Real estate agents, please explain

amother

OP ↓

Tue, Sep 10 2024, 10:55 am

I’m trying to understand how the process works.
For example, all listed homes have an agent. When I call, they ask if I have my own agent. Why would I need my own agent?
I understand that it’s helpful to have someone looking out specially for me, or someone who would know off market deals.
But is it socially off to just call seller agents while not being tied to anyone? What am I missing?

Molly Weasley

Tue, Sep 10 2024, 11:45 am

The listing agent gets a percentage of the sale, but if you have your own personal agent and it's an MLS listing, your agent is allowed to represent you and will receive her own commission.
The commission she receives is taken off the total commission given to the listing agent

Eta,
They're essentially asking if you have your own real estate agent. If you do, the listing agent would share the commission with your agent. However, if you don't have your own agent, the listing agent would receive the entire commission, and she'll be happy to help you.

amother

Hotpink

Tue, Sep 10 2024, 11:51 am

I'm not an agent but bought a house a few years ago....

There is a sellers agent and often a buyers agent.

When a house sells the current law is the seller has to pay a percent to both agents. They want to know if you are going thru an agent, the seller would need to pay your agent, or if you are on your own.

You don't need your own agent. But an agent will help with paper work, guide you on time lines of the process (you have x amount of days from signing a contract for inspection and what to do if there are things found during inspection, etc), and help with any hiccups. They helped you through the whole process. If you want to do it alone, you can. IYH you know what to do, and when, and it should go smoothly. But if you don't know what you're doing, it's to your benefit to make sure you don't get messed over and have someone walking you through the transaction from A to Z.

We would never have been able to buy our house without an agent. The seller did some hanky-panky that would never have been solved if we didn't have our agent and title/closing lawyer helping us figure it out and solve. We almost lost the house with the shtick the seller was pulling (to be honest, I don't think the seller realized what he did wasn't so OK).

amother

Turquoise ↓

Tue, Sep 10 2024, 11:51 am

We bought our home off market with no agents (on both sides), but we also had an agent helping us look at some other homes. Agents get paid from fees paid when you sell/buy a home.
You do not need and agent, but it is helpful. Most people don't buy a home without using an agent.

Amarante ↓

Tue, Sep 10 2024, 12:01 pm

If you are buying in New York and are knowledgable, an agent is not necessary and can save you money

In New York real estate attorneys are part of the process whereas in other states they are not typically involved but if you are in another state and are knowledgable you can look on your own and just hire an attorney to make sure that all the paperwork is correct and legal and they will protect your legal interests. My friends in California have bought homes this way. My parents sold their home in Brooklyn without an agent on either side but just attorneys

There is a new ruling regarding fees paid to buyers' agents which are still in flux.

However, the bottom line is that if you don't have ANY agent, you can theoretically save money when you negotiate. That is because the commission paid by the seller is 6% or at the very least 5% which is typically split between agent for buyer and seller. If there is no buyer's agent then the seller can save that portion of the commission - again works if you are knowledgable and feel comfortable without a buyer's agent theoretically advising you.

Personally I would not want to have a situation in which the buyer's agent is representing both the buyer and the seller because it would create an impossible conflict of interest even though it is done.

amother

↑ OP ↓

Thu, Sep 12 2024, 4:04 pm

Thanks for all of the replies.
So we do not have a buyers agent and we’ve just reached out to various seller agents to view the houses they listed. But now some of the agents are sending me homes and reaching out to me. I kind of feel bad about it since they are working on my behalf but I am not committed to them. I hear the point about conflict of interests. I’d hope most honest agents wouldn’t try to sell me overpriced houses for their own benefits but with such an inflated market it’s hard to know the difference.

amother

↑ Turquoise ↓

Thu, Sep 12 2024, 5:22 pm

amother OP wrote:

You should get an agent.... you should not rely on the selling party's agent.

amother

Stoneblue

Thu, Sep 12 2024, 5:25 pm

As someone in the business, please get yourself an agent who is looking out for YOU and going to negotiate for YOU not the seller. It is a bad idea to use the same agent as the seller. In addition, the way you are working makes you nobody's client so nobody is looking for houses for you.

amother

↑ OP

Thu, Sep 12 2024, 6:28 pm

I never considered that (we are new to this obviously). Thank you! How does one usually choose an agent? Do you just call and say hi I’m looking for a house please help?? Because from what I understand, they only earn money if they actually find me a house…

amother

↑ Turquoise

Thu, Sep 12 2024, 6:30 pm

amother OP wrote:

Yes, that is what you do. Ask for recommendations in the area if possible.

↑ Amarante

Thu, Sep 12 2024, 6:50 pm

amother OP wrote:

There was a recent lawsuit which theoretically changed the way in which agents for a buyer are compensated.

Previously the most standard was that the seller agreed to pay their agent either 6% or 5% which was split with the buyer's agent.

The price was "baked" into the price of the home effectively since the seller would factor in the agents' total commission in terms of pricing the house.

Theoretically no agent or lower commission meant the price of a house could be lower.

It is not entirely clear how this will wind up as it is still new but now a buyer has to sign an agreement with their buyer's agent and agree to buy them the commission that they negotiate. Or theoretically you could pay an agent by the hour for their services.

This is literally only been in place for about a month and so no one is clear exactly how it is going to be handled - only that the old model of the seller paying 6% and the buyer theoretically not paying anything is no longer legal.

chocolate moose

Fri, Sep 13 2024, 1:40 pm

I work in real estate in new york and did my own closing. you need an attorney of record but you don't really need an attorney to buy and sell real estate. of course if you're not in the biz you might miss something.