Do I Need a Real Estate Agent?

Q: We have been looking at vacant land parcels without an agent. What type of representation do we need? Should we deal only with the seller's agent or should we have our own real estate agent? Or, should we just have a real estate lawyer represent us?
 

A: I'm wondering why you've chosen to look for a property without the assistance of a qualified, knowledgeable real estate agent. Buyers do not generally pay for this assistance (to a great degree, the commission comes out of the seller's pocket) and you will not necessarily pay more for the property. In fact, you might pay less.

If you work with the seller's agent, you will have zero representation in this important transaction. There will be no one there to help you price out the property and figure out if you're overpaying for the land.

If you choose not to hire an agent, then you should hire a real estate attorney to represent you personally in this deal. Otherwise, you're at the mercy of the seller and that is simply not a position of strength. It's not a place you'd want to be.

I'd suggest you hire the best agent you can find for the area and possibly a real estate attorney to help you make sure the deal runs the way it should. This way, you'll be certain that at the very least the seller will provide you with all of the disclosures required under the law.

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not on the equity the homeowner has in the property," he explained.

While many housing markets have increased rapidly in value over the past decade, Druker believes that the current slowdown in the real estate market means more homeowners could be underwater by the time they get to the closing table.

"It's about how much you've borrowed against the equity in your home," Druker says.

Druker recommends asking the agent why she wants to know such sensitive information. Perhaps she's been burned recently by a seller who didn't pay her commission.

But other than assuring her that you have plenty of equity in your home, I wouldn't tell her anything about your personal finances. It's simply none of her business.

Clearly, you'll need to shop around to find other agents to come in and work with you on doing a comparative marketing analysis for your property. A proper CMA will give you a suggested list price for your property, a sheet with prices of homes that have recently sold in the neighborhood that are similar to yours (called "comps"), and the strategy the broker or agent has decided to use to market your home.

The right agent will listen to your concerns, offer excellent advice and strategy, and will work to earn your trust – without you disclosing your private financial information.

I’m glad you’re enjoying my radio talk show. The podcast version of the Ilyce Glink Show is available for free downloading at www.itunes.com.

Samuel J. Tamkin is a Chicago-based real estate attorney. Ilyce R. Glink’s latest book is 50 Simple Steps You Can Take To Sell Your Home Faster and For More Money In Any Market. If you have questions for them, write: Real Estate Matters Syndicate, PO Box 366, Glencoe, IL 60022 or contact them through Ilyce’s website www.thinkglink.com