3 ms·

Use a realtor. They can go through listings for you to find what you are looking for. Make sure you get a buyers agent to represent you (it generally costs no

by brk 17y ago

Use a realtor. They can go through listings for you to find what you are looking for. Make sure you get a buyers agent to represent you (it generally costs nothing or maybe 1%, depending on how the deal is structured with the listing agent). The other benefit is when it comes time to negotiate. A good buyers agent can help guide you (but recognize that in the end you're on your own). The other big benefit is that they are a proxy for you. You won't talk directly with the sellers or sellers agent when negotiating. This has the benefit of them not knowing how excited you are about a particular property, and prevents them from getting a good "feel" for exactly what you can afford. Also, just as an FYI, if you look at foreclosure properties (which are tempting in this market) be aware of all the fine print. These generally take a longer period of time to close and are much riskier overall. If I were buying another property in this market (I'm 1/2 looking)... Find a good buyers agent, get pre-qualified, know your limits and tell the buyers agent that if they happen to "hear" (all realtors in a market talk to each other) of a listing where the sellers are on the verge of foreclosure and would take a quick deal at a big discount that you would be interested...

Shooter 17y ago
I'm a licensed broker and one of the companies I own is a real estate brokerage. I made a very long response to the original poster (si2) before I realized that he is wanting to rent a home, not BUY a home or rent a commercial space. The realization that he is a residential renter could change my answer a bit, depending on his circumstances and his local market. Unlike with buying a home, you CAN - potentially - save money by finding the rental yourself. If buying, I always recommend an agent - with several important caveats. I'll revisit this thread again later, when I have some more time and maybe some more information has been posted. You give some great advice, brk, buy you should know that the average buyer's agent commission is 2.5%, not 1% or 'nothing." There are discounters that will give you around a 1% rebate on their commission in states where RE rebating is legal, usually subject to a minimum commission, but it is impossible to represent a buyer for 'nothing.' Most buyer's agents that will consider larger discounts are not really representing your interests, because they are either designated agents or (much worse) dual agents, who are just trying to eke out a bit more cash from the transaction that they might not otherwise receive. I can explain that in great detail when I have more time, if you're interested. In any case, you should know that people don't work for free, so you WILL pay for any services you use at some point in the transaction. Unfortunately, most consumers are woefully uneducated about real estate transactions, including important details about the principle of agency and commissions. My entire business model for our RE brokerage is built around educating the customer enough so that they don't get screwed over by agents or lenders. I would recommend that a buyer obtain representation from an EXCLUSIVE buyer's agent and to attempt to negotiate a commission rebate IF it is legal in their state and IF they will actually use less of the agent's time by being a savvy, educated shopper. I suspect most HN readers are savvy, educated shoppers who can use the web to save time and trouble for themselves and their agents, so most should be able to get a commission discount/rebate. I wish real estate rebates were legal everywhere, but some states have allowed lobbyists to overpower common sense and consumer rights.
- brk 17y ago
  You give some great advice, brk, buy you should know that the average buyer's agent commission is 2.5%, not 1% or 'nothing." I know this, but most listing agents will cover some or all of the buyers broker fee, so the actual buyer (typically) ends up paying somewhere between nothing and 1%. At least this is how it's worked on the 4 properties I've bought in the last dozen years. I didn't realize that he was renting instead of buying. My original advice was 100% geared towards buying. I've never rented, so have no good advice in that regard.
  - Shooter 17y ago
    "most listing agents will cover some or all of the buyers broker fee, so the actual buyer (typically) ends up paying somewhere between nothing and 1%" One of my goals in life is to correct this misunderstanding among buyers. BOTH the buyer and seller pay for the agent services if they are used. Believe me, it is not your fault in thinking that the listing agent and/or seller pays for the buyer's fee, because that is the way the paperwork is worded and that's what everyone says, but it is NOT the complete story. Even most real estate agents don't seem to completely understand this fact. I want people to not get lost in semantics and to understand that, as a buyer, you WILL pay for any services you use (and you may even pay for services you don't use if you're not smart about it.) In the long run, you will pay even more than the seller. The fact that the HUD-1 form creates a fiction doesn't mean that you don't pay. If you REALLY understand how everything works, you can get a real value and service for what you pay, saving money in the overall process. If you don't understand how it works, you will pay for an agent who may not have your best interests at heart, and not even realize that you paid for this dubious benefit.
cpr 17y ago
Just remember that the realtor works for himself, not for you. His job is to maximize his commission, which is usually shared with the selling realtor. We found that out when we bought our first house back in the 80's in Connecticut. A very nice older lady was our realtor, and she really didn't serve us well. (Lots of house issues swept under the rug, so to speak, until it was too late.)
- Shooter 17y ago
  "Just remember that the realtor works for himself, not for you." That is great advice, no matter what kind of transaction you're entering into. I actually got involved with the real estate industry because I hated how it worked. It is ridiculous that incentives are so misaligned in this industry. I thought I could change some things in my small corner of the world, but I was too naive, and it will take much longer than I thought for me to have any impact. Unfortunately, most consumers simply don't care enough about their money to educate themselves. Sad and irrational, but true. I will not work with anyone who stands to make more money simply by getting me to pay more. There is NO WAY they can represent my interests if that is the case. In my real estate brokerage, buyers pay for the actual services they use. They know the cost up-front, and there are no incentives for me to try to get them to buy a specific property or a more expensive property, because I'm not paid based on an (arbitrary) percentage of the property price. In 99% of cases, the money they spend on me will be spent whether I help them or not, so my fees aren't even an extra expense. Yet I still have to spend (relatively) much more time than my competitors to educate them about how and why I can help them, just because I am different. It's like the entrepreneurial cliches about the stupidity of introducing a completely new product (pioneers get arrows in their backs, right? It's easier to move to territory that has already been settled.) There are real estate companies with good business models and good agents...they're just very rare :-(
- brk 17y ago
  Just remember that the realtor works for himself, not for you. No offense, but you have a firm grasp of the obvious. This is true almost 100% of the time when you are "hiring" someone to work for you. In any transaction you should do some research yourself, get some references, and so on. When buying properties, my wife and I have always used the agent as a sort of voice-command Googlebot. Tell her (it's been in a her in all of our cases) what we want, what our budget is (usually holding back about 10% of what we really want to spend), and then go over the listings we're sent. We'll often do a quick drive-by and scout the neighborhood first and then use the agent to make the appointments and shuttle us around, and then finally handle any paperwork. I always get a home inspection, and I go around with the inspector as he is going through the house. I also escort the inspector when he is going over properties I've sold (one inspector shorted out the fuse panel (yeah, fuses) when doing an inspection for a buyer on my first house. He was ham-handed when removing the fuse box cover, touched a fuse and made sparks. He tried to cite that on his report as a faulty fuse box and I called him on it and made him account for his own error). I also tend to make it pretty clear, in plain English, up front that I like to find realtors, lawyers, accountants, etc that I can work with over many years. Attempt to screw me now and you'll lose a significant amount of future/repeat business, plus referrals. Most people can spot a sucker, and can also spot someone who is knowledgeable. Spend some extra effort on the latter, and the whole transaction process will be easier and more rewarding.

by brk 17y ago

Shooter 17y ago

I'm a licensed broker and one of the companies I own is a real estate brokerage. I made a very long response to the original poster (si2) before I realized that he is wanting to rent a home, not BUY a home or rent a commercial space. The realization that he is a residential renter could change my answer a bit, depending on his circumstances and his local market. Unlike with buying a home, you CAN - potentially - save money by finding the rental yourself. If buying, I always recommend an agent - with several important caveats. I'll revisit this thread again later, when I have some more time and maybe some more information has been posted. You give some great advice, brk, buy you should know that the average buyer's agent commission is 2.5%, not 1% or 'nothing." There are discounters that will give you around a 1% rebate on their commission in states where RE rebating is legal, usually subject to a minimum commission, but it is impossible to represent a buyer for 'nothing.' Most buyer's agents that will consider larger discounts are not really representing your interests, because they are either designated agents or (much worse) dual agents, who are just trying to eke out a bit more cash from the transaction that they might not otherwise receive. I can explain that in great detail when I have more time, if you're interested. In any case, you should know that people don't work for free, so you WILL pay for any services you use at some point in the transaction. Unfortunately, most consumers are woefully uneducated about real estate transactions, including important details about the principle of agency and commissions. My entire business model for our RE brokerage is built around educating the customer enough so that they don't get screwed over by agents or lenders. I would recommend that a buyer obtain representation from an EXCLUSIVE buyer's agent and to attempt to negotiate a commission rebate IF it is legal in their state and IF they will actually use less of the agent's time by being a savvy, educated shopper. I suspect most HN readers are savvy, educated shoppers who can use the web to save time and trouble for themselves and their agents, so most should be able to get a commission discount/rebate. I wish real estate rebates were legal everywhere, but some states have allowed lobbyists to overpower common sense and consumer rights.

brk 17y ago
You give some great advice, brk, buy you should know that the average buyer's agent commission is 2.5%, not 1% or 'nothing." I know this, but most listing agents will cover some or all of the buyers broker fee, so the actual buyer (typically) ends up paying somewhere between nothing and 1%. At least this is how it's worked on the 4 properties I've bought in the last dozen years. I didn't realize that he was renting instead of buying. My original advice was 100% geared towards buying. I've never rented, so have no good advice in that regard.
- Shooter 17y ago
  "most listing agents will cover some or all of the buyers broker fee, so the actual buyer (typically) ends up paying somewhere between nothing and 1%" One of my goals in life is to correct this misunderstanding among buyers. BOTH the buyer and seller pay for the agent services if they are used. Believe me, it is not your fault in thinking that the listing agent and/or seller pays for the buyer's fee, because that is the way the paperwork is worded and that's what everyone says, but it is NOT the complete story. Even most real estate agents don't seem to completely understand this fact. I want people to not get lost in semantics and to understand that, as a buyer, you WILL pay for any services you use (and you may even pay for services you don't use if you're not smart about it.) In the long run, you will pay even more than the seller. The fact that the HUD-1 form creates a fiction doesn't mean that you don't pay. If you REALLY understand how everything works, you can get a real value and service for what you pay, saving money in the overall process. If you don't understand how it works, you will pay for an agent who may not have your best interests at heart, and not even realize that you paid for this dubious benefit.

cpr 17y ago

Just remember that the realtor works for himself, not for you. His job is to maximize his commission, which is usually shared with the selling realtor. We found that out when we bought our first house back in the 80's in Connecticut. A very nice older lady was our realtor, and she really didn't serve us well. (Lots of house issues swept under the rug, so to speak, until it was too late.)

Shooter 17y ago
"Just remember that the realtor works for himself, not for you." That is great advice, no matter what kind of transaction you're entering into. I actually got involved with the real estate industry because I hated how it worked. It is ridiculous that incentives are so misaligned in this industry. I thought I could change some things in my small corner of the world, but I was too naive, and it will take much longer than I thought for me to have any impact. Unfortunately, most consumers simply don't care enough about their money to educate themselves. Sad and irrational, but true. I will not work with anyone who stands to make more money simply by getting me to pay more. There is NO WAY they can represent my interests if that is the case. In my real estate brokerage, buyers pay for the actual services they use. They know the cost up-front, and there are no incentives for me to try to get them to buy a specific property or a more expensive property, because I'm not paid based on an (arbitrary) percentage of the property price. In 99% of cases, the money they spend on me will be spent whether I help them or not, so my fees aren't even an extra expense. Yet I still have to spend (relatively) much more time than my competitors to educate them about how and why I can help them, just because I am different. It's like the entrepreneurial cliches about the stupidity of introducing a completely new product (pioneers get arrows in their backs, right? It's easier to move to territory that has already been settled.) There are real estate companies with good business models and good agents...they're just very rare :-(
brk 17y ago
Just remember that the realtor works for himself, not for you. No offense, but you have a firm grasp of the obvious. This is true almost 100% of the time when you are "hiring" someone to work for you. In any transaction you should do some research yourself, get some references, and so on. When buying properties, my wife and I have always used the agent as a sort of voice-command Googlebot. Tell her (it's been in a her in all of our cases) what we want, what our budget is (usually holding back about 10% of what we really want to spend), and then go over the listings we're sent. We'll often do a quick drive-by and scout the neighborhood first and then use the agent to make the appointments and shuttle us around, and then finally handle any paperwork. I always get a home inspection, and I go around with the inspector as he is going through the house. I also escort the inspector when he is going over properties I've sold (one inspector shorted out the fuse panel (yeah, fuses) when doing an inspection for a buyer on my first house. He was ham-handed when removing the fuse box cover, touched a fuse and made sparks. He tried to cite that on his report as a faulty fuse box and I called him on it and made him account for his own error). I also tend to make it pretty clear, in plain English, up front that I like to find realtors, lawyers, accountants, etc that I can work with over many years. Attempt to screw me now and you'll lose a significant amount of future/repeat business, plus referrals. Most people can spot a sucker, and can also spot someone who is knowledgeable. Spend some extra effort on the latter, and the whole transaction process will be easier and more rewarding.