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August 28, 2010


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I would add, unless you (the buyer) are paying the buyer's agent - the agent gets a % of the sale price and as such works for the seller. Unless you are paying his salary - don't trust him - good advice in any transaction.

Don't forget that REALTORS pay annual membership dues to the NAR. And NAR is among the largest lobbies in DC. NAR has proven highly unethical with their past marketing--very much responsible for the housing bubble with their "buy now or be priced out forever" books by their former chief economist. Realtors are used house salespeople. Plain and simply. Buyer beware!!!

cannot agree more Mark - remember the days when sellers "hooked up" with their buddy appraisers (who realtors allowed you to work with) who would write an appraisal valuing homes MUCH more than it's worth so their buddy owners could cash out / refi? the NAR has some involvement in that as well - conveniently turning the blind eye on it. as a real estate investor over the years, i have used agents and brokers as nothing more than conduits to MLS listings, negotiations, paper work etc. no one is to be trusted when money is involved - it's just business ;)

I do not agree with MDB. Even if you do not pay the buyer agent - they can and will work for you NOT the seller. Yes they get a percentage of the sale. However, if you do not purchase because the price is to high - the buyer agent gets $0, thus they have an incentive to help you lower the price so you will go thru with the sale.

BTW, Great blog entry!

There are good and bad in every business, but the bottom line is everyone really works for themselves. The only person who works for you is you. So never let someone else "do all the work" for you, even as your representative. Make sure you are well informed and paying attention. If you just hand the tiller over to someone and then walk away, you'll end up where they want to go every time.

buyer's agent, seller's agent... neither works for you, neither works for the seller.

Real estate agents work for the SALE, if they think they can get a sale by convincing the seller to drop their price, they'll do that, if they think they can get a sale by convincing the buyer to agree to a higher price, they'll do that.

If you're buying a house... hire a lawyer. He works for you.

MattJ, I'm not sure if I agree with you on the part that real estate agents neither work for you(buyer) or seller but work for the SALE.

1st of all, the buyer's agent or seller's agent have to list the property for sale or help locate a property which cost money & time. Show the property, sometimes it takes months to list or find which takes time & money. Good agents would educate the seller and/or buyer on the entire process of the transaction, knowledge equals to money. After (sometimes) months of work if the agent is lucky, they will write up an offer/contract. Most of the time after months of work, the buyer and/or seller decides not to look anymore or not to renew the listing. All that effort for nothing. And you said the lawyer works for you. LOL You're clueless when it comes to purchasing properties. The lawyer's job is to make sure the contract protects the buyer which is written up by the agents(the agent usually write it in a way to protect the buyer). The lawyer uses a title company to do work(title search on the property) which the buyer pays for. The he contacts the seller's attorney(if there is one) to schedule a closing. And you have to pay your attorney no matter you buy the property or not.

Don't get me wrong, you do want an attorney to represent you during closing. But MattJ, you're just clueless of what the agents and attorneys do when it comes to purchasing real estate.

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