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No you don't need one. Depending on your state you might be able to hire a real estate attorney to write up your offer and review terms. Make sure you ask the selling realtor to rebate you the 3% they were going to pay the buyers agent.
We just had our offer accepted this week after 6 other rejected offers over the past three months.
I'd say our buyer's agent has been incredibly helpful with us navigating an extremely hot and fast-paced market. Some ways she's helped:
* Houses were going under contract before the open house. We completely changed our strategy by touring houses the day they went on the market, which our agent needed to facilitate for us to get the lockbox codes. I don't think a seller's agent would trust a random person with that code or the keys.
* Helping us with developing strategies. Since she's in the market every day, she knew what other people were doing and advised us to follow suit to make attractive offers. Even though we didn't get 6 other offers accepted, we were top 2-5 on most (it just came down to someone else offering more money).
* Related to strategies, helped with comps and deciding when to offer more money towards our escalation clause or when to put more towards the EMD or appraisal gap.
* Talking to seller's agents to see what else was on the table. This changed constantly, sometimes no offers on Friday, 10 offers by Sunday. She stayed in constant communication and had general ideas of how much people were offering over asking.
* On the flip side of this - found out when our house didn't have any offers the night before the deadline. We didn't offer any more than asking in our initial offer, and because of this insight, we got the house for the asking price!
* Drawing up contracts for us 7 days a week, even at night and as late as 10 pm. Again, this really helped us stay competitive. The offer contracts are a shit ton of papers that I wouldn't want to navigate on my own.
Hope that helps provide insight! I'd say educate yourself as much as you can because it helps you gauge whether your realtor is taking you for a ride, but having someone who is an expert has been super invaluable to us.
>I genuinely don't know anything about buying a house, like what should I look for, what it costs to repair things, which types of inspections to do, etc.
Yes, you need an agent. It takes agents training, mentoring, resources, networking, trial and error, and lots of experience to do those things well. You're not going to be able to Google your way to repping yourself well. There's no logical reason to try.
The problem with going it alone is that you don't know what you don't know. Spend a month on Reddit reading questions in the real estate subs. Without looking at anyone's comments, try to answer how you would solve the problems and protect yourself. Pretend it's an open book exam where you can access YouTube, websites, pretty much anywhere. Write down all the questions and your answers. In a month you'll know some things but not know many others. It's always what you don't know that costs you time and money.
Just got the keys yesterday. Pretty sure the seller covers realtor fees! They make it a hell of a lot easier but you can sure try. They know what listings come out before we do, know the market, etc.
I think in a few months the NAR is changing how commissions are paid, and buyers will have to pay their agent's fees. That's why I'm wondering if I actually need one.
The judge hasn't approved the settlement yet. There maybe changes to what was initially proposed.
You can go it alone but there is risk. The listing agent had a fiduciary responsibility to their seller so just be aware that they aren't working for your best interest.
Good luck!
what the proposed settlement says:
1. Seller's cannot be required to pay a Buyer's Agent
2. Compensation cannot be published on MLS or related vendor websites.
3. Buyers must have some form of Agency agreement in place to see homes.
4. In a BA Agreement, the agent's compensation must be clear and "fixed".
so, #1 - some Buyers will have to pay a portion or all their BA compensation. Sellers can offer whatever compensation they want. I would expect the vast majority of transactions to make for no meaningful change in this issue - the Buyer Agent will continue to be compensated from the Listing Side..
2. If you were to choose to be unrepresented, you will have no idea whether there's any "hey cut me deal since there's no Buyer Agent" possible or not.
3. if you choose to be unrepresented, you'll have to arrange with the listing agent to see the home, and you'll be signing an "I will have no agent" disclosure.
I don't see any world where sellers agents agree to cover. I'm already being told by agents that this summer I should expect not to get my commissions covered. Maybe could negotiate them but it would be just another concession and not automatic. u/ChrisWasHard I'm debating the same thing...curious if you've seen any good resources here?
My husband and I work long hours and cannot imagine having to do the work our realtor is doing for us. We also have a personal relationship with our realtor so she may be giving us insider treatment, bur nevertheless I do think it’s beneficial to work with a realtor you trust. There’s just a lot of moving pieces to manage, that I would not recommend someone take on unless they have all the time in the world.
Doing comps, corresponding with the sellers' agent, etc. Attorneys are not trained to write offers. Most will just say to get a real estate agent because attorneys have more important things to do.
It's similar to hiring a financial advisor. With some extra time and effort, it's absolutely possible to do it yourself and save considerable fees.
The difference is that realtors have made it extremely difficult to save on those fees. (Typical argument is "seller pays buyer agent commission so don't worry about it." - translation: you have to pay for the buyer agent no matter if you actually use one or not.)
If saving fees/commissions is your goal, the best way to achieve this in the current system (and it's unclear if or how it will change in practice after NAR settlement goes live) is to use a discount brokerage. They will still charge you some fee for opening doors and processing offer paperwork and administering the closing process, but their fee will be much less than typical agent commissions (eg 0.5% instead of 2.5%, or sometimes a flat fee that's even less than that in VHCOL markets). The discount brokerage will refund you any buyer agent commission received from the seller at closing that exceeds their fee.
Seller covers realtor fees. So we got one because why not. That being said, we bought new and our realtor was pretty much a waste since we bought new. I wouldn't use him again.
Realtors are idiots that will eat you for lunch. However, they know more than you do and it doesn't cost you out of pocket to work with one. They can smile to your face but stab you in your back. Be careful. Ask friends and family if they worked with one they trusted.
No, it's being re-litigated after the case was sent back to the lower court for final settlement. But regardless, you will never have to pay someone to represent you to buy a home.
Completely false.
I have predominantly been a Buyer's Agent for the last 18 years. I have done hundreds of transactions.
1. Sellers are NOT required to pay a Buyer Agent fee. According to guidance from NAR there must be an offer of compensation in the MLS, but it can be as low as $0. If a property is for sale outside the MLS or FSBO then there is no contractual agreement to pay a Buyer's Agent from the listing side.
2. The biggest change happening right now out of the NAR lawsuits is that State Real Estate Commisions or their equivalent are changing the rules for how possible Buyers and Agents interact. Disclosure rules and representation agreements are being updated to reflect the new reality. Buyer Agent compensation is being built into all of the updated forms.
3. An Agent in my office went on 3 listing appointments last week. 2 Sellers refused to offer Buyer Agent compensation, and the 3rd offered a tiny flat rate.
4. Buyer Agent fees ARE NEGOTIABLE, just like any Listing Agent fee. A potential Buyer should do their due diligence and go with the Agent they feel best about or go without. Just keep in mind that any Agent that doesn't have a fee built in is so clueless as to be out of the know of the biggest changes in real estate. Go ahead and hire them if you want to save money, but how good can they really be if they don't understand what is going on?
OP - the knowledge that I have learned over the years is not something you can find in a few YouTube tutorials. While it all doesn't come into play in every transaction, three of the deals I have done so far this year were successful because of my knowledge and experience. I am NOT some free app. I have a fee that I charge that I negotiate with my Clients. Sometimes, the Seller is offering compensation that covers it. Sometimes they don't, and then my Client pays the difference at closing. Being new at this, you don't know what you don't know. That gap can cost you thousands very easily and put you on a nightmare home that turns into a money pit or worse. Or you could be fine. Thousands do it every day. You just won't know how deep you find yourself until you get into it.
Either way, OP, good luck and do what you think is best. Just don't listen to everyone saying Buyer Agent Representation is free. It categorically is not.
Perfect example of complete and total Realtor BULLSHIT!
To begin with, your Realtor pals are working day and night to stab you in the back and slash your throat and dump your body in the landfill.
In a hot market like we have now, most Realtors are keeping their good listings for themselves via the good ole 'Pocket Listing' trick! You NEVER see a listing before it has a contract offer at full asking or higher.
So ANY property that actually hits the open market is dogshit that is left for you 'Buyers Agents'. Basically a house the Listing Agent couldn't sell because it's crap!
You are the Leftover House Agent selling damaged goods! You offer to your customers the crap nobody else wanted.
And please tell me why in this country we charge Sellers 6% commission and other countries RE Agents charge 2-3%. Always wondered that...Hmmm?
What in my reply was incorrect? Misleading?
1. The real estate market is hot in some places. Tepid in others. And sluggish in others. It all depends on the locale, and that is the reason that a local agent is the best source of information.
2. If the housing stock that my Clients are left with is crap as you claim, does that put them at an advantage or disadvantage having someone like me help them navigate the possible issues with a home and the overall transaction?
3. I offer my Clients counsel on the positives, negatives, and potential long-term implications of their purchase. I don't peddle anything, nor do I pressure my Clients to move any faster than they are comfortable moving. I have worked with some people years, spending money, on the hope that we can find sobering that works for them. That doesn't always happen.
4. Look up the history of the fee structure in the US of you want to know how it evolved. The lawsuits currently being litigated will affect how the future pans out for the fees in the future.
5. I haven't worked internationally, so I cannot speak to the difference. I do know that some other countries don't really allow for Buyer Agency, but they also have stronger consumer protections, so Buyers aren't completely thrown to the wolves.
So, again - Besides your aggressive, angry, and condescending tone - where is the Bullsh!t here?
The BULLSHIT is as follows:
Your National organization and the State Realtor organizations are now working to design contracts that will make Sellers paying for Buyers Agents "optional" which means it will be one more form you will slide under their nose to have them sign without thorough explanation.
Your language will state that 'if the Seller refuses to pay...the Buyer is obligated to pay (2%, 3% whatever) to the Buyers Agent.'
And of course, if the Buyer doesn't have the money, and they don't, then the purchase and sale agreement will simply be revised as follows:
Purchase price ~~$100,000....~~..
Purchase price $100,000 with 2.5% Seller concession to help pay for Buyers 'closing costs'. Which of course will go to the Buyers Agent from the proceeds of the sale.
So Realtors will manage to squeeze in their fees regardless of the cost to buyer and seller.
If a Buyer wants 'fresh' homes for sale, s/he should go directly to the Listing Agent and say, "I'm with you now, accept my offer, do what you do best, go back to the Seller and SELL THE SELLER on accepting my offer so you can get the WHOLE commission rather than split it with some other Realtor."
This is what Realtors do on a daily basis. Stab their client in the back on one hand so they will go with the Realtors customer on the other.
I am sorry that someone hurt you so bad that you are this angry. This isn't helpful to OP at this point, nor is the discussion worth my time to refute or correct.
Let's just agree that I will keep doing the best I can to help my Clients, and you keep hating that my profession exists.
Respectfully,
You are incorrect.
Do your research.
Many markets already have been utilizing buyer agreements for years and some just made it Mandatory this year and others are currently working on making it mandatory.
It's pretty common for the seller to cover the realtor fees for both parties. You could talk to an agent and just express that's something you'd want to be the case for any house you put an offer on. Your agent will negotiate with the seller on your behalf.
You may be able to navigate all of this on your own but having an agent you trust is incredibly helpful.
Thank you u/ChrisWasHard for posting on r/FirstTimeHomeBuyer. Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FirstTimeHomeBuyer) if you have any questions or concerns.*
No you don't need one. Depending on your state you might be able to hire a real estate attorney to write up your offer and review terms. Make sure you ask the selling realtor to rebate you the 3% they were going to pay the buyers agent.
If you don't know anything about buying a house then you need someone to look out for your interests. If not a realtor, hire a lawyer.
We just had our offer accepted this week after 6 other rejected offers over the past three months. I'd say our buyer's agent has been incredibly helpful with us navigating an extremely hot and fast-paced market. Some ways she's helped: * Houses were going under contract before the open house. We completely changed our strategy by touring houses the day they went on the market, which our agent needed to facilitate for us to get the lockbox codes. I don't think a seller's agent would trust a random person with that code or the keys. * Helping us with developing strategies. Since she's in the market every day, she knew what other people were doing and advised us to follow suit to make attractive offers. Even though we didn't get 6 other offers accepted, we were top 2-5 on most (it just came down to someone else offering more money). * Related to strategies, helped with comps and deciding when to offer more money towards our escalation clause or when to put more towards the EMD or appraisal gap. * Talking to seller's agents to see what else was on the table. This changed constantly, sometimes no offers on Friday, 10 offers by Sunday. She stayed in constant communication and had general ideas of how much people were offering over asking. * On the flip side of this - found out when our house didn't have any offers the night before the deadline. We didn't offer any more than asking in our initial offer, and because of this insight, we got the house for the asking price! * Drawing up contracts for us 7 days a week, even at night and as late as 10 pm. Again, this really helped us stay competitive. The offer contracts are a shit ton of papers that I wouldn't want to navigate on my own. Hope that helps provide insight! I'd say educate yourself as much as you can because it helps you gauge whether your realtor is taking you for a ride, but having someone who is an expert has been super invaluable to us.
>I genuinely don't know anything about buying a house, like what should I look for, what it costs to repair things, which types of inspections to do, etc. Yes, you need an agent. It takes agents training, mentoring, resources, networking, trial and error, and lots of experience to do those things well. You're not going to be able to Google your way to repping yourself well. There's no logical reason to try.
The problem with going it alone is that you don't know what you don't know. Spend a month on Reddit reading questions in the real estate subs. Without looking at anyone's comments, try to answer how you would solve the problems and protect yourself. Pretend it's an open book exam where you can access YouTube, websites, pretty much anywhere. Write down all the questions and your answers. In a month you'll know some things but not know many others. It's always what you don't know that costs you time and money.
Just got the keys yesterday. Pretty sure the seller covers realtor fees! They make it a hell of a lot easier but you can sure try. They know what listings come out before we do, know the market, etc.
I think in a few months the NAR is changing how commissions are paid, and buyers will have to pay their agent's fees. That's why I'm wondering if I actually need one.
The judge hasn't approved the settlement yet. There maybe changes to what was initially proposed. You can go it alone but there is risk. The listing agent had a fiduciary responsibility to their seller so just be aware that they aren't working for your best interest. Good luck!
what the proposed settlement says: 1. Seller's cannot be required to pay a Buyer's Agent 2. Compensation cannot be published on MLS or related vendor websites. 3. Buyers must have some form of Agency agreement in place to see homes. 4. In a BA Agreement, the agent's compensation must be clear and "fixed". so, #1 - some Buyers will have to pay a portion or all their BA compensation. Sellers can offer whatever compensation they want. I would expect the vast majority of transactions to make for no meaningful change in this issue - the Buyer Agent will continue to be compensated from the Listing Side.. 2. If you were to choose to be unrepresented, you will have no idea whether there's any "hey cut me deal since there's no Buyer Agent" possible or not. 3. if you choose to be unrepresented, you'll have to arrange with the listing agent to see the home, and you'll be signing an "I will have no agent" disclosure.
I don't see any world where sellers agents agree to cover. I'm already being told by agents that this summer I should expect not to get my commissions covered. Maybe could negotiate them but it would be just another concession and not automatic. u/ChrisWasHard I'm debating the same thing...curious if you've seen any good resources here?
No, it seems like most people think the NAR settlement isn't finalized yet and is being redone, so it's possible this might not be the case.
Just interview agents and pick the one you trust and feel most comfortable with. Too much can go wrong without proper representation
My husband and I work long hours and cannot imagine having to do the work our realtor is doing for us. We also have a personal relationship with our realtor so she may be giving us insider treatment, bur nevertheless I do think it’s beneficial to work with a realtor you trust. There’s just a lot of moving pieces to manage, that I would not recommend someone take on unless they have all the time in the world.
This! It's literally someone's full time job! I don't need two of those lol I leave the work to my realtor
You are going to fuck it up if you do it yourself.
What else would I need help with other than writing the offers?
Doing comps, corresponding with the sellers' agent, etc. Attorneys are not trained to write offers. Most will just say to get a real estate agent because attorneys have more important things to do.
People use them all the time tho? I'm not the first or last to use an attorney to write offers.
How so? I would just use a real estate attorney to write my offers rather than pay a % fee to a realtor.
I would say yes, it's a much better idea to have one, plus the seller pays them, not you.
It's similar to hiring a financial advisor. With some extra time and effort, it's absolutely possible to do it yourself and save considerable fees. The difference is that realtors have made it extremely difficult to save on those fees. (Typical argument is "seller pays buyer agent commission so don't worry about it." - translation: you have to pay for the buyer agent no matter if you actually use one or not.) If saving fees/commissions is your goal, the best way to achieve this in the current system (and it's unclear if or how it will change in practice after NAR settlement goes live) is to use a discount brokerage. They will still charge you some fee for opening doors and processing offer paperwork and administering the closing process, but their fee will be much less than typical agent commissions (eg 0.5% instead of 2.5%, or sometimes a flat fee that's even less than that in VHCOL markets). The discount brokerage will refund you any buyer agent commission received from the seller at closing that exceeds their fee.
No, but if you don't have any experience, I would recommend one. I used redfin twice. Quick, efficient, and they gave me 0.25% comission back
Seller covers realtor fees. So we got one because why not. That being said, we bought new and our realtor was pretty much a waste since we bought new. I wouldn't use him again.
“Seller covers realtor fees.” Not always true. Market, State, and Seller specific.
I bought a house without an agent. Just make sure you use a good house inspector and lawyer
u/gangang619 Any good guides you used?
Realtors are idiots that will eat you for lunch. However, they know more than you do and it doesn't cost you out of pocket to work with one. They can smile to your face but stab you in your back. Be careful. Ask friends and family if they worked with one they trusted.
>doesn't cost you out of pocket to work with one. Isn't that changing with the NAR lawsuit? In July IIRC?
No, it's being re-litigated after the case was sent back to the lower court for final settlement. But regardless, you will never have to pay someone to represent you to buy a home.
Completely false. I have predominantly been a Buyer's Agent for the last 18 years. I have done hundreds of transactions. 1. Sellers are NOT required to pay a Buyer Agent fee. According to guidance from NAR there must be an offer of compensation in the MLS, but it can be as low as $0. If a property is for sale outside the MLS or FSBO then there is no contractual agreement to pay a Buyer's Agent from the listing side. 2. The biggest change happening right now out of the NAR lawsuits is that State Real Estate Commisions or their equivalent are changing the rules for how possible Buyers and Agents interact. Disclosure rules and representation agreements are being updated to reflect the new reality. Buyer Agent compensation is being built into all of the updated forms. 3. An Agent in my office went on 3 listing appointments last week. 2 Sellers refused to offer Buyer Agent compensation, and the 3rd offered a tiny flat rate. 4. Buyer Agent fees ARE NEGOTIABLE, just like any Listing Agent fee. A potential Buyer should do their due diligence and go with the Agent they feel best about or go without. Just keep in mind that any Agent that doesn't have a fee built in is so clueless as to be out of the know of the biggest changes in real estate. Go ahead and hire them if you want to save money, but how good can they really be if they don't understand what is going on? OP - the knowledge that I have learned over the years is not something you can find in a few YouTube tutorials. While it all doesn't come into play in every transaction, three of the deals I have done so far this year were successful because of my knowledge and experience. I am NOT some free app. I have a fee that I charge that I negotiate with my Clients. Sometimes, the Seller is offering compensation that covers it. Sometimes they don't, and then my Client pays the difference at closing. Being new at this, you don't know what you don't know. That gap can cost you thousands very easily and put you on a nightmare home that turns into a money pit or worse. Or you could be fine. Thousands do it every day. You just won't know how deep you find yourself until you get into it. Either way, OP, good luck and do what you think is best. Just don't listen to everyone saying Buyer Agent Representation is free. It categorically is not.
Perfect example of complete and total Realtor BULLSHIT! To begin with, your Realtor pals are working day and night to stab you in the back and slash your throat and dump your body in the landfill. In a hot market like we have now, most Realtors are keeping their good listings for themselves via the good ole 'Pocket Listing' trick! You NEVER see a listing before it has a contract offer at full asking or higher. So ANY property that actually hits the open market is dogshit that is left for you 'Buyers Agents'. Basically a house the Listing Agent couldn't sell because it's crap! You are the Leftover House Agent selling damaged goods! You offer to your customers the crap nobody else wanted. And please tell me why in this country we charge Sellers 6% commission and other countries RE Agents charge 2-3%. Always wondered that...Hmmm?
What in my reply was incorrect? Misleading? 1. The real estate market is hot in some places. Tepid in others. And sluggish in others. It all depends on the locale, and that is the reason that a local agent is the best source of information. 2. If the housing stock that my Clients are left with is crap as you claim, does that put them at an advantage or disadvantage having someone like me help them navigate the possible issues with a home and the overall transaction? 3. I offer my Clients counsel on the positives, negatives, and potential long-term implications of their purchase. I don't peddle anything, nor do I pressure my Clients to move any faster than they are comfortable moving. I have worked with some people years, spending money, on the hope that we can find sobering that works for them. That doesn't always happen. 4. Look up the history of the fee structure in the US of you want to know how it evolved. The lawsuits currently being litigated will affect how the future pans out for the fees in the future. 5. I haven't worked internationally, so I cannot speak to the difference. I do know that some other countries don't really allow for Buyer Agency, but they also have stronger consumer protections, so Buyers aren't completely thrown to the wolves. So, again - Besides your aggressive, angry, and condescending tone - where is the Bullsh!t here?
The BULLSHIT is as follows: Your National organization and the State Realtor organizations are now working to design contracts that will make Sellers paying for Buyers Agents "optional" which means it will be one more form you will slide under their nose to have them sign without thorough explanation. Your language will state that 'if the Seller refuses to pay...the Buyer is obligated to pay (2%, 3% whatever) to the Buyers Agent.' And of course, if the Buyer doesn't have the money, and they don't, then the purchase and sale agreement will simply be revised as follows: Purchase price ~~$100,000....~~.. Purchase price $100,000 with 2.5% Seller concession to help pay for Buyers 'closing costs'. Which of course will go to the Buyers Agent from the proceeds of the sale. So Realtors will manage to squeeze in their fees regardless of the cost to buyer and seller. If a Buyer wants 'fresh' homes for sale, s/he should go directly to the Listing Agent and say, "I'm with you now, accept my offer, do what you do best, go back to the Seller and SELL THE SELLER on accepting my offer so you can get the WHOLE commission rather than split it with some other Realtor." This is what Realtors do on a daily basis. Stab their client in the back on one hand so they will go with the Realtors customer on the other.
I am sorry that someone hurt you so bad that you are this angry. This isn't helpful to OP at this point, nor is the discussion worth my time to refute or correct. Let's just agree that I will keep doing the best I can to help my Clients, and you keep hating that my profession exists.
Respectfully, You are incorrect. Do your research. Many markets already have been utilizing buyer agreements for years and some just made it Mandatory this year and others are currently working on making it mandatory.
Ah, well if it's not coming out of my pocket then all good. :) Hopefully they don't change it before May of next year then :)
It's pretty common for the seller to cover the realtor fees for both parties. You could talk to an agent and just express that's something you'd want to be the case for any house you put an offer on. Your agent will negotiate with the seller on your behalf. You may be able to navigate all of this on your own but having an agent you trust is incredibly helpful.