Questions about real estate agents.

[sandmanwake]

Since a real estate agent gets paid on commission based on a percentage of the selling price, what incentive does a buyer's agent have to try to get the best deal for you as possible pricewise? Seems like if you tell them that you're looking for a place in the range of x to y, where y>x, then it would benefit their own wallet more to bid on a place for you more in the range of y rather than x even if the seller might be willing to settle for x.

What am I missing here? What all does a buyer's agent do for you that would justify more than likely paying y rather than x on a piece of property?

 

[Slew Foot]

I cant wait for the bubble to burst. All the idiots who thought they could make a killing selling the same home 20 times in a year will be crying in their beer.

 

[puffff]

only incentive the agent might have is to not lose a potential sale. you have no binding contract to buy through a specific agent. if you feel your best interests are not being looked out for, you can find someone else.

one thing you could do when contacting an agent initially is give a ballpark figure, not a range. say you're looking for something around 300k, dont say 250-350k. that way the agent doesnt know where your threshold is, and might be less inclined to inflate prices for fear that extra 15k he or she is trying to add is going to be the deal breaker.

 

[bctbct]

Some buyers agents will try to sell you more and show you houses you would not be interested in. Good ones will listen to what you want and find it for you. The key is they have to make a sale....so its better for them to listen to you.

I have one of each...didnt buy from the guy that kept showing us two bedrooms when he knew we wanted 3 bedrooms.

 

[FrustratedUser]

Originally posted by: sandmanwake
Since a real estate agent gets paid on commission based on a percentage of the selling price, what incentive does a buyer's agent have to try to get the best deal for you as possible pricewise? Seems like if you tell them that you're looking for a place in the range of x to y, where y>x, then it would benefit their own wallet more to bid on a place for you more in the range of y rather than x even if the seller might be willing to settle for x.

What am I missing here? What all does a buyer's agent do for you that would justify more than likely paying y rather than x on a piece of property?

Exactly. They are just trying to sell you the most expensive house you barely can afford.
I hate Real Estate agents - lazy fscks.

 

[sandmanwake]

Originally posted by: Slew Foot
I cant wait for the bubble to burst. All the idiots who thought they could make a killing selling the same home 20 times in a year will be crying in their beer.

According to some agents and mortgage lenders I talked to this past weekend, the burst will never happen. Real estate in the NoVa area, where I'm at, will continue to appreciate at 15% or more each year and the feds will lower interest rates soon once they realize the high interest rates is hurting the economy, so it'll be smart for me to get a variable rate loan or even better: a variable rate, interest only loan. Heck, I wouldn't even have to sell any of my current investments for a down payment because they'd let me put them up as a secure collateral and loan me the down payment also. It'd be a win-win situation for me. I'm not sure if these people seriously thought I was stupid or on drugs.

 

[spidey07]

Originally posted by: Slew Foot
I cant wait for the bubble to burst. All the idiots who thought they could make a killing selling the same home 20 times in a year are laughing all the way to the bank.

fixed

 

[Sluggo]

Dont forget to think of it the other way as well.

Say you are asking 200k for your house, you get an offer of 180k. It is very likely your agent will advise you to take this deal instead of holding out for a higher offer.

Split commision w/ buyers agent

3% of 200k = 6000
3% of 180k = 5400

Then most agents will still have to split the commision again with the agency they are with.

200k commision after split = 3000
180k commision after split = 2700

So in the end the 20k difference in price is only worth $300 to you realtor. Why in the world would they want you to hold out an indeterminable amount of time, and continue to list and show your house for only $300. They want you to take the offer now so they get paid ASAP and move on to another deal, even though your house may easily bring a 200k offer.

Your realtor MAY not have YOUR best interests at heart.