Do you need an agent to make an offer for a house?
#16
Re: Do you need an agent to make an offer for a house?
We did the same as Zoe... Our lawyer drafted our offer for us with the stipulations we needed e.g. Finance, WETT certificate etc..
#17
Joined: Sep 2008
Posts: 12,830
Re: Do you need an agent to make an offer for a house?
It depend how confident one is at negotiating price, many are not or not that good at it.
#18
Re: Do you need an agent to make an offer for a house?
I think your point above that an agent acting for buyer and seller is in a conflict is fair but someone acting as a buyer's agent is also in a conflict. The buyer's agent needs the deal to go through. I doubt that this would be problematic over price; a few grand on the sale price doesn't come to much in commission, but it can be over problems with the property. You need an independent party to tell you if you're buying a grow-op or toxic waste dump; it's not in the interest of the buyer's agent to do so.
(In pre-emption of the likely responses, I accept that it's possible that an agent may hope to see the same customer again and/or to represent friends of the customer. It may be, especially in small towns, that an agent will take a long term view.)
Last edited by dbd33; May 19th 2015 at 2:12 pm.
#19
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Joined: May 2012
Location: Qc, Canada
Posts: 3,787
Re: Do you need an agent to make an offer for a house?
Lawyers who specialises in "agent less" deals can help with this; you can find them from Property Guys or competitors.
I think your point above that an agent acting for buyer and seller is in a conflict is fair but someone acting as a buyer's agent is also in a conflict. The buyer's agent needs the deal to go through. I doubt that this would be problematic over price; a few grand on the sale price doesn't come to much in commission, but it can be over problems with the property. You need an independent party to tell you if you're buying a grow-op or toxic waste dump; it's not in the interest of the buyer's agent to do so.
(In pre-emption of the likely responses, I accept that it's possible that an agent may hope to see the same customer again and/or to represent friends of the customer. It may be, especially in small towns, that an agent will take a long term view.)
I think your point above that an agent acting for buyer and seller is in a conflict is fair but someone acting as a buyer's agent is also in a conflict. The buyer's agent needs the deal to go through. I doubt that this would be problematic over price; a few grand on the sale price doesn't come to much in commission, but it can be over problems with the property. You need an independent party to tell you if you're buying a grow-op or toxic waste dump; it's not in the interest of the buyer's agent to do so.
(In pre-emption of the likely responses, I accept that it's possible that an agent may hope to see the same customer again and/or to represent friends of the customer. It may be, especially in small towns, that an agent will take a long term view.)
#20
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Joined: Aug 2013
Location: Maple Ridge, Super Natural British Columbia
Posts: 2,071
Re: Do you need an agent to make an offer for a house?
Use a Realtor who lives in the area you are buying in and knows the area well!
After spending about 6 weekends open house viewing (and may hours, days, weeks and months trawling MLS) we came across a Realtor when we were viewing an open house in Maple Ridge.
He is a real character and has been a Realtor in Maple Ridge for about 35 years and has always lived there too (getting on a bit now obviously!) and we arranged through him to view some properties that he had found and some that we had found.
He knows all of the areas well and has lived through the growth of the town.
Previous customers were even stopping to say hi to him in the street when we were viewing properties! That happened three times in different part of town!
Some of the properties we had shortlisted he took us to, but even told us that we wouldn't like them beforehand and he was right. He knew who had built almost every house we viewed and told us what he though of some of the builders!
He knew the ins-and-outs of various areas, confirming what our thoughts were, which was good.
We ended up buying a 6-year old house that we had picked ourselves, but our Realtor was very efficient with the offer process and suggested we low-ball to see how desperate the seller was (this was a December listing, which usually means there is an unplanned reason for selling!).
We got the seller down a bit as a result (he had just dropped the price two days before and we didn't realise until we looked that morning) and got a good deal in the end - if there is such a thing in BC!!
Houses in that part of town are now selling in a matter of days at the moment - the market has gone mad!!
I would say that using a Buyer's Realtor for your first purchase or in a new area is probably a good idea, although I would probably not bother next time now that I know how it works over here.
We are half moved in - we completed last week and moved a load of stuff in at the weekend.
After spending about 6 weekends open house viewing (and may hours, days, weeks and months trawling MLS) we came across a Realtor when we were viewing an open house in Maple Ridge.
He is a real character and has been a Realtor in Maple Ridge for about 35 years and has always lived there too (getting on a bit now obviously!) and we arranged through him to view some properties that he had found and some that we had found.
He knows all of the areas well and has lived through the growth of the town.
Previous customers were even stopping to say hi to him in the street when we were viewing properties! That happened three times in different part of town!
Some of the properties we had shortlisted he took us to, but even told us that we wouldn't like them beforehand and he was right. He knew who had built almost every house we viewed and told us what he though of some of the builders!
He knew the ins-and-outs of various areas, confirming what our thoughts were, which was good.
We ended up buying a 6-year old house that we had picked ourselves, but our Realtor was very efficient with the offer process and suggested we low-ball to see how desperate the seller was (this was a December listing, which usually means there is an unplanned reason for selling!).
We got the seller down a bit as a result (he had just dropped the price two days before and we didn't realise until we looked that morning) and got a good deal in the end - if there is such a thing in BC!!
Houses in that part of town are now selling in a matter of days at the moment - the market has gone mad!!
I would say that using a Buyer's Realtor for your first purchase or in a new area is probably a good idea, although I would probably not bother next time now that I know how it works over here.
We are half moved in - we completed last week and moved a load of stuff in at the weekend.
Last edited by withabix; May 19th 2015 at 3:29 pm.
#21
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Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Re: Do you need an agent to make an offer for a house?
I agree. Local knowledge is so important.
#22
Re: Do you need an agent to make an offer for a house?
Maybe rent for a little while before you decide to buy if its possible depends on personal circumstances of course.
Renting may allow more time to get to know different areas and maybe price ranges of properties that interest you.
All the best what ever you choose
Renting may allow more time to get to know different areas and maybe price ranges of properties that interest you.
All the best what ever you choose
#23
Re: Do you need an agent to make an offer for a house?
Thank you, again, all
It has been hard for me to find a good realtor (I find that even the buying ones have been pushing me to buy at all costs and compete) - I do have one for one locale but I am just sticking with him out of loyalty, but I see now that this is foolish
withabix - so great that you found your place! Best wishes on the move.
Happy living everyone!
It has been hard for me to find a good realtor (I find that even the buying ones have been pushing me to buy at all costs and compete) - I do have one for one locale but I am just sticking with him out of loyalty, but I see now that this is foolish
withabix - so great that you found your place! Best wishes on the move.
Happy living everyone!
#24
Re: Do you need an agent to make an offer for a house?
Thank you, again, all
It has been hard for me to find a good realtor (I find that even the buying ones have been pushing me to buy at all costs and compete) - I do have one for one locale but I am just sticking with him out of loyalty, but I see now that this is foolish
withabix - so great that you found your place! Best wishes on the move.
Happy living everyone!
It has been hard for me to find a good realtor (I find that even the buying ones have been pushing me to buy at all costs and compete) - I do have one for one locale but I am just sticking with him out of loyalty, but I see now that this is foolish
withabix - so great that you found your place! Best wishes on the move.
Happy living everyone!
Since you don't know where to live, and the areas you have mentioned are very Marmite (either like them or hate them), you'd do yourself a favor if you rent for a year or so in those areas to try before you buy. If you realise you don't like it, it could be very expensive financially and emotionally. Especially if the market begins to turn like it is in many areas of Canada.
Last edited by el_richo; May 20th 2015 at 3:49 pm.
#25
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Joined: Feb 2013
Location: BC, Canada
Posts: 3,873
Re: Do you need an agent to make an offer for a house?
A Realtor is a sales person who relies on commission to pay their bills. All Realtors need you to buy, some will be more obvious in their pushing than others. The regulations are pretty scant and they can spin anything so be very aware, especially in today's market.
Since you don't know where to live, and the areas you have mentioned are very Marmite (either like them or hate them), you'd do yourself a favor if you rent for a year or so in those areas to try before you buy. If you realise you don't like it, it could be very expensive financially and emotionally. Especially if the market begins to turn like it is in many areas of Canada.
Since you don't know where to live, and the areas you have mentioned are very Marmite (either like them or hate them), you'd do yourself a favor if you rent for a year or so in those areas to try before you buy. If you realise you don't like it, it could be very expensive financially and emotionally. Especially if the market begins to turn like it is in many areas of Canada.
very good advice
#26
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Joined: Apr 2015
Location: GTA
Posts: 68
Re: Do you need an agent to make an offer for a house?
We started by getting a buyers agent, then another, then another. We found they offered no real advantage. Most buyers and sellers agents are all re-max so there is a conflict of interest there straight away. We just never got any real service. When we asked any of the agents what would be a reasonable offer to make they always suggested making the offer above asking price to get it accepted. Didn't seem to have any negotiating ability so we hired and fired.
We made friends in the local coffee shop and any house we were interested in they gave us local knowledge - the buyers agents should of done this but none of them did. Buyers agents would not tell us anything that could affect them getting 2.5% commission. The customers had told us of issues with build quality on one development - the realtors never did even when we asked the specific question.
Our friend is a banker (mortgages) and advised us on any offer to make it conditional on a mortgage and home inspection that satisfies us so could always pull out. We dumped the buyers agents and with Starbucks input eventually put an offer on a house 10% less than asking - including subtracting the 2.5% buyers agent fee.
The main selling point of the buyers agent was they would drive us around, provide local knowledge, negotiate, know of houses before they came on the market etc - didn't see any of that from a buyers agent.
Not for everybody but we found the buyers agent was just a helper for the selling agent - ultimately they were all re/max. We've been in our house for over a year now and got it much cheaper than others on the same street.
#27
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Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Re: Do you need an agent to make an offer for a house?
We started by getting a buyers agent, then another, then another. We found they offered no real advantage. Most buyers and sellers agents are all re-max so there is a conflict of interest there straight away.
...
Not for everybody but we found the buyers agent was just a helper for the selling agent - ultimately they were all re/max. We've been in our house for over a year now and got it much cheaper than others on the same street.
...
Not for everybody but we found the buyers agent was just a helper for the selling agent - ultimately they were all re/max. We've been in our house for over a year now and got it much cheaper than others on the same street.
You could just as easily accuse two bidders in an auction of being in a conflict of interest because they are making bids to the same auctioneer.
Last edited by JonboyE; May 21st 2015 at 10:32 pm.
#28
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Joined: Apr 2015
Location: GTA
Posts: 68
Re: Do you need an agent to make an offer for a house?
Just for your information, and because it is nice to deal with facts every now and again, Re/Max is a brokerage. Real estate agents are independent business people. Just because they happen to use the same brokerage says nothing about a conflict of interest. If they were working out of the same office then maybe, but just because they are both affiliated to Re/Max means nothing.
You could just as easily accuse two bidders in an auction of being in a conflict of interest because they are making bids to the same auctioneer.
You could just as easily accuse two bidders in an auction of being in a conflict of interest because they are making bids to the same auctioneer.
Fact is we did better without any real estate agents. The agents did not give a service other than always recommend bidding higher than asking. We did far better on our own
#29
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Location: White Rock BC
Posts: 11,682
Re: Do you need an agent to make an offer for a house?
Good for you.
#30
Forum Regular
Joined: Apr 2015
Location: GTA
Posts: 68
Re: Do you need an agent to make an offer for a house?
Just for your information, and because it is nice to deal with facts every now and again, Re/Max is a brokerage. Real estate agents are independent business people. Just because they happen to use the same brokerage says nothing about a conflict of interest. If they were working out of the same office then maybe, but just because they are both affiliated to Re/Max means nothing.
You could just as easily accuse two bidders in an auction of being in a conflict of interest because they are making bids to the same auctioneer.
You could just as easily accuse two bidders in an auction of being in a conflict of interest because they are making bids to the same auctioneer.
The auctioneer only represents the seller. The buyer represents themselves at auction. An auction is a very transparent process. I do know for a fact that Re/max trains its agents to keep the buyers in a separate room from the negotiations and this muddied the waters for us?