How much representation do you really need? I’d like to hear some comments on this. In my case, I had been a renter in my area for many years, so when I decided to buy, I knew exactly what I wanted. I searched for houses using Redfin, Zillow, Ziprealty, etc. Also, a few local realtors have excellent websites where you can search the MLS according to your criteria. This way you not only find houses, but you can see their complete histories, and knowing the parcel numbers you can check for more info with the county recorder and the property tax assessor.
Once I found what I liked, I contacted the listing agent directly and asked for a showing. They invariably asked me if I already had an agent, and said no. In one instance I liked the house and made an offer, which was turned down. Interestingly, the listing agent volunteered to represent me in searching for other properties. I said “no, thank you”. He didn’t like to hear that, he got upset, and lectured me saying that I need an agent, yada, yada, yada, that it doesn’t cost me anything, etc.
What I found funny about this guy is that he was OK with me making an offer on his house and him getting both sides of the commission. But if it was another listing agent getting that sweet deal, he was opposed to it!
I found his approach creepy, and decided to avoid him. In fact, when we have new hires and they ask me for a referral, I give other agents’ names, and also tell them the story of Mr Creepy so that they avoid him.
I know that it doesn’t cost me out-of-pocket to have an agent representing me, but the 6% (or whatever) commission will come from the purchase price that I pay. If I deal only with the listing agent, don’t I have some leverage at the time of negotiation? The listing agent may think “this buyer is offering 5% below the listing price, but I get to keep both sides of the commission… that’s better for me than getting only one side of the commission at full asking price.”
In any case, that’s what we did at the end. We found another house that we liked and dealt directly with the listing agent. My wife made a low-ball offer, that I thought would be turned down outright, but to my surprise, the sellers countered with a price much below their already reduced asking price. So, we countered again meeting them half way (their counter was very, very close to our first offer), and we bought the house.
Did I do something wrong by not having an agent representing me? Did I miss anything?
