Thread: Possible to represent myself as a buyer?

You can read all the real estate license books, take all the real estate license courses and listen to all the posts on this forum but none of it will teach you anything about negotiations.

You don't need a real estate license to buy a house without an agent representing you. But you should really learn how to negotiate. A skilled listing agent will rake you over the coals and any commission you save will be lost when you overpay for the property and agree to unnecessary terms.

It is all about negotiations. Master this and you will save money buying a house.

Originally Posted by kaizen

Hi all, I just found this forum and am hoping that someone may be able to answer a question for me.

I am new to real estate and am thinking about purchasing my first home. I've done quite a bit of home work on my local market and have an extensive finance background (I have found that a lot of finance concepts overlap with real estate concepts) and generally feel comfortable with real estate concepts.

My question is this: If I pass the real estate licensing exam, can I self-represent as a home buyer? In other words, can I spend a few weekends studying and a few hundred bucks and save myself thousands of dollars in agent / broker commissions when I buy a home? Are there laws / restrictions against this? Is there anything that is really difficult to learn? It seems pretty straight forward.

I am confident I can learn everything that I need to know in a fairly short amount of time and would prefer to save myself some money. I hope this question doesn't offend any real estate professionals here.

Thanks!

Penny wise, pound foolish!

I've been actively working in my market for 32 years and I list my own property (and pay the commission) with someone outside my own company.

People who are active and experienced know how to get what you want done, in the time you want it done, without any more hassle than is necessary.

Find someone who knows what they are doing (or 3 or 4 of them) talk to them, and hire one. You will profit in the long run.

hello kaijal but i cant help you sorry

Thanks for the input on negotiations. I'll pick up some books on Amazon and read through the process to get more familiar with the particular areas that will be contested (that will take even less time than getting a license). I won't have any problems as long as I have a good sense of what I am talking about.

I don't want to insult anyone here, but I've tried 3-4 agents already, and I can't figure out how they can justify the commission they receive. Granted, I haven't actually closed the deal on anything yet, so maybe that's where the value is. But from what I have seen, they keep pushing medicore properties, apparently expecting that I can't do my own research -- it seems like they all just want to close something and get their commission. I've found much better deals myself in the last three days of looking (and I'm new to this part of the country -- sad) and have been pursuing them, looking up the comps, etc. This stuff isn't rocket science.

Originally Posted by kaizen

Thanks for the input on negotiations. I'll pick up some books on Amazon and read through the process to get more familiar with the particular areas that will be contested (that will take even less time than getting a license). I won't have any problems as long as I have a good sense of what I am talking about.

I don't want to insult anyone here, but I've tried 3-4 agents already, and I can't figure out how they can justify the commission they receive. Granted, I haven't actually closed the deal on anything yet, so maybe that's where the value is. But from what I have seen, they keep pushing medicore properties, apparently expecting that I can't do my own research -- it seems like they all just want to close something and get their commission. I've found much better deals myself in the last three days of looking (and I'm new to this part of the country -- sad) and have been pursuing them, looking up the comps, etc. This stuff isn't rocket science.

And I don't want to offend you, but either you don't work at all so that you have enough time to accomplish what needs to be accomplished, or you make very little money so that you can take time off and not have to worry about the consequences, or you have not bothered to read many of the posts in this area.

Penny wise, pound foolish

Hello Kaizen-

I've got some good news for you - you can represent yourself and do not have to be represented in a real estate transaction if you are buying or selling your own properties.

You only need to be licensed if you are representing others for a fee. There are some state to state variations in these laws - but on these two points thing should be similar.

So if you feel that confident - go for it !!

I will advise you it would be wise to find a real estate attorney that you can work with - and maybe consult with prior to signing any contracts.

Good Luck !! - You'll Need It

Glenn

I would also caution you to be careful in what criteria and/or resources you are using for comps. Sites like Trulia, Zillow, etc. can be good resources in searching for homes but I would not trust their comps. Also, there may be defects or things you may not being seeing. A good exterior photo can be decieving as to what the interior may contain. Good luck.

Good luck. Having a good second opinion and someone to help do the research with you is worth paying the commission sometimes.

Kaizen,
You as the buyer don't pay the commission - the seller does. So if you self-represent you'll never know if you're saving any money, because the seller still pays the seller-side commission.

And if you're self-representing, negotiating with an agent who presumably makes a living selling real estate, chances are you aren't saving any money anyway.

Get a license? Well then you won't save money, but you'll get a commission - which will probably be about 50% of the gross commission, since your broker (you have to work for a broker) will take half.

You should be considering other things than the price of the house. A good agent will negotiate seller participation in closing costs - which could save you several grand.

Find a good agent, tell him what houses you want to see, do your own research on what the home's worth.....