What good is an agent??? - Posted by Houserookie

Posted by Houserookie on February 08, 2001 at 11:24:38:

Thanks for correction.

What good is an agent??? - Posted by Houserookie

Posted by Houserookie on February 07, 2001 at 17:06:16:

Agents can’t negotiate for buyers or sellers.

Agents don’t specialize in marketing.

Agents don’t give legal advice.

Agents don’t give tax advice.

Why would anyone want to pay 7% for someone to
show their home?

Re: What good is an agent??? - Posted by dewCO

Posted by dewCO on February 08, 2001 at 09:53:51:

I think you’ve gotten a good list of “thngs” an agent can provide. Is that what you were looking for, or ws this another provacative discussion thread, as yours usually are, and I mean that in a positive way!!!

Re: What good is an agent??? - Posted by Yasmin

Posted by Yasmin on February 07, 2001 at 23:01:36:

  1. only a fool would pay 7% for a typical SFR listing
  2. liability reduction
  3. increased market exposure
  4. time savings
  5. office support
    Why do I get the felling that you are always trying to sell something?

Re: What good is an agent??? - Posted by Ron (MD)

Posted by Ron (MD) on February 07, 2001 at 18:05:47:

I sometimes (but not often) multilple list my rehabs. More often, I will pay a 3% co-op commission when a realtor has a buyer for my fsbo. I really like selling to a buyer represented by a realtor, but I usually don’t do it because I prefer to keep the commission.

What does a realtor offer that I like? Well, there’s a number of things:

– There buyers are almost always qualified. Most realtors won’t drag around buyers who haven’t been financially screened. The large majority of the buyers who call me directly are unqualified.

– I don’t have to waste my time on the phone singing the praises of the rehabs to prospects I later find out are unqualified. (I don’t show a house unless I’ve pulled the buyer’s credit report, but I still have to talk to them prior to getting to the credit report.)

– The realtor provides a nice buffer. Buyer’s often get home inspections (whether represented by a realtor, or not). I usually do more punchlist repairs for my direct buyers. Realtors seem to use near-blind inspectors who see very little, and half of what they do see I don’t have to repair because the realtor discourages buyers from asking for repairs.

– Realtors, including buyers’ agents, have one interest uppermost in their mind – their own. As a result, they want to get the deal under contract and to settlement, even at their buyer’s expense. What I typically see is realtors call me prior to writing a contract to determine from me what acceptable terms will be. I usually pay lower buyer closing costs if a buyer is represented. I never negotiate price. A good, recent example was a house that I did have multiple listed. I was about to reduce the price by $5k because it was getting little activity. Out of the blue, an agent calls to show it. Since I wanted to move the house, I told him about the pending price reduction. The next day, I got a contract…at the original, higher price (and he was a buyer’s agent).

I’m often tempted to multiple list every one of my rehabs to take myself out of the sales business. It would free up a lot of time I spend on the phone with prospective buyers. The commission is not that big a deal (especially since it is usually partially offset by lower contribution to buyer closing costs). Nevertheless, I keep telling myself that if I sell 15 houses per year without realtors, I save $40-$50k in commissions. (On the other hand, if I never have to talk to another prospect, I could probably comfortably do two more rehabs per year for the same net.)

So, I disagree with you. Realtors have a lot to offer (at least when I’m a seller). They don’t offer legal advice (but neither does my CPA). They don’t offer tax advice, but neither does my lawyer. They do have motivated, qualified buyers.

Ron Guy

Is It The Agent Responsibility? - Posted by Houserookie

Posted by Houserookie on February 09, 2001 at 24:41:33:

I’ve heard people say that agents are this
and agents are that… because they lack
skills in creative financing. Or maybe they
dont’know to offer homes on seller
financng and then selling note at closing. Or
maybe suggesting L/O when homes don’t sell.

But is it the agents responsibility to teach
their clients these things?

I know agents that will buy books for their clients
on how to sell homes fast, and altertives to
conventional methods, but I don’t see many agents
teaching or showing people how to do it.

Is this due to legal reason?

Re: What good is an agent??? - Posted by Houserookie

Posted by Houserookie on February 08, 2001 at 11:27:44:

Thanks Dew…

Provocative? Well maybe so…

Re: What good is an agent??? - Posted by Houserookie

Posted by Houserookie on February 08, 2001 at 24:52:41:

I hope you’re not an agent. If you do I think your
persuasion ability needs improvement.

A statement such as “Only a fool would do this and do that” shows a lack of conscience.

You are suggesting that a person is a fool when
you have yet to understand the basis of the discussion.

Re: What good is an agent??? - Posted by Houserookie

Posted by Houserookie on February 08, 2001 at 24:49:18:

If u are getting the feeling that I am selling
something, I thik u have poor insight.

I have yet to sell anything on this board.

Re: What good is an agent??? - Posted by Houserookie

Posted by Houserookie on February 07, 2001 at 19:43:29:

Can they legally show sellers or give
selling advice?

Re: What good is an agent??? - Posted by Houserookie

Posted by Houserookie on February 07, 2001 at 19:33:59:

When u say multiple list do u mean
open listing with agents???

When they bring buyer you pay, if not
you don’t?

Using the example of 15 homes you gave it makes sense.

My experience, if you wait for pre-qualified buyers,
you could lose the many buyers that did not get
pre-approval but could.

ONe of the selling methods I’ve been reading about
is by Bill Effros that preach selling using
auction style.

Using prescreen buyers, you could limit the offers
received. ONe of those unqualified buyers could
pay you at PREMIUM.

Re: Is It The Agent Responsibility? - Posted by dewCO

Posted by dewCO on February 11, 2001 at 10:25:42:

No legal reason that I know of. I’ve never heard of any agents buying creatively. That doesn’e mean they don’t, of course, I just have never heard them talking about it, even in agent “circles” and conversations. So I just figure for the most part they don’t know about it. Also, if agents gave comps to every buyer and the buyers all bought creatively, they’d be out of a JOB, which is what most of them have.

Re: What good is an agent??? - Posted by Ron (MD)

Posted by Ron (MD) on February 07, 2001 at 21:18:55:

Can they “show sellers”? I don’t understand that question.

Can realtors legally give selling advice? Listing agents certainly do give selling/marketing advice. However, if you are using a “flat fee” listing broker, selling advice will be limited or non-existant. Agents are encouraged to insure that the list price is set by the seller (an not the agent), with information provided by the agent.

Ron Guy

Re: What good is an agent??? - Posted by Ron (MD)

Posted by Ron (MD) on February 07, 2001 at 21:10:32:

Most recently, I’ve been using a broker that will multiple list your property for a nominal, flat fee. Here, that is usually about $200. This listing agreement is not an exclusive right to sell. If you sell it yourself, no additional commission is paid. If a realtor provides the buyer, you pay their half of the commission, which is usually 3 or 3 1/2 %.

This gives you the best of both worlds.

My only concern about these flat fee listing brokers is how their listings are viewed by buyer’s agents. If some of the selling agents don’t like to deal with flat fee broker properties, your showings will be limited.

Ron Guy

Re: Is It The Agent Responsibility? - Posted by Houserookie

Posted by Houserookie on February 11, 2001 at 12:22:19:

Hi Dew,

I suppose the time it takes to educate each client
could eat up his free time.

As to giving comps to every buyer, it’s
already happening right now.

Aren’t Buyer Agents required to represent his client.
That would include proving MOD, market comps, status,
and other MLS info…

Re: What good is an agent??? - Posted by Houserookie

Posted by Houserookie on February 07, 2001 at 22:52:20:

They are “encouarged” so that must mean that
they are not legally allowed to suggest the
selling price?

But I suppose if AGENT Smiley throws ten
comps in front of you, it would be to the
sellers advantage to take his pick.

Re: What good is an agent??? - Posted by Houserookie

Posted by Houserookie on February 07, 2001 at 22:45:02:

Why would this be a problem? I thought the
seller agent gets ZERO commission.

You’ve already paid your 200 bucks to the
listing agent.

It’s the buyer agent that gets his 3%.

Re: What good is an agent??? - Posted by dewCO

Posted by dewCO on February 08, 2001 at 09:50:38:

From my experience as an agent, the idea that you let the seller set the list price is mainly a CYA. So if they pick a number that doesn’t get the job done, it is not the agent’s fault and agent can more easily say you definitely need a price reduction.

Dn’t understand your question, but I think what you are asking goes to 2 things: 1) the compentency of the agent and 2) whether they are acting as your “agent” in an “agency” (legal term) relationship, as in an actual buyer’s agent or seller’s agent, or whether they are merely acting as a go between. Don’t think that listing exclusively or not has any direct bearing as to whether they are actually your “agent” or not. At least it doesn’t in CO. It’s up to the agent (company,broker) and how they run their business.

Re: Semantics - Posted by Jim V

Posted by Jim V on February 08, 2001 at 10:41:32:

Listing agent lists the property.
Selling agent (buyer agent) sells the property.