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Who is on my side

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llexx
Established Member

Who is on my side

So I have been working with a realtor and a mortgage person but I am not sure if they are really on my side or looking out for their best interests. Both have been helpful in terms of finding properties that match what I am looking for and running the numbers to see what my costs would be at closing for several of them. 

 

I am about to make an offer soon and my realtor has asked me what I want to offer can I ask her for her opinion or what? I feel like this is akin to going to the dentist and telling him what he should do to my teeth.

 

I don't know people who have bought homes so no one really to ask for advise. I am feeling very alone in this process!

Message 1 of 6
5 REPLIES 5
StartingOver10
Moderator Emerita

Re: Who is on my side

Your Realtor should be showing you the recent sales of similar properties that have closed in the same neighborhood as the property in which you are interested. You both then come up with an offering strategy based on those sales and what price you are willing to pay. This price differs from person to person, but you would know, before you make your offer if you are offering market price or below market etc.  You only know that if you have seen what has already sold and closed. The market changes and each neighborhood is different. Some neighborhoods are in high demand and others are flat or even declining. Analyze the market so you know where the house is priced relative to what has sold but make sure you are looking at actual comps.  Some people get confused and use any sale in the neighborhood. You want to see those sales that are closely aligned with the subject property's attributes.

 

Is your Realtor the listing agent for the specific property you are interested in purchasing or your agent?  It makes a difference. 

 

Ideally, your agent is representing your interests. If you are working with the listing agent then the listing agent is either operating as a "transaction agent" or a "dual agent" - depending upon your state's real estate statutes.  

 

You should be working with an agent that represents you. Ask that of your agent. You should  direct your questions to your agent for the real estate portion and for the loan portion, discuss the options and details with your loan officer.  

Message 2 of 6
Gunnar419
Valued Contributor

Re: Who is on my side


@StartingOver10 wrote:

Ideally, your agent is representing your interests. If you are working with the listing agent then the listing agent is either operating as a "transaction agent" or a "dual agent" - depending upon your state's real estate statutes. 


Absolutely. The legalities do vary from state to state, but as a practical matter you want to be reassured that somebody is truly on your side, protecting you from bad advice, fraud, etc.

 

While my circumstances were not exactly analogous to the OP's I found myself in one of those "who's on my side" situations last time I sold a house. I listed with a great, energetic agent. He also happened to bring in the winning bidder. That was fine until the buyer was nowhere to be found on closing day and couldn't even be reached by phone. When the agent made excuses for the buyer, I realized my interests weren't being represented. I told him he was a good guy but now there was an obvious conflict of interest and I needed somebody who was exclusively representing me.

 

He told me his broker would meet with me. I thought the point was for her to take over representing my interests and to tell me what my options were (anything from granting a short extention to forfeiting the buyer's earnest money). But when I sat down with her, she immediately made  more excuses for the buyer and continued to do so even after I objected. She lectured me to be patient as though I was a nuisance for expecting to close on closing day, or even ask questions about the buyer's intentions. I was furious and even got up to walk out at one point, but at that point there was really nowhere else to turn. The deal did eventually close, but only after many more weeks and a whole lot more flakiness on the buyer's part and sketchy information from the people supposed to be representing me.

 

I don't mean to take away from the OP's question. I'm just saying I know how vital it is to know that the agent or broker you're working with is both legally and ethically on your side, as well as being competent and knowledgeable.

Message 3 of 6
iced
Valued Contributor

Re: Who is on my side


@llexx wrote:

So I have been working with a realtor and a mortgage person but I am not sure if they are really on my side or looking out for their best interests. Both have been helpful in terms of finding properties that match what I am looking for and running the numbers to see what my costs would be at closing for several of them. 

 

I am about to make an offer soon and my realtor has asked me what I want to offer can I ask her for her opinion or what? I feel like this is akin to going to the dentist and telling him what he should do to my teeth.

 

I don't know people who have bought homes so no one really to ask for advise. I am feeling very alone in this process!


Caveat Emptor.

 

Always assume they are looking out for their best interests, not yours. You're a commission to them. Some people get lucky and find a good realtor, but they're also usually in a position to use a realtor often enough the realtor won't bite the hand the is a gravy train to them. The problem is you can't really know, hence why I say the safe play is never trust them.

Message 4 of 6
StartingOver10
Moderator Emerita

Re: Who is on my side


@iced wrote:

@llexx wrote:

So I have been working with a realtor and a mortgage person but I am not sure if they are really on my side or looking out for their best interests. Both have been helpful in terms of finding properties that match what I am looking for and running the numbers to see what my costs would be at closing for several of them. 

 

I am about to make an offer soon and my realtor has asked me what I want to offer can I ask her for her opinion or what? I feel like this is akin to going to the dentist and telling him what he should do to my teeth.

 

I don't know people who have bought homes so no one really to ask for advise. I am feeling very alone in this process!


Caveat Emptor.

 

Always assume they are looking out for their best interests, not yours. You're a commission to them. Some people get lucky and find a good realtor, but they're also usually in a position to use a realtor often enough the realtor won't bite the hand the is a gravy train to them. The problem is you can't really know, hence why I say the safe play is never trust them.


^^^This is just wrong. There are agents like that...stay away from them. Most of us that are in it as a career for the long term aren't like that at all. You can't be in the real estate business for long if that is your attitude (as an agent). It sounds like iced has had a very bad experience and blames the entire industry on his experience.

 

Just like every profession:  there are good agents and there are bad agents and there are a bunch of agents in between the two extremes. Interview an agent before you work with them to find out what they know and how they work. Most of the time you can spot a bad agent by the answers/information they give you.

 

There are some general rules to follow. An example would be that the "agents" that work for builders represent the builders zealously and if you don't have your own agent, you will pay top dollar and get fewer credits.  If you get a noob agent, it will cost you in time, money and frustration (there are exceptions to this rule).  The best way to weed out a bad agent is through an interview of the agent. You will want to find out their agency relationship (transaction agent, single agent, non-representation etc). Look up the agency relationships in your state to see what the choices are and then ask your agent all about it.

 

The best resource is through personal referral by friends and family that have used their services. If you don't have anyone, you can go to CRS.com which has experienced agents and check to see who is in your area. Less than 5% of the Realtors are *CRS designated because there is a rigorous approval process (not just a class and a fee). 

 

*CRS = Certified Residential Specialist

 

 

Message 5 of 6
iced
Valued Contributor

Re: Who is on my side


@StartingOver10 wrote:

^^^This is just wrong. There are agents like that...stay away from them. Most of us that are in it as a career for the long term aren't like that at all. You can't be in the real estate business for long if that is your attitude (as an agent). It sounds like iced has had a very bad experience and blames the entire industry on his experience.

 

Just like every profession:  there are good agents and there are bad agents and there are a bunch of agents in between the two extremes. Interview an agent before you work with them to find out what they know and how they work. Most of the time you can spot a bad agent by the answers/information they give you.

 

There are some general rules to follow. An example would be that the "agents" that work for builders represent the builders zealously and if you don't have your own agent, you will pay top dollar and get fewer credits.  If you get a noob agent, it will cost you in time, money and frustration (there are exceptions to this rule).  The best way to weed out a bad agent is through an interview of the agent. You will want to find out their agency relationship (transaction agent, single agent, non-representation etc). Look up the agency relationships in your state to see what the choices are and then ask your agent all about it.

 

The best resource is through personal referral by friends and family that have used their services. If you don't have anyone, you can go to CRS.com which has experienced agents and check to see who is in your area. Less than 5% of the Realtors are *CRS designated because there is a rigorous approval process (not just a class and a fee). 

 

*CRS = Certified Residential Specialist

 

 


My point is that we can't tell good ones from bad ones with certainty (and you yourself stated there are good ones and bad ones), so as the buyer the prudent thing to do is assume none of them can be trusted. An interview is hardly telling of trustworthiness.

Message 6 of 6
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