[quote=EconProf]Gotta weigh in on the old argument about using a realtor vs. going it alone.
Have bought & sold many properties, with and without real estate agents. In general, they are worthwhile simply because they insulate the buyer and seller from each other and smooth negotiations. Remember that the buying process is filled with pitfalls for each side and is a zero-sum game, with each side ready to rip the other to shreds. That’s why, ideally, the seller and buyer should never meet. If you are buying, you want the seller’s agent to knock some sense into them if they are delusional or in love with their house. If you are a seller, you want the agent tito market your property effectively to get the highest price and scope out the real buyers from the flakes. In countless other ways, good brokers move the transaction along, anticipate and solve problems, and coordinate all the necessary parties to do their job. These details are often ignored by the uninitiated who concentrate solely on the commission and ignor the time spent on deals that don’t get consumated.
That said, agents and realtors vary widely in knowledge, effort, and ethics and it is your job to select one carefully.[/quote]
But that’s only for certain buyers and sellers. Personally, I’ve bought/sold with and without realtors, and it’s been immeasurably easier to transact a deal without the agents in the middle. I like to tailor deals so that both the buyer and seller get what they want. Unfortunately, with agents, you never know what is motivating the other side, so are powerless to complete the transaction in the best way possible.
Agents are the ones who encourage the adversarial relationship between buyers and sellers. We must always remember that buyers and sellers both want the same thing (to exchange a particular piece of real estate for money).
Personally, I’ve found that agents can be more of a hindrance than help, but there are exceptions. Of course, any time you need to buy or sell from a distance, a GOOD agent is a must. This also applies when you have to sell, but work or other commitments prevent you from showing the house, etc.
IMHO, a buyer’s agent is much less valuable than a listing agent, but ONLY if the listing agent makes himself available for regular showings. One of the more comical things about listing agents is when they think they should receive a 3% commission just for entering the property on the MLS (often with only one bad picture and no description). Some don’t even like to answer questions when you call them because they think your agent should call instead. These people seriously need to go back to their fry cook jobs.
