this post was submitted on 15 Sep 2024
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[–] [email protected] 108 points 2 months ago* (last edited 2 months ago) (10 children)

A good realtor is worth every penny you pay them and in addition buying or selling your home will:

  • Listen to and help you manage your expectations.
  • Make sure you get a knowledgeable and thorough home inspector.
  • Keep you from getting the shit sued out of you for one of numerous mistakes.
  • Make sure you fully understand the giant pile of paperwork you'll be signing.
  • Have O&E insurance so if they fuck up the paperwork, it's on them and not you.
  • Go to bat for you if you're being discrimated against in any way by banks, buyers, sellers or landlords (all of which are rampant).

The problem is that a lot of realtors are good at "shaking hands and taking names" and terrible at everything else or they're just plain unethical. Unfortunately, that's the vast majority of realtors in my experience.

Source: wife is a realtor who tells me all kinds of "you'll never believe the shit [other realtor] tried to pull today" stories.

[–] cloud_herder 19 points 2 months ago (1 children)

I’ve never purchased a home but I imagine it’s hard to find a good realtor AND trust them. There may be tons of great realtors who are worth more than their commissions but the bad ones probably say the same things the great ones do AND have basically the same headshot.

I feel like I wouldn’t know if I had a good realtor until after the transaction, if at all, or until I’m fucked.

The only time I’ve used a realtor was to rent a house and I am pretty sure she worked with the listing agent to get me to agree to pay $100/mo more because there were other people wanting to sign for the house. Which, I feel dumb for but didn’t realize until later. But I’ll also never know if that was the case.

[–] [email protected] 13 points 2 months ago

You're absolutely right. You, the client, don't get to see what goes on the backend so it's often impossible to know up front who is going to represent your interests and who is going to be more interested in padding their own commission. Zillow reviews are basically useless because all it means is that the reviewer liked their realtor. That's great and all but "likeability" and quality of work are not the same thing.

There was a lot of media speculation that the recent court case and settlement with the National Association of Realtors would bring commissions down and make terms more favorable, especially for sellers.

I don't believe that has happened at all. In fact, it's just helped make an industry known for its opaqueness and underhanded tactics even more opaque and underhanded. As usual, it's the client who gets the shaft.

If you want to find a good realtor, or avoid a bad one, there are a few things you can do.

  • Beware of realtors that aggressively push you toward certain vendors (banks, title companies, etc). If you're looking at your third house and they're now asking you for the fifth time if you've applied for a mortgage at a specific bank, that's a red flag. Kickbacks are illegal in both banking and real estate. But some people like to treat those pesky laws like suggestions.

  • Beware of dual agency in general, but especially Realtors that are very persistent about it. With dual agency, the same realtor represents the buyer and the seller. It's not a guarantee that your realtor is going to do something unethical, but let's be real. Collecting commission from both sides in a real estate transaction is a very clear conflict of interest. But it's a conflict of interest that is considered acceptable as long as The buyer and seller both approve. You do not have to approve. But you may have to find another realtor depending on who your initial realtor was representing first.

  • If a realtor has been in the business for a long time AND is willing to show you rentals, that's actually a positive sign. Rentals pay shit. Around here if you get $300 - $400, that's a good rental commission. As the agent you get to keep maybe half of that. Depends on what the split is with your broker. Agents who sell more can negotiate a better commission split. So the rental commission is dog shit and on top of that, landlords and property Management companies are notorious for trying to either weasel out paying the commission or they will drag their feet on it as long as possible.

As the agent, you could easily spend many many hours showing rentals and lose money doing it because rentals are not profitable for agents. Agents that are relatively new to the business will do rentals just to help build up their client portfolio. But if you get an agent who's been in the business for a while, doesn't try to pawn you off on another agent, and will take the time to actually show you rentals, they're not doing it strictly for the money even if they do hope that you'll remember them if If you ever need to buy a house.

  • Call a few local title companies and see if you can get them to tell you what they think of the realtor that you're considering working with. Title agents spend all day working with real estate agents and they're the ones who know which agents are on their game and which ones are a shitshow. If you can get them to divulge anything, you may learn something valuable.
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