Should I use a " buyer's agent" when buying a house?

[xxxInfidelxxx]

I am still trying to realize the so-called American Dream of home ownership and years of debt hanging over my head.

I am looking at new builds being sold by the builder right now, but have had mixed advice on buyers' agents...some say yes, some say not needed. Thoughts?

With the new builds, the posted rates with no closing costs are in many cases better than if I were to go through a mortgage broker/bank, so it seems that I would not need one in my opinion...so long as the terms don't suddenly change in closing.

If I were buying used, I can see the advantages of using someone who actually knows what it is going on throughout the whole process (first-time buyer, so all I know I have learned from research, so help would be good).

The only reason I would consider not using one is because I was thinking, perhaps fallaciously, that the price could be knocked down a bit more without a buyers agent there to scoop up 3%...also heard that they are not always in your favor, as the more the house goes for, given their 3% cut, they make more when you pay more, so paradoxical

So 1.) Would you recommend using one when buying new from builder? (I think some even state no agents). Pros/Cons?
2.) If buying used from a owner, would you recommend using one? Would this already be figured into the price and would it take away from the amount I could save if I didn't bring one?

I am so confused....help, please.

 

[TripleAAA]

I was 23 (two years ago) when I bought my first place from a new development here in California.

I didn't use a buyers agent, nor ever even considered it or much less thought about it. I did however use the preferred lender through the building company which supposedly saved me about $5000.

For me personally, it was a rather simple process.

 

[DevilsAdvocate]

It really depends on how sophisticated you are as a buyer.

 

[AlienCraft]

Originally posted by: xxxInfidelxxx
I am still trying to realize the so-called American Dream of home ownership and years of debt hanging over my head.

I am looking at new builds being sold by the builder right now, but have had mixed advice on buyers' agents...some say yes, some say not needed. Thoughts?

With the new builds, the posted rates with no closing costs are in many cases better than if I were to go through a mortgage broker/bank, so it seems that I would not need one in my opinion...so long as the terms don't suddenly change in closing.

If I were buying used, I can see the advantages of using someone who actually knows what it is going on throughout the whole process (first-time buyer, so all I know I have learned from research, so help would be good).

The only reason I would consider not using one is because I was thinking, perhaps fallaciously, that the price could be knocked down a bit more without a buyers agent there to scoop up 3%...also heard that they are not always in your favor, as the more the house goes for, given their 3% cut, they make more when you pay more, so paradoxical

So 1.) Would you recommend using one when buying new from builder? (I think some even state no agents). Pros/Cons?
2.) If buying used from a owner, would you recommend using one? Would this already be figured into the price and would it take away from the amount I could save if I didn't bring one?

I am so confused....help, please.

Good luck with that. In CA they will have to split the cut the agents get.
Get an attorney, pay for someone who is actually looking out for your interests, not their commission.

 

[Ornery]

It Pays to Negotiate Your Agent's Commission

• When buyers approach a traditional real-estate agency, they are often assured that the agent's help is free. That's true in the sense that the home buyer doesn't normally pay the agent. But the service isn't really free because home sellers factor in the cost of commissions when they price their homes. In fact, some sellers are willing to lower the price if you show up without an agent.

You know what I find amusing? The fact that people pass up a perfectly good house, because of a few hundred dollars worth of cosmetic tweaks.

Anybody ever tell you the most important attribute of your new home? It's LOCATION! Worry about that first and foremost, and weight that priority ten times higher than the next one on your list, which is probably price. That gives you an idea of how insignificant the wall colors and carpeting really is.

 

[dirtboy]

So you're saying that you don't care if your agent works for the builder? I sure do. I can tell you excatly who they are going to watch out for, and it won't be you.

Get an outside realtor before going to any model homes. If they ask, tell them you are represented. Once you sign their sheet, they own you. I guarantee you an outside agent will be beneficial, and it won't cost you anything.

 

[TripleAAA]

You might also want to try and talk to some other people who have bought from the same builder. Ask them about their experience. There is definitly a quality level variance from builder to builder.

 

[Pacfanweb]

Depends on how much you know about home buying. A buyer's agent is looking out for YOU. The selling agent is NOT.

We used a buyer's agent last year when looking, and he was a BIG help...even talked us out of one house that we thought we were in love with, and boy are we glad he did.

If we had no agent, we'd have bought that nightmare and would have never been able to sell it.

 

[fbrdphreak]

My gf and I used a buyer's agent when looking to buy a condo. He was helpful in the fact that he was knowledgeable for us first time buyers, did the leg work of finding places that fit our needs, and overall was a very good experience. Now he did try to push a few places on us that he was interested in selling, but nothing bad and he got the clue when we told him quickly how ****** those places were. I say its worth getting a buyer's agent to save yourself the hassle. On the other hand if you have the time and patience to do it all yourself, go for it. Just be careful and do lots of research

GL

 

[xxxInfidelxxx]

Now I am back on the fence

Any good websites that weigh the pros and cons?

 

[altonb1]

Originally posted by: Pacfanweb
Depends on how much you know about home buying. A buyer's agent is looking out for YOU. The selling agent is NOT.

We used a buyer's agent last year when looking, and he was a BIG help...even talked us out of one house that we thought we were in love with, and boy are we glad he did.

If we had no agent, we'd have bought that nightmare and would have never been able to sell it.

A Buyer's agent looks out for YOUR best interests. Check your local laws for the details in your area. When we bought our house last year, the buyer's agents fees came from the seller--his services were free for me.

 

[FoBoT]

Originally posted by: DevilsAdvocate
It really depends on how sophisticated you are as a buyer.

:thumbsup:


i used one both times i bought a house, because i need help with that type of thing. i am happy to pay for the service our agent provided us. we looked at about 40+ houses over 5 months, they (couple) earned their $ and i was happy to pay for their experience and knowledge

 

[Maximus96]

Originally posted by: altonb1

Originally posted by: Pacfanweb
Depends on how much you know about home buying. A buyer's agent is looking out for YOU. The selling agent is NOT.

We used a buyer's agent last year when looking, and he was a BIG help...even talked us out of one house that we thought we were in love with, and boy are we glad he did.

If we had no agent, we'd have bought that nightmare and would have never been able to sell it.

A Buyer's agent looks out for YOUR best interests. Check your local laws for the details in your area. When we bought our house last year, the buyer's agents fees came from the seller--his services were free for me.

the buyer's agent would also prefer you buying a more expensive house instead of a cheaper one as they get more commission. Anybody that gets a commission for what they do has their best interest higher than yours. they do help you do the legwork but some agent only shows you what they want you to see, the houses that pays 4% or higher.

 

[xxxInfidelxxx]

Originally posted by: altonb1

A Buyer's agent looks out for YOUR best interests. Check your local laws for the details in your area. When we bought our house last year, the buyer's agents fees came from the seller--his services were free for me.

Right, but again--many sellers factor the agent fees into the price and would be willing to move more on price in the absence of a buyer's agent sucking up profit...

If they have a seller's agent, then they would have the half (or work out the split) the commission, so that's okay. If I find a FSBO from an owner with no agent, though, I would hate to have to roll the cost of my agent into the mix...make sense, or is my thinking flawed?

...and most new properties bought directly through the builder seem to be a fixed price, more or less, with the optional upgrades being subject to negotiation...so I don't see much value in an agent in this scenario, either.

If I were buying used from someone with a seller's agent, I do see the value in bringing my own, but otherwise, well....I just don't know. I would hate to lock in an agent, then find a house on new build on my own...someone has to pay the piper.

 

[PingSpike]

A buyers agent? Oh boy, you have a lot to learn about getting a home. Just murder the current occupants of the house you want and stuff their corpses in the crawl space. Then move right on it. Cut out the middle men.

 

[classy]

Originally posted by: Ornery
It Pays to Negotiate Your Agent's Commission

• When buyers approach a traditional real-estate agency, they are often assured that the agent's help is free. That's true in the sense that the home buyer doesn't normally pay the agent. But the service isn't really free because home sellers factor in the cost of commissions when they price their homes. In fact, some sellers are willing to lower the price if you show up without an agent.

You know what I find amusing? The fact that people pass up a perfectly good house, because of a few hundred dollars worth of cosmetic tweaks.

Anybody ever tell you the most important attribute of your new home? It's LOCATION! Worry about that first and foremost, and weight that priority ten times higher than the next one on your list, which is probably price. That gives you an idea of how insignificant the wall colors and carpeting really is.

Quick clarification, any and all fees are decided in advance in the listing contract, so a buyer gets no break at all whether he uses an agent or not. Unless its a for sale by owner or a listing where the selller pays no fee if he gets the buyer on his own and I know of no agencys that take those kinds of listings. There is no monetary negatives using a buyers agent.

 

[xxxInfidelxxx]

Originally posted by: classy


Quick clarification, any and all fees are decided in advance in the listing contract, so a buyer gets no break at all whether he uses an agent or not. Unless its a for sale by owner or a listing where the selller pays no fee if he gets the buyer on his own and I know of no agencys that take those kinds of listings. There is no monetary negatives using a buyers agent.

...unless buying new from a builder or, as you correctly stated, from a home being sold by the owner w/ a $5.99 Mal-Mart For Sale sign out front.

Many new builders, I am just now finding out and was previous mentioned, will add some upgrades or offer a reduced price if you don't bring an agent into the mix. I just read a few ads in the "New Home Source" that said, as previously mentioned, $5K back if no agents are used....and no closing costs. If the home is new, if I get to do the walk-through and note the shortcomings that need to be fixed or caulked or whatever, if I shop for my own lending company, then there's no reason to pay some lady $9K to hold my hand...I think.

I think I'll go it alone if I buy new and shop for motgages on my own....

If I go used, I am still undecided.

 

[Rage187]

We used one with our first house and I would recommend it one a first time buyer.

 

[classy]

Originally posted by: xxxInfidelxxx

Originally posted by: classy


Quick clarification, any and all fees are decided in advance in the listing contract, so a buyer gets no break at all whether he uses an agent or not. Unless its a for sale by owner or a listing where the selller pays no fee if he gets the buyer on his own and I know of no agencys that take those kinds of listings. There is no monetary negatives using a buyers agent.

...unless buying new from a builder or, as you correctly stated, from a home being sold by the owner w/ a $5.99 Mal-Mart For Sale sign out front.

Many new builders, I am just now finding out and was previous mentioned, will add some upgrades or offer a reduced price if you don't bring an agent into the mix. I just read a few ads in the "New Home Source" that said, as previously mentioned, $5K back if no agents are used....and no closing costs. If the home is new, if I get to do the walk-through and note the shortcomings that need to be fixed or caulked or whatever, if I shop for my own lending company, then there's no reason to pay some lady $9K to hold my hand...I think.

I think I'll go it alone if I buy new and shop for motgages on my own....

If I go used, I am still undecided.

If your a buyer the positives of using an agent are unmatched. There are no real drawbacks to using a buyers agent. And the kinda dream deals are like four leaf clovers, they are out there, but you'll have a tough time finding one. Use an agent, trust me, use an agent.

 

[xxxInfidelxxx]

Originally posted by: classy
There are no real drawbacks to using a buyers agent. And the kinda dream deals are like four leaf clovers, they are out there, but you'll have a tough time finding one. Use an agent, trust me, use an agent.

...except the $5K-$10K rebate from not using one with a new build, right? I am reading that new homes have the price of both agents worked into the price. If the buyer doesn't bring an agent, more often than not, he could get the cash the agent would have received...if you ask and work it into the deal. Otherwise, the builder just keeps it as pure profit.