All Forum Posts by: Kristen Shook

I looked at my closing disclosure from when I purchased without an agent and it cost me $622.50 in lawyer fees. I'm assuming the seller paid roughly the same amount for his real estate attorney. That's cheaper than the 6% agents would take, even for a property selling for around 60K. 

I purchase property without an agent through direct mail, saves you the 6% always! 

@Kristen Shook If I am reading your question right, it sounds like the seller will not pay for the agent if you bring an agent. If you are not experienced at doing this, it makes sense to bring in an agent. Consider that if you were to purchase this home at 54K and you pay an agent 2% of that, this will be just over 1K. You will hear a lot of people here say only agents want you to hire an agent. Do people buy real estate without agent..ABSOLUTELY. Just make sure you understand the risk-reward. Do not save a few hundred dollars just so that you bring so much risk to your deal. Good agents know what questions to ask  and where to look for resources to make sure you are covered. 

Since the deal is already negotiated, and this is your first purchase an agent may benefit you. You will have to increase the purchase price to compensate for the agent, but you can negotiate with the agent to. Typically, the two agents split 6%, getting 3% each. You can find an agent and offer 2% just to help with paperwork. It'll only cost you about $1k.

Otherwise, everyone is correct in stating you don't NEED an agent.

@Kristen Shook No need for an agent. While she is saying 'as is', I would still insist on a home inspection so that you know what large issues may arise. As stated by others, a lawyer is all you need to purchase property. I have purchased all my properties (primaries and rentals) with no realtor (used the seller' realtor for a double-ended deal or have bought private), but I always use my inspector. 

Forgot to mention that if you being a realtor into the mix, someone (typically seller) is going to have to pay their commission.
Not sure how a realtor is going to bring any value to you on this deal, but an inspector would. 

@Kristen Shook

Having an agent is about having an informed non-emotional sounding board pro in your corner. If all the agents you encounter "just fill out forms", then you may decide that this is not what you want. If the agent is truly your advocate, then that is worth it.

I see lots of situations where Sellers think, "It's so easy, I can do it." And then I see them lose a lot during the negotiations. Same with buyers, like things they should ask for but don't. Remember, every transaction starts rosy, that doesn't mean they end rosy.

Most people I meet don't have that kind of adviser on their team. Either way it becomes a opportunity cost analysis, seek free help over long-term or pay for help in short-term. My decision process when hiring a mechanic, I can fix minor stuff, but fussing with engine and being wrong is not something I want to take on, and if I screw it up I lost more than initial fee plus my time. My last repair took me 6 hours, but took mechanic with all the right tools, 45 minutes. It is also why I no longer change my own oil. It is a question of "how much is my time worth?" Not, "How many pennies am I going to save?"

I am talking about hiring someone you interview, vetted and trusted, not your friend's sister. During my divorce, I did it diy-er. Later, I needed to go back to court, where I hired a lawyer.

@Kristen Shook. If I understand your message, you already have an agent - have you signed their buyers rep agreement ?

@Kristen Shook No, you don't NEED an agent.  There are countless stories here on BP about buyers who went without one and everything worked out just fine.  However, there are also stories where the outcome wasn't as happy.

If you were buying your 10th property and were already comfortable with:

• Knowing the ins and outs of the neighborhood
• Assessing the condition and repair costs
  
• Coming up with accurate comps (much harder than it looks)
• Understanding the necessary disclosures
  
• Negotiating price, contingencies and terms
• Writing the contract

I'd say go for it.

But the problem is not just what you don't know.  It's also what you don't know that you don't know.

You could be getting a great deal.  You could also be over paying by $20,000.  Even a real estate attorney is probably not competent to run comps for you - and whatever you do, please don't rely on Zillow, Realtor, Redfin or any other online site.  They cannot take critical details into consideration - like location (backs up to railroad tracks or a freeway) or interior condition (fully renovated vs untouched since 1975).

Are you planning on doing a home inspection?  Do you have a contingency in place for that?  What if your home inspector finds serious foundation issues?  Failing septic?  Major termite damage?  Knob & tube wiring?  Without a contingency in the contract, you're still obligated to buy or lose your deposit. 

BTW, if you don't have a deposit, you most likely don't have a binding contract.  Something of value has to change hands to bind a contract.

Do you have a fully executed P&S in place before spending $400 on an inspection and $500 on an appraisal? I hope so, because if someone comes in and offers that seller another $10,000 and you're not under contract, *poof* - she'll sell it out from under you.

So yes, as a first time buyer I think you need someone to guide you.  A Realtor, an experienced and trusted advisor, a real estate attorney - just someone who knows how to navigate real estate sales.

On paying for a Realtor, we commonly say that the seller pays commissions.  That's because the commission is clearly spelled out in the listing agreement, in advance of the listing.  It's already agreed to. 

However, with a FSBO, there's no such agreement in place. That means that you can expect to pay the Realtor out of your pocket - but since there's no seller's Realtor, you should expect to pay only 1/2 of the going rate.

It's like going for a 30 day hike across northern Alaska.  Can you do it on your own?  Maybe.  But I bet things will go a lot better with an experienced guide.

Good luck!

I usually find an agent will tell you that you need an agent. And a real estate agent is not free to the buyer. If you get an agent, expect that you may have to pay full price as that 6% has to come from somewhere. That extra $3K will most likely come from your pocket. 

You don't need an agent. Call a title company they will keep you on track with the legals of making the purchase. But make sure you do a property inspection. Even though it's 'as is', you will want to know what the major problems are so you can figure them into your budget. Or not. 

Most of the agents I've engaged I have refused to do business with again because once the cash hits their account, they lose interest even though I ask them for help looking for the next place. Cheapest house I've bought is $182K, so it can't be the commissions are not fat enough. The one agent I truly fell in love with (no shenanigans) I left behind in Texas when I moved to Missouri. When I move back to TX, I will only work with her.