I've been searching and searching for a home for the past few weeks and I finally found one that looked pretty good from the outside. I called and made an appointment to view the property with the selling agent who walked me around, told me a bit about the neighborhood and gave me her business card at the end.
My question is-am I now committed to NOT using a realtor since I made this visit on my own? The selling agent never asked if I was working with anyone and I didn't bring it up myself although my intention has always been to contact Redfin as soon as I found the property I was interested in.
I am a first time homebuyer and am really hoping I didn't just make a bad move.
If an agent has already helped you find a property, Redfin highly recommends you make an offer through that agent. It is simply good karma.
Redfin always encourages buyers to be upfront about their plans to work with Redifn during the contract writing phase.
If you believe your agent is not delivering the value you expect, you can end your relationship with that agent and submit an offer through Redfin Direct. Since you did not sign a buyer agency agreement you are not officially in contract with this agent.
Still, good karma is nothing to laugh at.
Janelle Saylor | Redfin Open Book Manager - Listings Redfin Open Book
i think you're fine. did you agree to work with an agent or sign a contract, if not....it's looks like you're doing the leg work yourself...so dump them and do it on your own.
There is something called "Procuring Cause." You can google it. It gets VERY complicated, but it has to do with who first showed you the property, or how you first heard about the property. (as in don't sign those sign in sheets at Open Houses)
Sure, a listing agent can show you the property, and then you can run off and get your own buyer agent... all will seem smooth... and then after closing the listing agent sues the buyer agent for "procuring cause." And they oftentimes win.
But regardless of procuring cause, another reason to not do it is representation. That listing agent does 100% everything in the best interest of the seller. They do NOT work for you. They won't tell you "well my last 5 deals I dropped $22,000 off list, so offer XYZ." But a buyer agent CAN tell you what the listing agent's track record has been.
And, if you select something called "dual agency", which is ILLEGAL in some states, then the Realtor is supposed to work for NEITHER party and just becomes a paper pusher (ie no advice on pricing, home inspection etc). What benefit do you get there?
Recently I was the listing agent for a place. The buyer agent couldn't make it, so I reluctantly showed the listings (my mom's house actually).
The buyer ended up putting in an offer and bought it. But during the under contract phase they suddenly wanted all my stager's props. She went on to say "but Frank said that it came with the house." When in fact my exact words were "everything is negotiable." But since their offer was X with no mention of the bathroom props, that is the deal. If she wanted the stuff, she should have offered more and asked for the stuff in the contract.
While that might seem minor, it is just better to have a church and state separation. You know who works for whom.
I've been searching for a home in Montgomery County for three years--I know exactly what I want and do not have to move by a particular date. I used to feel strongly against dual agency or contacting the selling agent to see/buy a house. Now I'm convinced it might be the only way to be included in communication with the seller and seller's agent to successfully get a home I want. I'm financially more capable than virtually all buyers searching in my price range (I live well below my means), but for some reason, three homes have slipped away from me due to agent error.
My first realtor skipped out of the country without notice, when the house I was waiting for came on the market and sold the first weekend (before I was using online listings). My second agent became tired of working with a long-term buyer who had no timeline, and he couldn't show me the house I wanted before someone else got it (the first open house was canceled). I must have a knack for picking the ones that will sell fast.
Then two months ago I found a home I wanted to buy--the first one I had liked in over a year. Through my new realtor (one month buyer agreement - expired July 1), I placed a contract on the home. The sellers were away, so everything had to be faxed. Two weeks later I received the sellers' counter offer. I responded to their counter with another counter, unaware that another buyer was also negotiating on the property. Even though my realtor thought my counter offer was solid and above comps, it was not really high enough based on hundreds of thousands in upgrades in this home and a premium lot. I was blindsided, and the home went to another bidder. I never knew anything about another bidder. Then after the fact, I found out the sellers wanted to settle earlier than I had indicated (no place on the contract to indicate "anytime" for settlement date). I had told my realtor to tell their realtor I was flexible with closing. Did they ever get that message? I feel partly responsible for my low-ball counter on this deal, but my realtor should've known better. I'm also convinced I would've gotten the home had I worked with the seller's agent and had more open and insider communication--no telephone tag or misinformation.
So I'm still searching for a home, trying to decide if I want to work with Redfin. My latest pre-approval has once again expired, and I cannot believe I will be forced to get another one before I tour a home. Why can't someone look at my above 800 credit rating and pre-approval letter from last month, and take them at face value? What could possibly happen to my standing so quickly? I found out my credit union with unbeatable mortgage rates is now charging $150 for preapproval. I guess I can get preapproved somewhere else, but why keep dinging my credit rating? And my current home is paid off! I have no debt! I'm thinking the easiest route for me to go is open houses, and then contacting a seller's agent to see a house, and telling them I don't want to work with them if I don't like the house. Any suggestions?
ontheprowl - I thought I had written your post while asleep. I know exactly how you feel. I'm in almost the identical position.
Question - have you thought about getting your own salesperson license? In VA, it's not hard, though the folks at Redfin did present some interesting challenges when I spoke to them at the last open house. However, I suspect folks like you and me might be better served with this approach.
As to your dual agency approach, if you're resolute, understand the market and comps, and have a secure financial footing, I don't see why not. The big question is how much of a discount you should and can get from the agent AND whether or not that discount will have any adverse impact on the process, especially if multiple bidders are present (not as likely in today's environment).
Good luck and I hope to hear more from you.
PS. I wrote a post somewhere here a few months (a year??) ago along the same lines where we went quasi-dual agency on a corporate relo. It was a very poor experience. We've lost at least two houses over the last three years; however, I'm actually thrilled at the outcome. In both situations, the market clearing price no longer prevails, i.e., overpaid!
Venturion, Good to know someone else understands my frustration and unique dilemma. Usually the reaction to my long-term, grueling search is that it "must be nice" to be in my financial situation. Not really, I'm just responsible and live WELL below my means like everyone should--no sympathy here for foreclosure participants. People need to have a plan in case they lose their jobs, have medical hardship, etc. People tend to bite off more than they can chew and take risks that are ridiculous. I'm also single and must go it alone. Not that I never plan to get all the frills someday that everybody else seems to have, like cable or satellite TV, high-speed internet, etc.
I have put in several hundred hours of work on trying to find a home. You're right, I've become somewhat of an expert. I never considered getting a license and don't know how time-consuming that would be in MD. I should look into that. When I finally do sell my current home, I should probably do it myself.
At this point, regarding the dual agency approach, if I find a home I actually WANT (happens so rarely), I won't feel as inclined to bargain so much if the home is within $25k of comps. Obviously I would like to get a good deal, as that's how I've lived my life and managed to save so much money. With my being so frugal, you must know that bargains, retail sales, coupons, the whole bit, are important to me. But I'm tired of playing the game and wasting so much time with this process. I'm sure the folks who got the house I wanted were not able to swing the 40% downpayment like I was, but obviously that didn't help my bargaining position as I thought it would. When I put the contract on the home, I said the only person who would beat me out would be a foreign investor. The buyers who landed the contract are from somewhere in Europe.
How much earnest money are you including with the contract? With the relo, a buyer (international as well - what a coincidence!) included $140,000 EMD. I'm not saying its wise, but it seemed to be an effective strategy; at least it was paired with my poor agent representation. I bring EMD up not because its a silver bullet, but b/c you and I are in the position of finding competitive advantages on the fringe.
Another option I've thought about: putting an ad in the paper. I know this sounds crazy, but have you ever thought of a wanted ad that reads like this:
Cash buyer looking for long-term home for family of three. Already reside in community for last 10 years. Willing to offer quick closing and pay up to $350/square foot for 3BR properties in 22314 OT & DR below $700K. NO AGENTS. All legitimate inquiries will elicit a response: venturion1@gmail.com.
PS. For Virginia, you have to take a 60-hour class, which you can do online, and then take a couple hour test, which only requires 1-day notice for sign-up and is offered in numerous locations. After that, there are NAR, MLS and brokerage issues with which to deal. The classes and test are not perceived as being difficult. The ongoing fees and requirements may be a little more onerous.
ontheprowl wrote: But I'm tired of playing the game and wasting so much time with this process.
I know the games suck, but you have two choices...
1) High Price and a Fast painless deal or 2) Low Price and slow play it.
Can't have it both ways in my opinion. High and Fast or Slow and Low.
And have that Dual Agent buyer agent show you the last 3 homes that the seller has sold in the last 10 years to find a pattern... oh wait, that is right, they can't help you OR the client that hired them. They just have to shuffle paper like Dunder Mifflin (anybody get that reference? If not Google it)
