Advice about realtor --long

[WendyisDarling]

ETA: I don't know that this is necessarily budget related except that the wrong decision could be a budget disaster. I do know budget board friends are often well versed on these topics.

We have only purchased one home, so I don't know much about proper realtor etiqutte. These are probably stupid questions, but I don't know the answers.

Background (a little long, so you may want to skip down a bit) A couple of weeks ago DH and went to a couple of open houses. We truly were just toying with idea of buying and even then not for months. We just wanted to see what is out there and what we would need to do to our house to get it ready for the market in our area.

One realtor was a nice lady and no one else was there so we talked a bit. The house wasn't a fit for us and we explained more of what we would need down the road. Explained that a local move is just an idea and also contingent on some upcoming life events. She told us of a home in our area that she thought she would list that met the needs we described. OK, great, but I felt a little weird because I knew she was listing it soon and really we don't want to buy for a few months if even then. We want to know what will happen with some things out of our control and we want to have time to make a few home improvements.

Anyway, the realtor called last night. Yep. She listed the house. Wanted to know if we want to look at it. I put her off and she said she would send me a link to the property.

I looked at the listing information online. It does seem like what we need. It looks nice. Price is right for us. Right neighborhood. Plus, mortgage rates are low and from what I understand the tax credit will be (might be) extended to all homebuyers (I don't agree with this, but would take advantage). Realtor said she thinks buyer would give us first right, I think I sort of understand that.

Pick up reading here, if you skipped background I don't think we should schedule an appointment unless we are 100% serious buyers, right? I don't want to put to everyone to all that trouble (but pictures indicate the house is empty). Seeing it in person could put us over the edge...but I really feel like we should wait a few months (then again this great house could be gone). Plus, we need opinion of selling our house.

Next, shouldn't we find our own realtor? And shouldn't we do this before we set up any sort of appointment to look at the house? (this could be a future reference question). Don't we sign a contract with this person? Or could we explain, "we are just looking at this one house and if for some reason we decide to go for it, you're in luck. We aren't going to have you take us to a bunch of houses". It seems we should research realtors out a bit, plus we are loyal USAA customers and if we blindly take a random realtor I think we should go through them because we get a little money back for doing so. Or is there an advantage to just letting the seller's realtor take care of it all?

Side question --Should you use the same realtor to buy a house and sell your house? Is that the accepted way things work?

1. Unfair to set up an appointment to look at house when really on the fence about buying? 2. Use seller's realtor or get own? 3. If get own, do that before any formal appoinment to see the house? 4. Use the same realtor to buy and sell house?

TIA to anyone who can offer advice.

 

[gopack]

I am no expert but we have used the same realtor to buy and sell a house. I think it increases their motivation when buying a house is contingent on selling a house. I would certainly take a look at the house if you are at all interested. In this recession it could sit on the market for months so it might be available when you are ready to make a move.

 

[SalandJeff]

Remember that the realtor ultimately works for the seller, even if it is a realtor that you contacted and is searching for you to find a house. The seller is the one that pays the realtors. As the buyer, you do not sign a contract with the realtor. You would only sign something to bid/buy a house. If you have your own realtor and the seller has a realtor, they typically would split the commission.

I don't think it is unfair to look at the property if you are not sure about whether you will be buying. It is the realtor's job to show it and it may result in a sale, if not now, maybe down the road when you are ready.

On the other hand, if you are sure you do not want to buy right now, I would not look for your own sake. You may find yourself looking at the perfect house for you. Then you have put yourself in the position of either buying before you are ready, or regretting that you can't buy it.

JMO...I would first make a firm decision about when you are going to buy and not look at anything until then. At that point find a realtor to help you look. They will find properties that meet your criteria. If you liked and felt comfortable with the realtor you met, you could even contact her when you are ready and work with her. Good luck!

 

[tinkarooni]

Well, I think that most people are "on the fence" about a house before they look at it. There is no harm in looking at it unless you really just don't want to buy now and are afraid you will be tempted. It's also just a waste of your time if you don't want to buy now. I wouldn't worry so much about wasting the realtors or sellers time at all. They want people to see their house. If somebody looks at it but doesn't buy it maybe they'll tell a friend and that friend will buy it. That actually happened to me and a friend so it does happen.

As far as getting your own realtor. With this house the listing agent already brought it to you so I think that on this house you're too late to get your own agent. She would be a dual agent on this house. That doesn't mean that you have to list your house with her, or you have to have her show you any other houses.

If it were me, I would decide if I really were interested in buying a house right now. If not don't go, if so go see it. It's all in your hands.

Good Luck!

 

[tinkarooni]

Remember that the realtor ultimately works for the seller, even if it is a realtor that you contacted and is searching for you to find a house. The seller is the one that pays the realtors. As the buyer, you do not sign a contract with the realtor. You would only sign something to bid/buy a house. If you have your own realtor and the seller has a realtor, they typically would split the commission.

I don't think it is unfair to look at the property if you are not sure about whether you will be buying. It is the realtor's job to show it and it may result in a sale, if not now, maybe down the road when you are ready.

On the other hand, if you are sure you do not want to buy right now, I would not look for your own sake. You may find yourself looking at the perfect house for you. Then you have put yourself in the position of either buying before you are ready, or regretting that you can't buy it.

JMO...I would first make a firm decision about when you are going to buy and not look at anything until then. At that point find a realtor to help you look. They will find properties that meet your criteria. If you liked and felt comfortable with the realtor you met, you could even contact her when you are ready and work with her. Good luck!

We were typing practically the same thing at the same time.

 

[KelleyD]

so i have a few opinions...

I have always been a little leary, though i know it happens alot, about buying a home with a realtor who has also listed the home. Because the previous poster is correct, they work for the seller. They should have your back to, but I just wonder how that can really work if they have both sides, you know? On the other hand they may be doubly motivated to get a sale through since this is double the commission for them.

Typically who you use to sell your home is who you use to look for a new home. So unless you want this realtor to sell your home, I may wait and find someone you do want. If you were to cold call about a listing, typically the first question they ask you is are you working with a realtor.

I wouldnt want you to meet with this lady to see the house then spring a realtor on her. If you think you will use someone else, get that person to show you the house. This is all business, you came in as a potential buyer this realtor will be on you until you say no not in the market or we have a realtor we will have that person contact you.

 

[prncess674]

Sounds like you need to sell your home before buying another so I would wait till your house is on the market and possibly under contract before looking at other houses. It is sheer torture to know that you found a house that you love but can't get out of your current situation. As much as you think you found the perfect house, there will be other perfect houses down the line.

If you really want to see the other house without the pressure, keep an eye on the property and hope for an open house soon.

I would never have the seller's agent as my buying agent. They don't usually have your best interest at heart and they may not give you all the pertinent comps.

 

[momofdbsdc]

I am a realtor. If you are uncomfortabe with the fact that she is also the listing agent tell her this. Ask her if she can recommend someone (possibly through her office to work as a buyers agent.) As a side not, some buyers agents will ask you to sign a contract...not all though.

Technically the seller is her client if she is the listing agent. As long as she makes full disclosure, there should be no problems.(She is legally responsible to disclose anything that the buyer needs to know. She is also legally responsible to protect her clients privacy.)

My first suggestion to you, if you are serious about purchasing ahome, is to become pre-qualified for a loan (it does not put you under any obligation to buy a home!) It will just give you a better idea of what you can afford and what programs are out there.

Good Luck!
Kim

 

[Chicago526]

I wouldn't go near a home purchase until my current home had sold. I felt that way when the market was roaring and I think that's even more true today. In your shoes I'd tell her "thanks but no thanks" and concentrate on getting my own house fixed up and listed, get pre-approved for a loan, and idealy at least have a contract on my home before even starting to look. There are tons of homes out there, you won't have trouble finding the right one, and I don't see prices going up anytime soon. Interest rates are harder to predict, but I don't see them going up signifigantly in the next year or so, though of course I could be totally wrong about that. I also think there is a good chance the home tax credit will be extended as well.

I will always have my own agent to help me purchase a home. The seller's agent is just that, the sellers. I'm not saying she or any other agent is unethical, but at the end of the day, the agent's 1st loyalty is to the seller (as it should be, really). As a buyer, your agent's services are free, the split the comission with the seller's agent, which the seller pays - not you. In short, there is no down side to having your own agent, and plenty of up sides.

 

[Bren's Mom]

To answer your question I will ask you one:

If you put your house on the market would you want YOU to come look at it? (Assuming you're living there and it's not vacant.)

My guess is no, you would NOT want to have to clean up and take everyone out for an hour while you look at a house you are in no way prepared to buy right now.

Take things one step at a time. First, you shouldn't decide to move based on how much you love a particular home. If you feel it's right for your family to move, make that decision by checking out all of the what ifs (including making sure you're preapproved for amount you'd need to buy the home you want and if you need to check out some open houses so you know what homes you might like would cost). Then put your own home on the market. When it's sold THEN start looking at new homes seriously.

As for an agent, interview several people before deciding who to list with. And when listing do NOT give them the exclusive rights to represent you in your 'buy'. Make sure they're doing their job as a seller's agent before you decide to use them as a buyer's agent.

 

[WendyisDarling]

IMy first suggestion to you, if you are serious about purchasing ahome, is to become pre-qualified for a loan (it does not put you under any obligation to buy a home!) It will just give you a better idea of what you can afford and what programs are out there.

Good Luck!
Kim

Thank you, Kim, for all the advice. I just copied this bit for discussion purpose.
That's the thing...I'm not sure that we are serious about buying a home. We went to the open houses not serious, but more curious for more down the road like 6 months from now, if things go a certain way.
We really wouldn't even want to sell our house at this time unless we were pretty sure we could get the specific house we may want. (yes, I know no guarantees).

This spring could be a whole different story.

Just hate the idea of this being the one that got away, kwim? We have a specific need that is hard to find (special needs son we will need to house when he is an adult, we want living quarters for him.) Mortgage rates are so good right now.
BUT I'm afraid all of this could lead us to an impulsive decision.
I suppose my thread has turned into quite a bit more than realtor etiquette.

Thanks to all for the comments and advice.
I'm inclined to think we need to just sit this out and not even look in person or we'll be too tempted as a pp wrote.
We should probably stick to the plan of 6 months and not go to any more open houses Temptation is so difficult...I think most of us here on Budget Board understand that general concept.

I will understand how the realtor process works much better then thanks to all the great replies.

 

[ADAMANDLISA]

If you have to sell your house first, please, please, please don't look at any homes untill you at least have the house on the market. Ours is up for sale and we already lost one house because ours hasn't sold yet. It was heartbreaking!!!

I swore I wouldn't look at another house until we had some interest in ours. Finally got some interest, started looking again and found another house. Now they have financial issues and I'm probably going to lose out on another house.

Don't put yourself through the heartbreak! It's such an emotional process...it's so easy to "move in" in your mind. Seriously, once you go through one, you can't stop.

I wish I would have listened to my own advice!

 

[wmharley]

so i have a few opinions...

I have always been a little leary, though i know it happens alot, about buying a home with a realtor who has also listed the home. Because the previous poster is correct, they work for the seller. They should have your back to, but I just wonder how that can really work if they have both sides, you know? On the other hand they may be doubly motivated to get a sale through since this is double the commission for them.

Typically who you use to sell your home is who you use to look for a new home. So unless you want this realtor to sell your home, I may wait and find someone you do want. If you were to cold call about a listing, typically the first question they ask you is are you working with a realtor.

I wouldnt want you to meet with this lady to see the house then spring a realtor on her. If you think you will use someone else, get that person to show you the house. This is all business, you came in as a potential buyer this realtor will be on you until you say no not in the market or we have a realtor we will have that person contact you.

not entirely accurate. I am a Realtor (I let my NAR membership lapse but i'm still actively licensed in the state though I cannot practice until NAR is paid up )

Many times, Realtors will cut a deal with a seller if they sell it on their own. so instead of X%, you get Y%.. Example. if a full commision is 6% (who knows really) and I sell it with my own buyer, then I would put it in the Seller's contract with our firm, that I would get 4 or 5%. gives me incentive to sell it on my own. not everyone does it though, so to assume they get double is false.

To the OP.. if you buy with her, you could assume there is a discount, so offer at least 2% below what you think you should.

I am a realtor. If you are uncomfortabe with the fact that she is also the listing agent tell her this. Ask her if she can recommend someone (possibly through her office to work as a buyers agent.) As a side not, some buyers agents will ask you to sign a contract...not all though.

Technically the seller is her client if she is the listing agent. As long as she makes full disclosure, there should be no problems.(She is legally responsible to disclose anything that the buyer needs to know. She is also legally responsible to protect her clients privacy.)

My first suggestion to you, if you are serious about purchasing ahome, is to become pre-qualified for a loan (it does not put you under any obligation to buy a home!) It will just give you a better idea of what you can afford and what programs are out there.

Good Luck!
Kim

Here.. if the seller's agency is a Single Agent brokerage, and not a Transaction Agent Brokerage, both the seller and buyer have to sign off on a change to Transaction Brokerage form prior. I usually had my sellers sign this prior though so if I found a buyer, the buyer would sign and away we went.

And I agree with Kim.. get pre-qualified first, or better pre-approved before you get serious.