Will we regret not having a buyers agent?

[jgenie]

We're looking at houses in the suburbs of NYC. We bought our current house with the help of a realtor because we were new to the area and we started the process from a different state. We found a couple of houses we would like to look at on the internet and are trying to decide if there are any downfalls to contacting the listing agents directly. TIA

[brittone2]

Why would you not want to use one?

In theory they are supposed to abide by certain ethical standards and represent the interests of both parties, but IMO it may not always turn out that way. In this market, I would definitely use one. The buyers and realtor are both going to want to squeeze the max $$ out of the transaction. I think on such a large purchase it is always best to have someone representing your interests. If you are a buyer it typically isn't at any cost to you, so IMO it is a good idea in general. In the current market, you really don't want to overpay.

We did buy our current house from the owner; neither of us used a realtor and we drafted everything with attorneys.

[mom3boys]

I had a similar situation. DH and I lived in the area already (also just outside NYC) and we had just started looking at houses--I would see them on the internet or whatever, we had gone to a few open houses, but we did not have a buyer's agent. I was interested in one house in particular and since we didn't have our own agent, I just called the listing agent so he could show us the property. We ended up wanting to buy the house (which we did) and the listing agent became our agent as well (I can't remember what that's called, dual representation or something like that)

Anyway, I will never do it again and I do not recommend it. I never felt like the agent could properly do his job for us (i.e., get us the best deal possible), because he had a complete conflict of interest in that he also needed to do the job for his seller (i.e., get THEM the best deal possible, which meant us spending more money, and this is also in the realtor's best interest because his commission is higher if the sales price is higher). I don't know if you are looking in NJ, where we are, but in NJ even after your bid is accepted, there are still 3-4 days where the bid is in attorney review and while that's happening another bid can be accepted. While we were in attorney review this happened (I guess) and our agent told us we would now need to bid X to get the property. I have no idea if we really needed to bid X or not, because it was impossible to know if he was in collusion with his buyer to get them more money. We were sour about it but we did bid X (it was a seller's market at the time).

I know it is a pain if you just want to look at a couple houses and there are no open houses scheduled, to go get your own realtor, but I would recommend doing that. You can certainly have the listing agent show you the house but if they want you to sign a "right to represent" before they will show it to you, I wouldn't do that. Even getting a different realtor in the same office would be better than having the exact same realtor be the listing agent and the buyer's agent.

ETA: Also, as the buyer it won't cost you any money to have your own agent. I can see why a seller would not use an agent, but not a buyer.

[Mommy_Mea]

I would recommend you get your own agent. If you tour the houses you are interested in, and decide to keep looking, it would be best to have your own agent to continue looking with. They have seen what you do/don't like, and they can help you moving forward.

And I agree with the issues on dual agency pp mentioned. Just doesn't seem like they could ever have your best interests in mind...

Plus, if you blindly call the listing agent, tour the house with them and want to make an offer, you are stuck with them, whether you like them or not!

[jgenie]

Why would you not want to use one?

The thought of making the time to interview agents to pick one just seems so daunting. Monday is a holiday and DH will be off so we can see the houses without him having to take time off and we'll have someone here that can watch the boys.

If we let the listing agents show us the house but have no plans to put in a bid now are we obligated to them if we later decide we are interested?

TIA

[mom3boys]

If we let the listing agents show us the house but have no plans to put in a bid now are we obligated to them if we later decide we are in interested?

TIA

I don't think you are obligated to do anything unless you sign a right to represent agreement. If the listing agent will show you the house without one (basically, the same thing that happens in an open house), then you should be OK. Then if you like the house enough to consider it, get your own agent later.

[Giantbear]

I bought a house this summer and did not use a buyers agent. I had a friend who was an attorney with their broker's license "represent me" and i did all the leg work with the agents. Most agents were friendly enough, but a few hated that they were only getting half commission but had to deal with the buyer. You have to be very comfortable negotiating on your own behalf and have to be very knowledgable about market value in the area you are looking. I studied the market in the town we moved to for two years and am used to negotiating business deals.

If you do not use a scenario where you have your own "broker", then the RE office of the broker with the listing will assign one to you and that person will get the half commission. If you are not going to save the commission, then there is no reason to avoid a buyer's broker.

[twowhat?]

If you can find a good buyer's agent (through word of mouth or whatever), they are worth their weight in gold. Just having someone experienced who can represent you AND who can also tell you when you're putting emotions before sense is invaluable. Ours would actually tell us "I wouldn't offer more than XXX - if it gets to that point, you walk away."

[cvanbrunt]

Yes, you will.

[amldaley]

We looked at houses on our own at first, but I would either go with an agent in the final stages of selection unless you are VERY real estate savvy yourselves AND you have a state which uses closing attornies vs closing agents.

The sellers agent has a contractual obligation to, while still being ethical, protect and advocate for the sellers interests, not yours. You either have to really know what you are doing or have someone do it for you.

I would not, however, sign an exclusive Buyers Agent agreement until you get down to the selection and you know you like the agent.

[megs4413]

yes. yes you will.

[jgenie]

Thanks everyone - I was figuring as much. So, should we try to see these two houses on Monday or should we wait until we find an agent we like? TIA

[amldaley]

Thanks everyone - I was figuring as much. So, should we try to see these two houses on Monday or should we wait until we find an agent we like? TIA

I would go ahead and see the houses, I just would not sign ANYTHING and I would make it clear to the sellers agent that while you are seriously looking, you will not be making an offer without a buyers agent. Just explain that you need to take advantage of the day off work and you really did not want to wait to see the houses. In this market, most agents will be VERY happy to show the houses to you!

[twowhat?]

Thanks everyone - I was figuring as much. So, should we try to see these two houses on Monday or should we wait until we find an agent we like? TIA

By all means, go and see the houses! But keep your comments to yourself - when you talk to the listing agent, give "negative" feedback and not positive feedback i.e. say "I was disappointed at the bedroom sizes upstairs" or "I didn't like the wasted space in that large living room" and not "Wow, I love the kitchen and the sink in the laundry room - perfect for our needs!"

Have fun:)

[mom3boys]

I would go ahead and see the houses, I just would not sign ANYTHING and I would make it clear to the sellers agent that while you are seriously looking, you will not be making an offer without a buyers agent. Just explain that you need to take advantage of the day off work and you really did not want to wait to see the houses. In this market, most agents will be VERY happy to show the houses to you!
:yeahthat:

[mackmama]

I'd get your own agent. I think it's always good to have someone representing solely your interests - rather than an agent representing both buyer and seller.

[jenfromnj]

We're looking at houses in the suburbs of NYC. We bought our current house with the help of a realtor because we were new to the area and we started the process from a different state. We found a couple of houses we would like to look at on the internet and are trying to decide if there are any downfalls to contacting the listing agents directly. TIA

I agree with those who said it's probably best to avoid a dual agency if possible. From my experience (living in NNJ and practicing as a real estate lawyer here and in NYC and Westchester) dual agents tend to be more loyal to sellers, both because they are the ones who pay the commission and because they want to get a commission on the seller's purchase, if possible. There are some great agents in this area, and given the state of the market and the time of year, I'm sure most of them would welcome the chance to show you some places. If you know anyone who already lives in your desired area and has purchased in the past few years, don't hesitate to ask for recs (or who you should avoid!)-or if you are looking anywhere in NNJ or Westchester/Rockland County, I can most like point you toward a few good and reputable agents, if you'd like a starting point.

Good luck and happy house hunting!

[AnnieW625]

We met the real estate agent we used at an open house. She was showing the home for another agent and we got along with her really well and then she ended up reprsenting us. I woukd probably want a buyers agent but have had friends who have done it without though. We are in California though so I remember from real estate classes that I took in college that many other states have different rules and require an attorney to close a deal and such but I don't remember all of the details.

[JoyNChrist]

Just FYI, we used a dual agent when we bought our house and it wasn't a problem. But the house was reasonably priced, there weren't many things we had to negotiate on, and overall it was just an easy buy/sell. I'm not sure if we would go that route again (depends on the situation), but we certainly don't regret it.