Post # 1
Hey all- we are looking at buying a place for the first time. Just curious if getting a realtor is worth it/ how they get paid/ if it is out of my pocket. I’m confused by it all. For what it’s worth I live in British Columbia, Canada
Post # 2
Unless you are building a house, get a realtor. If you’re building a house, they aren’t required and really do nothing haha.
They get paid from the seller, a % of the house price I believe. Not out of pocket, and def worth it for buying a built home.
eta – I think realtors here get 3.5%. Also, as a 1st time buyer you’ll have different perks/limitations that a realtor might be helpful with – ie the rebate, and the new mortgage laws that just went into effect (or was that just ab?)
Post # 3
waitingtobeemrs14 : Having a realtor really helped me when buying my first home. He helped me find houses in my price range that had the things I wanted in a home when they first came on the market. He also helped me out with the closing process, and led me into the right direction when it came to finding the best bank to get my mortgage through, finding a good inspector, etc. He also helped me be a little more agressive with counter offers, as he knew the market a lot better than I do.
I’m pretty sure most realtors are paid in commission, which more so cuts into the sellers profit.
Post # 4
My first home I used a realtor. And she really went to bat for me! She pushed hard and worked deals- I was always happy with the end result. When my Darling Husband and I bought a home together- we enlisted her again. She did the exact same thing- got us an amazing price on a home and a good price when I sold my first home.
I’ve heard horror stories from friends about realtor experiences- I guess I got lucky.
One friend had to help her parents sell their home once- they weren’t born in Canada and English wasn’t their first language. This realtor was doing shady stuff with trying to get them to sign documents without them reading it (hence- why she went to the realtor meetings to translate what the papers said). And the realtor was even ‘brave’ enough to blantantly start hitting on her in front of her parents! Basically it was a ‘what’s your number- you’ve got a nice ass’… So proud of my friend when she told him to eff off. Total sleaze.
Post # 5
waitingtobeemrs14 : I would recommend using a realtor for a first time home buyer.
In BC commission is 7/3 per cent (7 per cent on the first $100,000, 3 per cent on the remainder) The seller pays the commission from the sale price of the house so a realtor will benefit you. Do not use the seller’s realtor. Although it is legal, I fail to see how they can act in the best interest of both the buyer and seller.
Ask friends, family and co-workers to recommend a realtor. It depends on where in BC you live, but in some places there are realtors who specialize in types of properties e.g. condos or areas e.g downtown
Realtors often sponsor free education sessions for first time home buyers, so check around to see if they are available where you live. You will learn a lot and not be taken by surprise by any steps of the process.
Post # 6
I am in Ontario and we are in the process of buying our first home too ( just made an offer today!) And I’ll say our realtor has really helped us. She’s been very diligent so far in everything and has helped us understand the process better. You basically get the best deal out of it – work with commission paid straight out of the sale. So no, nothing comes out of your pocket, and contrary to the belief, if you have a good realtor, they’ll care about making you happy and will advise you on your best interest because at the end of the day, their whole business depends on referral.
Post # 7
Thanks guys! I super appreciate the help. I feel so out of my league here!
Post # 8
waitingtobeemrs14 : we just closed on our house yesterday…yayaya but here are some lessons learned.
Yes, a realtor is very important. They will go to bat for you and work deals out that you never thought could happen. However, do you reasearch of the realtor. Ours got us an amazing deal, we walked with keys and a check for almost 5k, HOWEVER, she was impossible to reach, she missed our initial appointment to start looking at houses (she sent a co-worker who was amazing), she would “forget” important deadlines and I would have to email and call. She claims she never got a confirmation for the closing (which she was copied on all emails) and was late. She referred us to her attorney (you will need an attorney as well) and the attorney played games as well.
Even though we got our dream 1st home and an amazing deal, please do your research. If you have a family friend or someone by word of mouth, do that over a regular internet search.
Good Luck. If you have any questions, PM me 🙂
Post # 9
waitingtobeemrs14 : Another advantage of using a realtor is that they have access to listings before they are posted online. I was able to tour my place the day before it was listed publicly and the seller accepted my offer the same day.
Post # 10
Definitely get a realtor. I think in 2016, their job is less to find you a house (every single house she sent me I had already seen through an email notification system in my price range/area from Redfin), BUT she was SO HELPFUL in getting us the house well below asking. She’s also negotiated several things with them like closing dates, letting us get into the home to do measurements, asking for some of the seller’s furniture, getting things on the inspection list completed so we don’t have to, etc.
We looked for a house for 7 months but now we have our dream home.. so I am definitely happy with our experience!!
Post # 11
Get a realtor. As Julies stated, it’s bad positioning for you as a buyer to be at the mercy of the seller’s agent with no representation of your own. This is ESPECIALLY true if things come up in the inspection that need repair, the appraisal comes in low, etc… You don’t pay the realtor anything unless it’s a For Sale By Owner situation and the seller refuses to cover realtor fees, but that’s typically disclosed up front.
Post # 12
We are in the process of buying our first home and we are really miserable with our realtor. We shopped with her for a few years (on and off) and she is so popular she does a ton of closings each month. Unfortunately, we are seeing the downside to this now. She is not calming our nerves and walking us through each step. We are getting very frusturated with the lack of guidance she is providing. So the only advice I offer is find someone who gives you a TON of personalized attention. You will need it during the hellish process of actually buying the home. Actually, maybe I wouldn’t feel like it was so bad if I felt like our realtor was there to guide us 🙁
Post # 13
My best friend is a very successful realtor….
Having a realtor costs nothing when you are the one looking (it’s when you’re selling that you pay the %).
My friend had a couple that were looing at a FSBO (for sale by owner home). They found something else but less than a year later the FSBO went on the market through realtor for $20k less! They could have way overpaid for it