Do I need a realtor?

[The_Cheat]

I'm interested in a home that belongs to a real estate agent (his residence), and he has listed it himself through his agency.

My wife and I have looked at the house twice, being hosted by the owner (who, again, is also the realtor). Up to this point, we have not involved a realtor to represent us.

So I have a few questions:

1. Should we get a realtor to represent us, if we decide to try to buy the house?

2. What are the pros and cons of doing so? Up to this point, I felt like it would be better not to do so, since that realtor would cut into the seller's profit, thus reducing his willingness to lower his price.

3. Since I've already been shown the house by the seller, is it too late to bring in another realtor to represent me?


A family member is an attorney who deals in real estate. I have her as an option for advice, but I don't want to take advantage of her. My reasons for thinking I may need representation by a realtor are the following:

I'm afraid I'm not qualified to decide what is a fair price for the home--especially since I don't have a sales history, CMA, or full MLS report on the home (I'd be interested to find out how to obtain any of that on my own). Also, although I have no reason to mistrust the seller, I'm cautious about the whole transaction (don't want to be taken advantage of with things like closing costs, etc.), since I'm a relatively inexperienced buyer, and he does this for a living.

Thanks in advance for any replies.

[Greg]

I'm afraid I'm not qualified to decide what is a fair price for the home--especially since I don't have a sales history, CMA, or full MLS report on the home (I'd be interested to find out how to obtain any of that on my own). Also, although I have no reason to mistrust the seller, I'm cautious about the whole transaction (don't want to be taken advantage of with things like closing costs, etc.), since I'm a relatively inexperienced buyer, and he does this for a living.

Thanks in advance for any replies.

That is exactly why you need a buyer agent who is independent of the seller's goal, which is to get as much money out of you as possible. Plus, the agent selling their own house is probably not covered by E&O insurance which would leave both of you holding the messy end of the stick should something go wrong.

[IggysListing]

You mentioned about a buyer's agent cutting into the seller's profits.
He may either already have it listed paying a selling side (buyer's agent)
commission or willing to pay an agent that brings a ready, willing and
able buyer to the table.
A good buyer's agent can save you money and headaches.

[Mike Taylor]

If you no idea about the comps etc., a buyer's agent can pay for themselves with proper negotiations. The seller has only his interest at heart...you really should have representation. This is a MAJOR decision, don't go it alone.

[Honeycomb Properties]

Hopefully you are stating to see a trend in the responses here- GET YOUR OWN REPRESENTATION!

You gave good reasons yourself why you should get assistance and I will throw this last tidbit at you.

Hostage negotiators ALWAYS have to get authority to make deals (whether they can actually make the decision themselves or not- they state they have to get approval because it provides a buffer in the negotiations). A 3rd party negotiator can be worth their weight in gold during a Real Estate transaction.

[The_Cheat]

Thanks for the quick replies.

I haven't made an offer on this house yet.

No one has yet commented on whether or not it would be bad form to bring in my own realtor after the seller has already shown me the house twice.

Should I worry about that at all?

[IggysListing]

Have you signed anything with the seller?
The laws vary from state to state, but even if you already had
a buyer's agent, you normally can switch.
I can think of no reason to not at least talk to one. Make sure
you deal with a reputable agency. If you are not sure, call one
of the big name agencies or ask someone that you trust for a referral.

[Hannigan]

"I felt like it would be better not to do so, since that realtor would cut into the seller's profit, thus reducing his willingness to lower his price."

I agree with you. Bringing in another agent can materially impair your negotiating position and aggravate the licensee/seller as well.

Have you asked the seller to supply you with MLS information and a blank or partially filled out contract? It sounds strange, I know, but if you make a specific (preferbaly written or email reqest) for a comprehesive list plus client detail pages of all homes on MLS sold in a defined area within the last 3 months, the seller would be unwise to fudge or leave anything out. Also, I've noticed some 'sold' information is provided by REALTOR.com now. The seller probably isn't in as good a position to lie or manipulate you as you might think.

Title companies can supply you with a list of typical closing cost in your area, and who normally pays for what. If you have an eye for detail the contracts aren't that mystifying.