Comments on: Buying Real Estate, DIY-Style

By: Angie

Angie — Wed, 05 Mar 2008 18:38:04 +0000

I think the most important step is to be realistic in what you can and cannot do. I’ve seen so many first time home buyers jump into something they cannot afford only because they have big dreams.

By: Marcus

Marcus — Tue, 12 Feb 2008 21:31:23 +0000

My biggest issue with using a buyer’s agent, and why I am currently looking for a home without the help of an agent is why should I hire somebody who gets paid more the more I spend. Talk about a conflict of interest!

By: Stefan Laaha

Stefan Laaha — Wed, 28 Nov 2007 20:55:01 +0000

Price: saavy buyers can get the info they need online. They can negotiate down (2.5% is standard we expect to reduce price) if they don’t come in with an agent. The inspector is worth his weight in gold when this is the case. Lastly, I feel agents tend work to help each other more than they do to help their client.

In general I think the Broker (not the agent) takes TOO big a chunk on commission. I agree with the comment above about commission being the same (%) on a 250K property and a 1 million dollar property: did the agent REALLY do THAT much more in effort?

By: Independent_Buyer

Independent_Buyer — Sat, 28 Jul 2007 16:44:38 +0000

As one currently involved in a home search and not represented by an agent, my reasons for going it on my own are mostly aligned with your theory #1. I have been part of 5 real estate transactions in OR in the past 20 years, 3 with agents “on my side” and 2 without. The 2 I did on my own were trouble and hassle free. One of the 3 that involved an agent went very badly, and in fact involved fraud on the part of the agent.
My other beef with using agents at all is that they are adamant about using the ’standard’ contract drawn up by the OR board of realtors, which in my view is slightly slanted toward protecting the seller, and is definitely slanted toward avoiding all litigation, even in the rare cases where litigation is reasonable and warranted.
I happily pay an attorney $500-750 to write a contract for the sale, and encourage the other party to have their attorney review and suggest changes before we sign.
Thanks for posing the question.

By: Jody McLeod

Jody McLeod — Mon, 23 Jul 2007 20:47:34 +0000

I can understand those folks who feel comfortable working without an agent; their level of experience may not warrant help and advice. However, I have worked with many first-time buyers who don’t know the first thing about buying a house. They tip-toe with trepidation around the whole process; it is all so foreign to them.

Just this last weekend I worked with a couple who asked dozens of pertinent questions during their search for their first home. Do you receive the keys when you sign the paperwork at close? What if we decide to back out? What if there is something wrong with the house? Is an oil tank a bad thing? Is this a good price for the house? How long does it usually take to close? What happens at a home inspection? What is a Seller’s Property Disclosure? How much earnest money should we put down? You get the idea.

More power to those folks who can go it alone and feel they have all of their bases covered, but for many people hiring an agent is in their best interest. I’ve talked to many buyers and sellers that say they wouldn’t buy/sell a house without an agent on their side.

And on the subject of commissions, I agree our system is a bit backwards, but it is what we have to work with at the moment. The market, as always, continues to change and this may be something that goes through an overhaul in the near future.

By: Gina

Gina — Mon, 23 Jul 2007 18:13:24 +0000

You could hire a secretary to setup your appointments for a lot less than what the BAC% rate to agents! I don’t mean to be an agent-basher, but they provide no REAL value outside of clerical work. To say that a buyer’s agent protects the buyer during contract negotiations is nothing but a fear tactic. Most realtor’s/agents have no or little legal education. The first thing a standard contract will tell you is that you are excusing your agent from any legal liability and that you should have the contract reviewed by a real estate attorney.

Sorry, but we all have had to face the impacts of the Internet on our lives and careers, it is time for the real estate industry to wake up!

By: Dennis P.

Dennis P. — Thu, 19 Jul 2007 15:44:40 +0000

When I started searching for a house last summer (vancouver area) I went the ‘independent’ route because I wasn’t sure what I was looking for and I usually do a lot of research. So I imagined myself searching for a house for 3 – 6 months while I picked up on the market and my desires in a home. After speaking with a few agents before starting my search I realized most were focused on closing a deal ASAP and not helping me with MY way of searching. Before starting I decided that if I saw the market leveling off or dipping at all I wouldn’t buy anything since my main interest was a 2 year flip. For those two reasons: long time searching, possibility of not buying at all I also felt guilty to hire an agent!

I ended up buying FSBO!

By: The Imperative of Divorced Commissions, Part 2: The Inherent Value of Free | BloodhoundBlog: Real estate marketing and technology blog | Realtors and real estate, mortgages, lending, investments

Sun, 15 Jul 2007 02:51:51 +0000

[...] would have one; but because of the perceived zero value, that’s emphatically not the case. Ron Ares wrote a couple weeks ago about the sudden appearance in our area of buyers who want only to deal with listing agents. [...]

By: gerb jones

gerb jones — Wed, 04 Jul 2007 15:17:31 +0000

Realtor commission is a joke now, that is why I listed mine by FSBO. I have sold 3 homes by myself and never paid a dime to a Realtor. The internet is going to level this game so that Realtors sell your home for a flat $500 or $2000 or whatever the going rate. No more 3% bologne.

By: Jeff Kempe

Jeff Kempe — Thu, 28 Jun 2007 14:46:33 +0000

Excellent post, Ron.

The biggest hurdle buyers’ agents have to overcome is the (mistaken) perception that the service is free. ‘Free’ carries with it no value, thus the notion that the exchange of warm bodies brings equivalece. It’s why buyers drift, and why they typically see no need to interview to find the best agent available, even though I’d argue a good buyer’s agent is as important to a buyer as a good listing agent is to a seller. It’s also the single most important reason we need to divorce commissions.

Re Private: Any buyer who thinks it’s clever to begin a transaction with a background check of the seller is a lawsuit waiting to happen. Most competent agents will stay far, far away.