Buyer’s agent, what did they do?

Question

What you guys do call this listing agent on Zillow and they refer you to your buyers agent? I have a real estate lawyer. I really don't need a buyer agent. I don't even know what they really do.

Clay Lyddane · Answer

I guess I should say I was being a little sarcastic. I understand their role, I have purchased 4 properties I my life, three residents and a investment. So not a huge number by any means. I am interviewing investment agents right now, which I think certainly have a role, especially for me being new in the investment class. I just recently was checking out a property myself, and the agent said she wouldn't show it to me unless it was through a buyers agents or herself signed as a buyer agent and that frustrated me...

Clay Lyddane · Answer

Well, Jersey also does not allow you to pump your own gas so it make sense--lol.  Is that still true btw?

Clay Lyddane · Answer

That makes sense as I was using my google talk #. Ironically it was about a cabin that I said looked like a serial killer estate--alas just an elderly hoarder with memory issues, but the actually danger/trust issue did not occur to me. I will take that into consideration in the future.

Christian Maluo · Answer

@Clay Lyddane I've been a Realtor for 20+ years. When I get a sign call/zillow call I ask the same question. "Are you working with a Buyer's Agent?" If yes, they should be getting you in the property. Whomever writes an offer should be touring the home with you. If that agent is female, they may also have a practice of only showing homes to clients they already know, unless for open houses. As a female agent, I think I get one spammy/fake male buyer Zillow or realtor.com message every other week. For them, I run their phone number through Forwarn to see if their name matches the number/it's not a Google number, etc. I also insist upon seeing their pre-approval letter too. And of course they are always cash buyers too. Right. Then send me proof of funds before I show you anything. Then I get fake proof of funds letters too.

So this agent either doesn't want to counsel someone else's client who most likely already has a buyer broker agreement signed, or they don't want to have their time wasted by someone who doesn't really plan to buy a house or they don't want to get murdered today.

Ned Carey · Answer

A buyers agent represents you in the transaction. I don't feel the need for a buyers agent as I have done hundreds of deals. A new investor may want a buyers agent to help guild them through the complexities of a real estate deal. Generally a buyers agent is paid for by the seller although tat is negotiable.

In your case if you lawyer handles real estate transactions and is going to be actively involved a buyers agent could be less important to you.

Heather Bailey · Answer

I know it sounds very catchy to say you don't need a buyers agent and you don't know what they do.

If you really know your market and you're a real estate attorney, then maybe you can work without a buyers agent.    I'm a real estate agent in NJ. Our inventory is scarce. It may take  eight + offers before my buyer is able to land the property they want.  As a buyers agent, I take my buyers to many properties and towns.  I share with them the latest list vs. sale, price in their exact neighborhood. I know the listing agents and I talk to them about what the seller is expecting/hoping for in an offer. I draw up the contracts and negotiate the price, I work with the buyers attorney, I set up inspections, and I go to inspections. I have a lot of construction experience so I can talk about the condition of a house and give buyers guidance on what to budget for-based on the condition of expensive items like the roof, siding systems, etc.. I talk them off the ledge when they are about to make a decision that they might regret thats inconsistent with what they've told me. We do a lot to get buyers into houses, especially in a market like we are in New Jersey, where it is still so heavily weighted towards Sellers.    But the key here is, we do it fast. I can get you in a house on Sunday and an offer to the sellers by Sunday evening. I work with a lot of attorneys and they are wonderful, but they're not going to get your offer drawn up fast enough and into the hands of the seller before offer deadlines.  They're not going to accompany you to the inspection. And in many cases, listing agents will not work with an unrepresented buyer. It risks a more encumbered transaction. And most houses here have multiple offers by established agents.  So, why take a chance on a crazy buyer who is unrepresented.  We also work with the lenders so we can sell our buyers to the seller and explain their qualifications. Having a preapproval alone from some online, Lender is not enough.

We have to be very strategic about offers today. As I said above,   I know it sounds very catchy to say "oh buyers agents don't do anything".   But try working with an agent in a market you want to invest in  and see what you learn from them.  If you choose well, I am sure you will get very valuable insights into the market and they will help you get the house. Even in a buyers market, as an investor, you know the competition is fierce to get viable properties. The right agent may help you compete in that arena.