4 ms·

Eh, I think a lot of realtors are not worth it, but a good one is. As a buyer I got an excellent rate from their recommended lender, I got a solid lawyer rec,

by lbotos 3y ago

Eh, I think a lot of realtors are not worth it, but a good one is. As a buyer I got an excellent rate from their recommended lender, I got a solid lawyer rec, and I got experienced guidance throughout the whole process. Was it expensive? Yes, but was it worth it? In my case, very much so.

ramraj07 3y ago
All good but 6% is outrageous. 1% each is going rate in many other countries and I don’t see what value even a stellar realtor offers that’s worth more given current housing prices.
newZWhoDis 3y ago
>As a buyer I got an excellent rate from their recommended lender No you didn’t, they suckered you on a good rate and screwed you with stealth fees on closing costs. With a few hours of hunting I saved $50k, beating their rate and cash to close. “Preferred lenders” are almost always a scam, but as always DYOR
- ziddoap 3y ago
  I'm surprised at how confident you are saying that based on a 5 sentence post from someone you don't know anything about.
  - phanimahesh 3y ago
    True. They should've added a probably in there. Preferred lenders usually are just as good as any other, or said differently, no better than anyone else except maybe for expedited paperwork. The bit about offering lower rates and sucking up more net in assosciated costs, hidden or plain, is not uncommon though.
bigstrat2003 3y ago
Same. I was very glad to have worked with a realtor when I bought my home, and I'll gladly work with him again if and when I choose to sell my home and buy another. He was well worth his fee.
hackernewds 3y ago
Are they worth 6% of $700k for buying a house? That is yearly income
- nojvek 3y ago
  A median 4B house in greater Seattle area is now 1.5M+. 6% of that is 90,000. Buyer and seller agent each take 45,000. That’s about a Tesla for each of them. Good realtors make a fortune without creating any productive value in economy. The house stays the same, just a big tax on exchange. Add that to lending fees, title fees, escrow fees and you’re easily looking at ~8% of transaction gone poof.
wonnage 3y ago
Lenders aren't gonna give you a preferential rate because of the realtor, I can't imagine paying for a laywer recommendation, and guidance is not worth 3% of my home's value. What counts as "guidance" anyway? A realtor can't be relied upon for structural issues, you'll need an inspection. They can't tell you anything about the market that you couldn't dig up yourself in 5 minutes searching Redfin. HOAs, contract language, and other legal matters will need a lawyer. You're basically gonna have to find a dedicated professional for anything that matters. The limited benefits I can think of are: - you're buying in a tight market, and they can find some off-market listings through their network - a reputable buyer's agent might make your offer seem more legit
- lbotos 3y ago
  I didn't get a special rate because of the recommendation, of the 3 lenders I was reviewing, the recommended lender had the best rate and I had the bonus that the realtor and the lender had worked together many times so they were a well-oiled machine. Trust me, I hate the idea of middlemen, and I do hope the system can get more efficient.

by lbotos 3y ago

ramraj07 3y ago

All good but 6% is outrageous. 1% each is going rate in many other countries and I don’t see what value even a stellar realtor offers that’s worth more given current housing prices.

newZWhoDis 3y ago

>As a buyer I got an excellent rate from their recommended lender No you didn’t, they suckered you on a good rate and screwed you with stealth fees on closing costs. With a few hours of hunting I saved $50k, beating their rate and cash to close. “Preferred lenders” are almost always a scam, but as always DYOR

ziddoap 3y ago
I'm surprised at how confident you are saying that based on a 5 sentence post from someone you don't know anything about.
- phanimahesh 3y ago
  True. They should've added a probably in there. Preferred lenders usually are just as good as any other, or said differently, no better than anyone else except maybe for expedited paperwork. The bit about offering lower rates and sucking up more net in assosciated costs, hidden or plain, is not uncommon though.

bigstrat2003 3y ago

Same. I was very glad to have worked with a realtor when I bought my home, and I'll gladly work with him again if and when I choose to sell my home and buy another. He was well worth his fee.

hackernewds 3y ago

Are they worth 6% of $700k for buying a house? That is yearly income

nojvek 3y ago
A median 4B house in greater Seattle area is now 1.5M+. 6% of that is 90,000. Buyer and seller agent each take 45,000. That’s about a Tesla for each of them. Good realtors make a fortune without creating any productive value in economy. The house stays the same, just a big tax on exchange. Add that to lending fees, title fees, escrow fees and you’re easily looking at ~8% of transaction gone poof.

wonnage 3y ago

Lenders aren't gonna give you a preferential rate because of the realtor, I can't imagine paying for a laywer recommendation, and guidance is not worth 3% of my home's value. What counts as "guidance" anyway? A realtor can't be relied upon for structural issues, you'll need an inspection. They can't tell you anything about the market that you couldn't dig up yourself in 5 minutes searching Redfin. HOAs, contract language, and other legal matters will need a lawyer. You're basically gonna have to find a dedicated professional for anything that matters. The limited benefits I can think of are: - you're buying in a tight market, and they can find some off-market listings through their network - a reputable buyer's agent might make your offer seem more legit

lbotos 3y ago
I didn't get a special rate because of the recommendation, of the 3 lenders I was reviewing, the recommended lender had the best rate and I had the bonus that the realtor and the lender had worked together many times so they were a well-oiled machine. Trust me, I hate the idea of middlemen, and I do hope the system can get more efficient.