Canadian Money Forum banner

1 - 5 of 5 Posts

·
Registered
Joined
·
169 Posts
Discussion Starter #1
Hi do I need to hire or commission a real estate agent, or can i do it on my own to buy a house?

The seller's agent was telling we she could be my buying agent as well. Bad idea?

What are your tips about making an offer? It seems a bit of a charade.
 

·
Registered
Joined
·
229 Posts
Definitely possible to get your own place without the help of an agent.
I am looking for a place myself right now, so I've gone through the same question.

I am actually working with an agent right now, and as I see it, the buyer agent is simply working all the hassles for you: setting up appointments, calling seller agents and negotiating with them, may be when the seller agent has some news like price drop too, and RE agent might have a list of references of lawyers, home inspectors, etc that they have good working relationship with. RE agents should also have access to the historical prices or comparables around the properties you are looking at.

On top of that, RE agents have access to MLS database that the general public dont. Sometimes (or all of the time?) listings are restricted to that special MLS access to RE agents first, and a few days/weeks later go to the public portion.

RE agents are both buyer and seller agents, depending on who they are representing, but sometimes one agent work on BOTH ends within the same deal - there are some contractual obligation that they have to represent the best interest of both parties (eg. not letting out confidential information to the other side that might affect the negotiation process).
 

·
Registered
Joined
·
3,936 Posts
>Hi do I need to hire or commission a real estate agent, or can i do it on my own to buy a house?

As a buyer you have NOTHING to lose by having an agent. Sellers pay their fees, not you. I don't see why you would give up the valuable assistance of an agent in the buying process. Why do you want to do that?

>The seller's agent was telling we she could be my buying agent as well. Bad idea?

LOL! How so noble of her. The reason she suggests this is so that she can get you as a buyer and possibly on houses she has listed. This means SHE collects the full 5% instead of having to split the seller-funded commission with another (your) agent. This is a good one. LOL.

>What are your tips about making an offer? It seems a bit of a charade.

It IS a charade. But for making an offer, you need to understand that is legally binding. Did you get a mortgage pre-approval at your bank first? If no, do it now and find out how much you can put down offers for. Only when you have that figure, should you then begin to place offers. But search, search, search first. When I bought my condo I believe I only placed 1 or 2 offers. When you place an offer you need to be prepared that the seller will accept your offer, OR counter-offer. Your financing needs to be in place BEFORE you place any offer. And if the house is listed for $200K and you only have financing for $185K, you can't afford it. Don't waste the seller's time by placing offers you can't possibly follow through on. You must take this process seriously, take your time, don't let RE agents get you whipped up into a frenzy and excited about putting down an offer. Their job is to sell and collect commission. That drives their every action. Understand that.
 

·
Registered
Joined
·
2,054 Posts
>
As a buyer you have NOTHING to lose by having an agent. Sellers pay their fees, not you. I don't see why you would give up the valuable assistance of an agent in the buying process. Why do you want to do that?
You have nothing to lose unless.... sign a buyer's representation agreement, then if the real estate agent doesn't return your phone calls and you go with another agent or buy a privately listed house lawsuits will ensue.

Agents have also been known to only show houses from their brokerage not houses listed with low commission brokerages or even others. Of course they would rather show you a house they have listed and not show you anymore.
 

·
Banned
Joined
·
429 Posts
When I was younger (and naive), I bought a house, that I probably paid too much for, because the agent was both buyer and seller.

Bad idea.

I sold it at a loss 3 years later ... because I didn't want to negotiate.

However, I've become a little wiser over time. Get an agent when buying. Debate whether you need an agent when selling ... most times, the answer is yes.

Be patient with your investments, if you're in real estate. There are good times to buy and good times to sell.
 
1 - 5 of 5 Posts
Top