Should I use a Realtor in this situation?

cevamal · 05-29-2007, 04:47 AM

We're moving in a month and are planning to list our current house (with a Realtor) as soon as we move out. Slightly scary, in this day and age, but we considered all our options and decided it was the way to go. We have not hired a Realtor yet.

A friend of mine knows we're 'in the process' and has a relative who is looking for a house and needs to move ASAP as they've already sold theirs. Their closing is after our scheduled closing, so this has the potential to be a big win-win.

Coincidentally their buyer's agent is an acquaintance of mine. She called me last night to say they'd driven by our house the day before yesterday and are interested, and to ask for some more info. on the house. She said "If you have not listed with another agent I might be able to work out a good deal for representing your side as well."

My inclination is to say "thanks, but no thanks". As I see it, the main reason I'd hire an agent is to find me a buyer, and that part's done. I will use a real estate attorney, either the one we used when we bought this house or the one we're using now to purchase the new one.

What are the advantages to using an agent in this situation? Using the buyers' agent (my acquaintance) seems like a conflict of interest, no? If we don't use her to represent us as well, will we be expected to pay her a commission? If so, how much would be reasonable? She has helped the buyers look at other houses but has done literally nothing w/r/t our house. Should we hire our own agent, and if so what would be a reasonable commission for only handling the closing, no advertising, etc.

I would prefer to not hire an agent at all and simply work with our attorney, but am willing to consider alternatives. I have never sold a house before.

If these particular buyers don't work out we will return to plan A and list the house, with a Realtor, after we move out.

JennSellsFast · 06-04-2007, 07:39 PM

There are two ways to go about this. 1. Pay your friend's buyer agent a commission. Or 2. Refuse and make them pay it. If you are uncomfortable working the deal by yourself, Hire an agent to protect your own interests. Never allow Dual Agency, becuase the only person who benefits from that is the agent. Good luck.

judyo · 06-05-2007, 07:47 AM

If you have an "automatic" buyer an attorney might be all you need to get it to closing but you'll need a good real estate attorney that might go a little further for you & you might pay a little more. I don't see why you'd need to hire this buyer's agent to be, like Mike said, a dual agent. And I truthfully don't think you need to list with a broker for this particular buyer just for your own representation. If this deal doesn't work out then use an agent to market your home as you had planned.

avonreal · 07-05-2007, 12:19 PM

no suprise they'd try to persuade you into that, it means more business for them, but as others have suggested, you don't need a realtor.. an attorney will do.

Homesurfer · 07-05-2007, 12:45 PM

Listen to JudyO.

Morristown · 07-11-2007, 08:13 AM

I have a feeling that when they try to work this out without paying the agent some sort of commission, this deal will quickly fall apart. Not trying to be negative, but the likelihood is that the agent is depending on this client for a good share of this month and possibly next months income.

jasoncrouch · 07-21-2007, 08:29 PM

I agree with James on this. In our part of the world, real estate attorneys are rarely used, however. In almost eleven years, I have only had a handful of clients use an attorney (on top of our representation), and usually they have only delayed things and haven't added much value.

When I have been the "acquaintance agent" in the past, I haven't usually sought to gain extra commission in most cases, just the normal buyer's agent percentage (which is 3% in our case). This agent is probably a decent person and not out to harm you, but they are not your representative.

If you list later with a Realtor, you will likely pay more in fees. I would recommend agreeing to cover the buyer's agent commission, but not any extra in this case, and I don't think you will pay more to have an attorney simply assist with looking at paperwork. You mentioned that they haven't done anything with respect to your home, but they are bringing a willing and able motivated buyer to the table, and they will have to work pretty hard to make sure it closes. More than likely, you stand to save some money here if you handle it correctly.

escapeso · 08-01-2007, 11:56 PM

Yeah I agree. I think at the least I would pay the buyers agent the commission for their side. You will get a smoother transaction.

Sam Dodd · 08-02-2007, 06:06 AM

In some states you have to use a RE attorney no matter what. Considering they used one to buy I am betting they live in that sort of state. Also like Jason said you should at least pay the buyers agent side of the commision but I wouldn't pay both sides.

charlie4 · 10:08 PM

i am located in WI and here we can write a one time listing contract that pertains to only the one buyer. It is negotiated what will be paid by the seller to the agent to bring this buyer to the hosue show it to them, and also write the contracts. the agent is working as a dual agent at this time. Dual agency is not the end of the world. The agent has the same duties to both parties. They can not though help either party in the noegotiating process. They are there to write the contracts and bring the whole process to closing. In this case there is usually a reduced commission to the seller or sometimes a flat fee is negotiated. Just remember in this slow market a buyer is a buyer and be sure to consider this as stated above " that agent is bring you a ready willing and able buyer". Here is WI the market is slow enough that if you dont take a buyer when you have one ready willing and able, you may not get another for months maybe even more than a year. There are houses currently on the market here (DOM) for 400-600+ day. These sellers need and want to sell, although there are just not that many buyers out there. I would pay the commission that you negotiate with the agent, also as stated above "so the buyer doesnt disappear. Although if you are more comfortable hiring a Lawyer to represent you (you may still pay the buyers side of the commission now you are adding the lawyer fees on top of that). The lawyer will help you with the closing process although who is going to write the contract for you? If not a agent or lawyer how do you know it is being wrote correctly.

Just all things to keep in mind when thinking about representing yourself in the transaction (hiring a lawyer to do the closing). I am not trying to steer anyone one way or the other. What ever works for you is what you should do.

Another option would be to find a agent that will charge you a smaller fee or a flat fee to represent you through the contract. I am not sure where you are located or if for sure agents can do this where you are at. As a agent in WI we are not able to give legal advice, that you do need a lawyer for, although to write a contract and help negotiate a contract is maybe a possibilty for you.

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