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When you're buying, a realtor will never tell you that you are overpaying -- it would be less commission for them and greater chance the seller will reject or c

When you're buying, a realtor will never tell you that you are overpaying -- it would be less commission for them and greater chance the seller will reject or counter the offer which creates more work for them. When you're selling, they will always tell you that you are priced too high. They want a quick sale with minimal work. I've used realtors on the buy and sell side of the first house I owned. I was disappointed both times in that they seemed to do almost nothing except show up at the closing for their take. I've bought and sold two other homes FSBO since then, and the process was much easier.

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gamechangr 8y ago
>I've bought and sold two other homes FSBO since then, and the process was much easier Respectfully, I'm curious... How would doing it yourself be easier?
prepend 8y ago
I disagree a bit as when you’re buying the realtor doesn’t care which home you buy. So the incentive seems to demonstrate max value to you. I think a realtor is not incentived to get you the best price once you select a home and are in negotiation because a few thousand doesn’t matter if the deal is skunked. I’ve bought 3 properties and every time my realtor was really good about showing value and basis for valuation on tons of houses before we visited or offered. I think it’s very different for selling because you only have one house to sell.
hilbertseries 8y ago
A good realtor will tell you if you're overpaying, because they want repeat business and referrals. Same for selling.
sbov 8y ago
There's lots of things like this spoken about real estate agents that kinda make sense if you view humans as 100% money driven logic machines, but these are not the way humans necessarily behave. Our real estate agent certainly told us if she thought a house was overpriced. And she told us when she thought we should avoid a house and why - e.g. one was a questionable "flip", another had a huge tree a bit close to the house that we didn't notice (think of the foundation). We ultimately went for the cheapest house we saw. We had 20% more in our budget but the real estate agent was fine showing us houses that fit our parameters but were less expensive than what we could afford. I did some looking for houses to see too, and when I asked her about those she would say why she didn't show them to us.
theluketaylor 8y ago
When I bought my house my realtor convinced me to make a much lower offer than I had planned. Even after the negotiation was all done I still ended up paying less than I had been planning to offer initially. Cost them some commission, but I'll happily use them for any future transactions and recommend them to others needing a realtor. Not all realtors are out to maximize the commission on a single transaction. Many are like lawyers and are working for the best interests of their client (which is also in their long term interest).

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gamechangr 8y ago

>I've bought and sold two other homes FSBO since then, and the process was much easier Respectfully, I'm curious... How would doing it yourself be easier?

prepend 8y ago

I disagree a bit as when you’re buying the realtor doesn’t care which home you buy. So the incentive seems to demonstrate max value to you. I think a realtor is not incentived to get you the best price once you select a home and are in negotiation because a few thousand doesn’t matter if the deal is skunked. I’ve bought 3 properties and every time my realtor was really good about showing value and basis for valuation on tons of houses before we visited or offered. I think it’s very different for selling because you only have one house to sell.

hilbertseries 8y ago

A good realtor will tell you if you're overpaying, because they want repeat business and referrals. Same for selling.

sbov 8y ago

There's lots of things like this spoken about real estate agents that kinda make sense if you view humans as 100% money driven logic machines, but these are not the way humans necessarily behave. Our real estate agent certainly told us if she thought a house was overpriced. And she told us when she thought we should avoid a house and why - e.g. one was a questionable "flip", another had a huge tree a bit close to the house that we didn't notice (think of the foundation). We ultimately went for the cheapest house we saw. We had 20% more in our budget but the real estate agent was fine showing us houses that fit our parameters but were less expensive than what we could afford. I did some looking for houses to see too, and when I asked her about those she would say why she didn't show them to us.

theluketaylor 8y ago

When I bought my house my realtor convinced me to make a much lower offer than I had planned. Even after the negotiation was all done I still ended up paying less than I had been planning to offer initially. Cost them some commission, but I'll happily use them for any future transactions and recommend them to others needing a realtor. Not all realtors are out to maximize the commission on a single transaction. Many are like lawyers and are working for the best interests of their client (which is also in their long term interest).