Expert: Jessica Bryan - 7/18/2006

Question
One of my relatives has offered to act as my realtor for a house purchase.  However, since he is very busy (with another job ... lawyer), he cannot help me look for property.  However, he has offered to give me his 3% of the buyer's realtor share.  So we've resorted to searching for houses on our own through various websites.

Are we doing the right thing?  Is this an opportunity that we should take advantage of?  The property that we have found are ok, but we may be missing on a lot.

Answer
Dear Eugene;
The 3% you are saving (rebated by your relative) may end up costing you the same or more by not having an experienced professional represent you.  A real estate agent who knows the area is a trouble-shooter, advocate, and valuable asset to you in a transaction.  He or she can help by pulling the sales history and showing your best values, resales, and deals.  You may think that you are knowledgeable about the market but you don't live and breathe real estate 50 hours a week.  You also don't get constant updates, take seminars and classes or compare properties all week long--every week!  It is what gives REALTORS the "edge" over the consumer. The buyer who trusts our experience and engages our services also receives assistance after the sales so you  are not taken advantage of. If inspection issues come up, a REALTOR will help solve the problems and renegotiate.  The agent will review terms of the agreement and make sure that you are protected.  In short, you might pay less for the home, and negotiate the problems with the home  after the inspections so that you are further compensated.  This can actually save you thousands of dollars.  

Good luck and best wishes,
Jessica Bryan