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The_Cawing_Chemist t1_j6osf4p wrote

Reply to comment by Kindly_Boysenberry_7 in Real Estate 101 - How to Tell a Bad Flip From a Good One by Kindly_Boysenberry_7

I know people who have felt like having a buyers agent was a rip off and not worth the service they received. Clearly you have good knowledge that could help a buyer assess whether or not a house they are looking at is in good condition, and valued properly.

On average, so you find that most of your peers have this level of knowledge? Can you comment on why agents are worth 3% of the sales price?

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Kindly_Boysenberry_7 OP t1_j6oy0op wrote

NO. Most agents are idiots. And then there are agents who may not be idiots, but place their own financial self-interest over the best interest of their clients, which is even worse.

Hopefully this downturn will knock a lot of bad agents out of the business. Every time the real estate market gets crazy hot people get into the business, and every time the going gets tough agents who can't hack it in a tough market leave the business in droves.

In my opinion a good agent earns every bit of their commission. They help you find the right property, negotiate the contract, and get from contract to closing. They will take you through the inspection, negotiate the inspection addendum, ensure the property appraises by communicating with the appraiser and/or listing agent, provide guidance on lenders, inspectors, appraisers, and closing attorneys, explain all parts of the process. The real work isn't finding the property - with Zillow and other sites you can find properties that meet your criteria just as easily as I can - it's getting you under contract and from contract to closing. A good agent will advise you on the market, and broader trends that might impact your home buying tactics. And the buyer pays nothing out of their own pocket for the buyer's agent commission. That 3% comes from the listing commission the seller agreed to pay the listing agent, and that the listing agent agreed to share in a co-broked deal.

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The_Cawing_Chemist t1_j6p8dxl wrote

Really appreciate you chiming in. One final question: how do I (an idiot) make sure that I don’t hire an idiot agent? I’m sure most of them can drop fancy jargon I don’t understand in an attempt to sound knowledgeable and qualified, so how I do make sure I work with one who truly knows their stuff?

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Kindly_Boysenberry_7 OP t1_j6pk0gk wrote

The biggest deal in my opinion is an honest, face-to-face (or Zoom, I guess) conversation. Does the agent answer your questions honestly and directly? Do you feel like they are educating you about the process and the market? How comfortable do you feel with them personally? This is a personal service agreement, so you need to get along. You don't have to become best friends, but you will be spending a lot of time together.

QUESTIONS I'D ASK:

No. 1: Is this how you make your living? Do you sell real estate 100% of the time?

If the answer is "no," move on to the next candidate.

No. 2: How much real estate do you sell annually? Ask for this in units (number of homes/condos/townhomes) and in volume (dollar amount).

No. 3: How much real estate do you sell in the particular area? If you don't sell much in the area, what experience do you have so I can trust your ability. For example, did you grow up in the area, or live in the area?

No. 4: Get 2-3 references and ask them about their experience with the particular agent.

No. 5: Check for any complaints with the Real Estate Board and/or the Richmond Association of Realtors.

No. 6: Ask any other specific questions that you might have, like how the agent communicates (text, email, phone), what they consider a successful transaction, what they see as the biggest issue or obstacle in this market.

I'm sure there is other stuff others like u/gowhatyourself can chime in but that's what I've got off the top of my head.

ETA: Spelling

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NotLurking t1_j6pak7l wrote

My current home is new construction from a decent builder. The realtor helping me sell my old house offered to represent me in the purchase of my new place. I thought he was just trying to make the fee, but he definitely earned it. He found items the builder and I both missed at every walk through. He made sure every option and upgrade I picked were actually installed in the house. I could have done all of this myself, but he saved me quite a bit of time and the builder seemed just a bit more responsive when my realtor was involved.

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