Should I Fire My Realtor to Represent Myself?

Question

I've been searching for a new primary recently. I've been working with a realtor for the last 6 weeks. Without getting too much into details, I feel like this realtor is just waiting for me to call him when I need an offer written and is otherwise adding no value to my search. I'm strongly considering removing him.

The catch here is that I am a licensed real estate agent, but I have never actually used it to represent myself in a sale (I've always just used it for referrals). At this stage of my search, I feel like I'd basically giving a forward pass to another agent to collect a commission in the next few months since I've already done a ton of research and I know I'm going to buy something by summertime. So I'm considering just representing myself. So that opens up the door to just run this thing out to the endzone myself here and save the commission (could probably even use it as a bargaining chip in negotiations).

The issue is that I don't really know that much about the finer details of being a buyers agent (even having bought multiple houses before). I don't want to worry about writing the contract wrong, etc. So is this a bad idea to represent myself if there's a likelihood of an error somewhere? Is there maybe another workaround to this (hiring an agent in some sort of limited capacity? making a deal with the listing agent to do the paperwork?).

Jason D. · Answer

@Jason L. Have you talked to your agent about your concerns? Maybe he assumes that, because you're an agent as well, that you would do the "easy" stuff, and he would take care of the finer points.

It sounds like it could be a good partnership... you do what you're good at, and find the deals, and he does what he's good at, taking care of the paperwork involved.

Andrew Angerer · Answer

It has been said on here before, fire bad help immediately and you will save so much head ache. If their communication skills are lacking then they do not have your best interest in mind and will not work in your favor, but rather for their own income.

However, it is completely fine to have another real estate agent represent you, and if you are confused I would highly recommend it, or be blindsided by something you would have never thought about, and have to pay thousands more than you should have. The cost of good help is always worth it, just go onto facebook, ask your friends who they recommend for a good real estate agent, pick 5 and interview them. Try to find someone who also invests in property, that way they have your best interests in mind.

You do not become rich on your first deal, so do not worry about an extra fee here or there for good representation, think about the long term and try to build up a network of great pro's that have your side. Treat them right and they will have your side and bring you more deals in the future.

All the best,

Andrew

Patricia Steiner · Answer

@Jason L.

I found your post to be respectful...and your concern genuine.  Just remember that if you don't use a realtor, the listing agent gets both sides of the commission.  Do what's best for you. Again, a respectful post with an issue I've seen posted here many times before...

Quincy Lockett · Answer

@Jason L.

I purchased my last property with only an attorney for $400. All that matters is that the paperwork is correct with the title company. You don’t need an agent.

Heather Wilkerson · Answer

@Jason L. - I highly suggest finding an experienced realtor and using them for the transaction. In my experience, some of the most complicated issues can arrive during the due diligence period and while you are in escrow. A good realtor will be worth every penny that you may save doing it by yourself! :)

Jason L. · Answer

Just to be clear with the intent of my post, this is not primarily a financial decision so much as it is an opportunity cost decision. This is not the same thing as if I had been working with an agent from the beginning (I mean I was, but I am leaning towards removing him because of disagreements and breakdowns in communication). The analogy I used earlier was that I'm on the 20 yard line in my search (having basically driven the entire field by myself), but to hire a new agent now would require me to pay them as if they ran the entire field all over again. At this point, I know what I'm looking for and I have the ability to legally make offers. All I really need help with is the closing steps. I'd happily pay for help with that, but at this stage it doesn't pay for me to offer a full commission for it. That money would have far more value to me as a discount off my offers. At the same time, I also don't want to insult other realtors in the area by asking them to jump in for a heavily reduced commission that was commensurate with the level of work left in my search. So it's a catch 22. But in an ideal world, my original realtor and I would have continued working together and he would have received the full commission. It just didn't work out like that.

Off topic, but I didn't work at the REIT as an agent. I worked as a financial analyst, who just so happened to have a license. I work outside the real estate industry now. I have kept my license active with this broker but mostly just to use for a referral on my rental properties. Anyway, that's why I left the commercial real estate industry. Not because I didn't like it.

Wayne Brooks · Answer

You can collect the commission through your brokerage when representing yourself.....but the listing has no obligation to reduce the commission if you simply use the listing agent, and typically would not discount the entire buyer agent fee as they still have communicate/deal with you, in place of your buyer agent.

Joel Owens · Answer

I don't think the listing brokerage would want to discount the commission. They generally just keep the whole thing. The other factor is what price range you are buying in and absorption levels. You might not have all of this leverage you are thinking if the market is hot. Seller might see you as a headache and move to take an offer from another buyer.

They offer classes on contract updates and stuff like that from NAR or local REALTOR association. Why don't you take one of those classes if you want to do it all yourself?

This to me just seems like the (stepping over dollars to save pennies) syndrome I have seen over the decades.

You must not have enjoyed the commercial real estate space working for the REIT. Commercial is something I really love to do and I can't stand residential but to each their own.

You could always look at hiring an attorney to help but there is an expense with that too. Not having certain knowledge also comes with a certain cost. Most experienced brokers and agents work on larger deals so they have to do less closings to make more money which frees up time to enjoy life more. If they worked on smaller deals ( do not know your price point) then they have to do volume and to do volume they can't give a lot of time to each client.

Good luck. Hope you find a solution that works for you. No legal advice given.

Jason L. · Answer

Thanks Patricia. Can confirm that my license is active. I also do own two rentals, so I have seen the FL  contract before (just haven’t written it).

FWIW this post is not me denigrating the value of a (good) agent. It’s more that I’m already on the 20 yard line, but to hire a new realtor today means they’re getting paid to drive the whole field. Considering I don’t technically have to hire one to make an offer (nor did I the first time but I felt there could have been value, if it had been met), there’s a real consideration to the opportunity cost.

Should I Fire My Realtor to Represent Myself?

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