why do I need a realtor to BUY?

[DementedReality]

Originally Posted by Winsor_Pilates

To the OP, I think you should just try buying without a Realtor if you feel strongly about it. If it works out for you, great!
It seems you're looking to bait Realtors into an argument here, where any half decent Realtor would just respect your opinion and wish you well.

Why would we want to represent a buyer who doesn't value our service anyway? If simply saving the buyers agent commission is what you're after, than power to you.

i think you have it wrong and will leave it at that since i clearly touched a nerve with you.

[troutman]

Why Use A Realtor?

http://www.creb.com/public/why-use-a...-a-realtor.php

Going It Alone:

http://www.creb.com/public/why-use-a...g-it-alone.php

[SeoulFire]

Originally Posted by troutman

Why Use A Realtor?

http://www.creb.com/public/why-use-a...-a-realtor.php

Going It Alone:

http://www.creb.com/public/why-use-a...g-it-alone.php

To summarize:

Using a realtor has great "benefits" as they created an exclusionary system that makes it almost necessary to use a realtor.

Not using a realtor means you are excluded.

I would hardly trust the source (CREB) as being unbiased as it is in their best interest to keep the system as is.

[Kavvy]

Thank you for all posting here, as I will be buying my first place in the coming months, this discussion has been extremely informative for me!

[DementedReality]

Originally Posted by SeoulFire

To summarize:

Using a realtor has great "benefits" as they created an exclusionary system that makes it almost necessary to use a realtor.

Not using a realtor means you are excluded.

I would hardly trust the source (CREB) as being unbiased as it is in their best interest to keep the system as is.

thats kind of the impression I get as well ... again, with all due respect to the hard working realtors who are members of this forum. i was not baiting, instead looking for honest feedback.

[newts]

I'm a realtor, and here's my thoughts on this.

Although I'm capable, I don't change my own engine oil because I don't want to. I pay a premium to someone to do it.

Although I'm capable, I didn't write my own will for my wife and I because I didn't want to. I paid a premium for someone to do it for me.

Although I'm capable, I don't rake/fertilize my lawn in the spring because I don't want to. I pay someone a premium to do it.

etc...

If you have the ability, time and no how to buy/sell your own place, you should do it. Save the money!

If you want someone to handle it for you, call me and pay me. You want to negotiate fees? Let's do it.

For everyone I come across who has the ability and time to manage the whole process themselves, I come across ten people who don't know where to even start, or don't have the time to do it. It's not rocket science, but my clients time is their money, and in this case they put their trust in me to handle things. For that I get paid.

[Tolwyn]

Everyone has different opinions on the matter. At the end of the day, do your homework -- ask for references and talk to other realtors. I've had bad experiences with realtors myself through friends and family -- at the same time, I've also had very good ones. I'd be more than happy to act as a reference and give you the name of a realtor that I trust implicitly as well.

There will always be a few bad apples. Heck, not all car mechanics are rip-off jerks, and not all car salesmen are slimy Larrys either.

To me, hiring a realtor that I trust and can work well with is a big deal. That's their line of business -- not mine. I don't need to know how everything works or all the ins and outs. I want to sell the house and buy another; and having someone you can trust and act in your best interest is very important to me. My time is extremely valuable to me both financially and personally; it's not a good use of time and resources for me to do this real estate stuff myself when I can get a pro to do it.

Bottomline, it is your time and money to do what you want with it. I'd just recommend knowing all the facts and doing your homework first.

[SeoulFire]

Originally Posted by newts

I'm a realtor, and here's my thoughts on this.

and mine as well!

Although I'm capable, I don't change my own engine oil because I don't want to. I pay a premium to someone to do it.

But you have unlimited access to the resources that would allow you to do so.

Although I'm capable, I didn't write my own will for my wife and I because I didn't want to. I paid a premium for someone to do it for me.

I am not sure on this one.

Although I'm capable, I don't rake/fertilize my lawn in the spring because I don't want to. I pay someone a premium to do it.

But you have equal and easy access to the materials that would allow you to do so effectively.

etc...

If you have the ability, time and no how to buy/sell your own place, you should do it. Save the money!

If you want someone to handle it for you, call me and pay me. You want to negotiate fees? Let's do it.

For everyone I come across who has the ability and time to manage the whole process themselves, I come across ten people who don't know where to even start, or don't have the time to do it. It's not rocket science, but my clients time is their money, and in this case they put their trust in me to handle things. For that I get paid.

People who want to do it themselves are extremely limited as a function of the system that realtors created. Hence, the self-licking ice-cream cone analogy for the industry.

I should actually qualify what I wrote as well - I don't mean to belittle the hardworking realtors that are out there (I know you exist somewhere) but I have had terrible experiences in the past (3 buys and 2 sells) with little value added and lots of value taken.

My beef is that, while the option is there, the system (created and maintained by realtors) makes it extremely difficult to do so independently and there is not enough of a barrier to entry to promote confidence.

[bizaro86]

Originally Posted by SeoulFire

My beef is that, while the option is there, the system (created and maintained by realtors) makes it extremely difficult to do so independently and there is not enough of a barrier to entry to promote confidence.

While I kind of agree with you on this point (and I'm not a realtor nor do I play one on TV) the bottom line is the system is what it is. While there are some pretty strong arguments in favour of changing it, unless and until that happens it makes sense to use a buyer's agent when you're buying a place. In a hypothetical world where I was in charge of the system I might change it, but since that hasn't happened I may as well work inside the system to the best of my abilities.

No sense hitting your head against a wall just because you don't think there should be a wall there.

[troutman]

I have seen a number of clients "go it alone" and assume the lawyer will give them all the same advice a realtor can (and for free). This is not our expertise necessarily, or part of our normal core services.

[Travis Munroe]

All around great debate...I understand those whom are against it and feel that many will not understand the true value in a realtor's services until they have tried to go at it alone.

[Winsor_Pilates]

Originally Posted by DementedReality

i think you have it wrong and will leave it at that since i clearly touched a nerve with you.

My apologies if I got it wrong.
Didn't touch a nerve, just seemed you already have your mind made up & maybe weren't really looking for any answers. I guess I could be wrong.

Ultimately, the onus is always on the agent to prove their value as either the listing or buying agent. Like any service, If they can't prove that value you shouldn't hire them.
A decent agent should always have their services and values spelled out for you when you meet them. It can be adjusted depending on the needs of each client, but in my obviously biased opinion good agents do add value to the process and that's why they're able to get repeat customers, referrals and make a living.

[Winsor_Pilates]

Originally Posted by SeoulFire

My beef is that, while the option is there, the system (created and maintained by realtors) makes it extremely difficult to do so independently and there is not enough of a barrier to entry to promote confidence.

Would agree with this whole heartedly. It used to be mandatory to be full time if you were going to be a Realtor in Vancouver.
You also needed to be sponsored and approved by a brokerage before being able to go out and get a license.
The quality of the industry is really degraded by the fact that pretty much anyone can get a license and call themselves a Realtor.

[Travis Munroe]

^^^ with that being said,
it is up to the public to do their research as to whom they hire.
A few simple questions can weed out 50% of agents.

[ken0042]

Question for you Travis- if a first time buyer is asking you to be their agent; do you ask them to sign a contract?

I ask because I didn't sign one until we were putting in an offer (which is understandable at that point)- however a few friends who have used what I consider "questionable agents" they asked them to sign a contract right away. I'm just wondering if my agent was too trusting, or if the immediate contract was something to watch out for.

[onetwo_threefour]

Late to the party, but I had a few thoughts to add.

Reasons to use a realtor include, but are not limited to:

Buyer's agent can and should pull title to the property and review the title before an offer is made. Technically, Joe Public can do this himself, but does Joe Public know what to think when he sees a reservation agreement on title or a road widening plan, or a development agreement?

Buyer's agent is in a fiduciary relationship with Buyer meaning the agent has a duty of 'utmost good faith' to the Buyer and consequences if such duty is not upheld. This duty ensures that the level of service you are receiving from the agent representing you is not diluted in any way by divided loyalties. DementedReality's earlier comment about motivation is a perfect example. While it is true that the listing agent would not be allowed to disclose the Seller"s motivation, if you have a savvy Buyer's agent who pulls title and notices that there is a CLP on title that looks like it was filed by a spuse, there is nothing at all wrong with that Buyer's agent suggesting to the Buyer that it looks as though there may be a divorce motivating the sale. The Buyer's agent has not duty to the Seller to keep the Seller's motivation hidden, except where the buyer's agent is a dual agent.

Buyer's agent has E&O insurance.

Those are just a few reasons to use a Buyer's agent.

BTW, in answer to the question about signing a Buyer's Agency/Brokerage Agreement right off the bat, I would not call it a warning sign. I always recommend to new realtors that will be representing buyers that they make a habit of it. Some do, some don't. Often the guys who've been a round for a few years and have been burned by a Buyer or three stringing them along will start asking for the agreement up front.

[Drury18]

Originally Posted by ken0042

Question for you Travis- if a first time buyer is asking you to be their agent; do you ask them to sign a contract?

I ask because I didn't sign one until we were putting in an offer (which is understandable at that point)- however a few friends who have used what I consider "questionable agents" they asked them to sign a contract right away. I'm just wondering if my agent was too trusting, or if the immediate contract was something to watch out for.

I was attempting to be a first time buyer a couple of years ago and the realtor I was working with (as recommended by my insurance broker) never had me sign any sort of contract stating they were my agent. The only things I ever signed were the offers. Of which I ended up putting in offers 8 different times on 8 different places over a span of 6 months, all of which were never followed up on and lost to other more agressive agents acting on behalf of their clients.

[fredr123]

I'm not entirely sure what this means, but in the couple dozen or so mortgage fraud cases I have worked on so far, they were all private sales with no realtors involved. I'm not one to confound correlation with causation but the absence of realtors in a real estate transaction is a red flag for me.

[Travis Munroe]

Over the years I have had 1, maybe 2 people sign a buyers brokerage. Although many agents (and very successful ones) swear by it I have a different view.
I feel that I am pretty good at reading people and can tell right away if they are using me to find places so that they can save their friend/aka realtor time and then write the offer with him/her.
If I am doing my absolute best job and performing in a way that the buyer is happy then I see no reason as to why they wouldn't use my services from start to finish. The client has a choice of over 5000 realtors to use and they have chose me. It is my job to work for them and ensure they stick with me instead of having a security blanket of knowing they are forced to stay with me.

I wanted to crack a joke about a buyers brokerage equaling a NMC but couldn't find the right context to put it in lol.

[Winsor_Pilates]

I too don't use exclusive buyers agreements, but know of many good realtors who do. It's a personal thing I guess. To me working in good faith and earning the right to represent the buyer is enough, but I'm luckily yet to be burnt on is. Touch wood