you'll find there just might be value to working with a professional. Most professionals will avoid citizens who are focused on the penney's, such as what Steve advocates. We focus on saving you the big money. The choice is yours.
-
Your questilon, Hwkeye, is justifed. In this ocean of disinformation, false data and blatant public deception, confusion reigns. Unfortuneately, collecting the massives volumes of 'stuff' available on Trulia and Zillow and the un-numbered websites parading as real estate sites, persuades one they have actonable data. They do not. The have FALSE data and this data will prove expensive. There is a reality that states, "I can not dissuade you from what you think you know." The cost of this education could easly come from the hands of folks like STEVE.
-
As you disclosed, you purchased properties in the past, you do your own research, you even OVERIDE your agents expereince and instruct how the contract must be written. I think you are well prepared and capable of accepting full responsibilty for the outcome. YOU should go it alone, but make sure you have a good fire department. It only takes one mistake in 25 to reveal the risk to which the 'lone rangers' are exposed.

Best of success to you.
I'm serious. many do 'go it alone' and succeed.
They DO pay an attorney. Attorneys won't be kicking in a rebate ot offset lender fees.
1 vote
Dorene Slavi…, Agent, Torrance, CA
Wed Dec 18, 2013
Worth What?
Worth it to have a professional protect your interests ?
0 votes
Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Mon Nov 25, 2013
-
NOTE TO CONSUMERS: You should shop realtors and lenders for your best over all deal!

With that said, its almost comical to watch some so desperately try to keep uneducated consumers...uneducated.

...Everyone knows the world if flat and you'll sail right over a cliff!!

...That horseless carriage will never catch on!

...Send a man to the Moon, who ever heard of such a thing!

...If you like your Doctor and Health Plan, you can keep your Doctor and Health Plan....PERIOD!


...REALTOR REBATES?

The U.S. Dept. of Justice says consumers should know about this massive Equity Savings.
http://www.justice.gov/atr/public/real_estate/florida.html

And it looks like a lot of Realtors offer this savings to consumers, just Google these 3 words in the center of the page: FLORIDA REALTOR REBATES click below to see 466,000 results:
https://www.google.com/#q=Florida+Realtor+Rebates+

FLORIDA REAL ESTATE COMMISSION Rule 61J2-10.028 (2) provides that: a licensee may share brokerage compensation with a party to a transaction (buyer or seller) as long as full disclosure is given to all interested parties.

Again, Mortgage Brokers and Realtors and their families DO NOT PAY/ FOREFIET 3% of property home Equity in Buyer's Agent Commission when buying real estate, so why shouldn't the consumer be able to have the same choice?

Its so Ironic to see consumers shop like crazy for weeks, scouring the internet, chasing every pop up rate ad online and put 20% down on a $375,000 purchase, all to save a .125% = a Tax Deductible $24.18 payment on a $300,000 loan, that they likely won't even have over 48 to 60 payments!

But then, those same consumers are lead and will lay down without even so much as a peep, allowing $11.250 of Tax Free Home Equity = approx. $15,000 of their pre tax gross income in real estate commissions to slip through their hands

Ask this question to anyone who says the Seller pays the realtor commission points: If a buyer negotiated their lowest price on a listed property, and then if the seller didn't have to pay the 6% real estate commission, and could lower the sales price another 6%, who then is actually paying the real estate commission?

Comments welcomed, but unlike the below, please keep it professional as the consumers can benefit from an informative debate.

---
0 votes
Mark Doring, Agent, Coconut Creek, FL
Sun Nov 24, 2013
To put it simply.....if I come across a property that offers a tremendous cash on cash return or is an extremely profitable flip opportunity that is going to earn an investor incredible returns and I have a choice of a portfolio of investors to present with such an opportunity, which investor do you think is going to get the call first?

Investors should ask for the type of discounts that I offer to investors who purchase through me. I offer a free rental listing for homes purchased through me and reduced listing rates for flips.

There are always deals to be made but a good realtor is the gateway to great money making opportunities.

What's good for the goose is good for the gander.

Very little differentiates the paper pushing role of a loan originator. and a good realtor can advise you on not only choosing the best financing but how you can save money on that as well.

Like I said, contact me if you would like to work with a loan originator who offers the most competive rates, diverse options in loan programs, optimal customer service, and never a loan origination fee.
0 votes
Susan Garell…, Agent, Boca Raton, FL
Sat Nov 23, 2013
Realtors don't just write up the FR/Bar contract. There are a lot of other things for which a good realtor will take responsibility for, and have knowledge of. There are addendums, inspections, negotiations, making sure no deadlines are missed that ruin the purchase or sale. They have knowledge of the local market. A good realtor will follow up right until closing date.
0 votes
Gary Hitchco…, Agent, Coral Springs, FL
Sat Nov 23, 2013
I don't know, I've been to the doctor many times and my mother was a nurse so I don't think I should use a professional anymore. Especially with Obamacare, my insurance just doubled so I think I'm gonna self insure
0 votes
my insurance is going from $732 a month to $1070! (single policy!). As Clinton said: "I feel your pain".... (and in this case, I share it!)
Flag Mon Nov 25, 2013
Mack McCoy, Agent, Seattle, WA
Sat Nov 23, 2013
Buyer who have purchased "a few homes in the past" are still hundreds or thousands behind a lot of us, and I have worked for a lot of people who have bought and sold homes before, but to answer your personal question - if you don't need a Realtor®, don't use one. It's really as simple as that.

Trying to convince you that you "need" one is like telling somebody you don't know very well why they should see a particular movie.

All the best,
0 votes
Terri Vellios, Agent, Campbell, CA
Sat Nov 23, 2013
Risk Management.

I have been licensed full time for over 15 years, and I have hired agents to represent me. I'm licensed to represent myself, but when things get squirrelly having a licensed and insured advocate with the backing of a broker sure comes in handy.

I have had attorneys, other agents hire me to represent them as well. That speaks volumes to their desire to mitigate risk.
0 votes
Tammy Hayes, Agent, Port Charlotte, FL
Sat Nov 23, 2013
Why use a Realtor

If you are currently in the market to purchase a home, you may be curious as to how a real estate agent can help you. You are about to be making an important decision for your future, a great investment of both money and time. A real estate agent can help buyers like you make sound, informed decisions.

Here are some ways that you can benefit from the help of a real estate professional:

Agents can help establish a plan for a home that fits your needs. Style, size, amenities, and other preferences will help determine what kind of home is best suited for you.

They will help you to determine realistic spending limits. They can often explain alternative financing options or introduce you to a mortgage counselor. Agents can arrange to have you “pre-approved”, which can help improve your positioning in negotiations.

Their access to all home listings within the multi-listing system enables them to evaluate based on your affordability and the qualities you desire.

They have access to information on taxes, real estate values, utility costs, and municipal services, all of which can aid you in your decision to buy.

They provide direct service by working with you, helping to negotiate the best terms and price for you.

They can make you comfortable with the closing process and they will obtain closing figures in advance for your review.

They can recommend home inspectors, pest inspectors, and surveyors, and can help arrange inspections.

These are just a few ways that a quality real estate agent can help you in your journey towards buying a home. To search for properties in the Sarasota and Charlotte County Florida area go to the following web site: http://www.tammyhayes.remax-florida.com/.

Tammy Hayes, Realtor, Re/Max Palm Realty, Port Charlotte, FL
0 votes
Lewis Berkow…, Agent, Boca Raton, FL
Sat Nov 23, 2013
Since the seller pays all the commission, you get someone who represents your best interest virtually free. The most you might pay would be a few hundred dollars and I am sure you will think they have earned it.

If I can be of assistance, please contact me at Coldwell Banker Residential-Glades Rd. Boca Raton.
0 votes
Eric Reichelt, Agent, 34994, FL
Sat Nov 23, 2013
If you don't have access to tax records or have the education to do a Current Market Analysis, you may not have the resources to properly negotiate a deal. It could cost you thousands of dollars. Just because you can file your own taxes doesn't make you a CPA.
0 votes
Alain Castel…, Agent, Weston, FL
Sat Nov 23, 2013
That's a very interesting question and perspective to discuss:

For starters, some of my best and easiest clients to work with are the ones who are highly educated in the Real Estate process. If my clients and I are on the same page, it makes for an effective partnership as we work together in trying to accomplish the same goal.


A "good" Realtor should be able to provide you with the following benefits at NO COST to you:
(Remember -- commission compensation usually comes from the listing side of the sale)

1. Accurate and up-to-date Market Knowledge
(A Realtor who knows their market, should be able to identify trends in pricing, inventory and supply/demand -- All of which are important in helping you make fair and competitive offers)

2. Unlimited Research Capabilities --- Timing is everything
(The technologies available to Realtors nowadays has almost become public knowledge especially to those who are astute and savvy with the internet. The amount of information available to Realtors on any given piece of property is limitless and the speed by which this information becomes available can be almost instantaneous. If you are computer savvy, you may not exactly benefit from working with someone who is not, but if you find a Realtor who understands and embraces the power of technology, it will only compliment and exponentially help make your search faster and more effective)

3. Someone who Cares
(If you only approach your Real Estate search with the idea of contacting the listing agent directly in hopes of gaining some perceived "leverage" in the ability to negotiate a better deal, you may find yourself lacking the support from someone who actually has your best interests in mind)

4. Networking
(Real Estate transactions -as you already know- have many layers, components, and moving parts that all must be managed effectively in order to prevent something from going wrong that can derail the whole process. Having good relationships with competent professionals -i.e. Realtor, lender, title agent, insurance agent, property inspector, etc- can be very instrumental in helping things move forward smoothly with any transaction)

These are just a few points to consider as everyone's level of dependency varies on their own personal knowledge and experiences with their own Real Estate transactions.

Is it possible to conduct your business without the help of a Realtor? -- Yes

Can working with somebody inexperienced hurt your chances of succeeding? -- That's true in any profession

"Why would someone like me need (benefit from) a realtor to purchase my next home?"
--- Hopefully I provided some points to answer your question.

Good Luck and thanks for the topic.

Alain Castellanos
The Keyes Company
castrealtor@gmail.com
0 votes
Search Advice
Search
Ask our community a question
Home Buying in Boca Raton Zip Codes

Email me when…

Learn more