WHOA! Can we stop the realtor bashing please???
All of us are not horrible, money grubbing people. I often advise my buyers NOT to buy for the top amount that they were preapproved for, unless they want to be "house poor" and unable to afford anything once they get into the place. I will take the time to go over different types of mortgages with them, figuring out the approximate monthly payments for each (including principal and interest, taxes, homeowners insurance, and PMI). I will also go over the closing costs with them so there are no surprises at closing. A good agent will be able to do these things with you. However, I also tell my clients to talk to different lenders to get specifics, as I can only give estimates. Lenders can plug your info into a wide variety of mortgage programs to see what best meets your needs.
I do not ask my clients to sign buyer's contracts. If they like my business, they will stay with me (and they do). However, if they want to buy a For Sale By Owner home, who am I to tell them they can't? I will negotiate on their behalf if either the seller or buyer offers to pay me, but I put myself in their shoes. If I found the perfect house for myself, I would not want to pass it up. And i have lost clients this way, but I would lose sleep instead if I prohibited my clients from being happy in a house. For that reason, I never push someone to buy a house, but I am honest with them about whether I think they will lose the house if they wait.
I don't know how this works in other areas, but here in central NY the seller pays the entire commission. Half of the commission is paid to the listing agent, and the other half to the selling agent. So there is no incentive to NOT work with a buyer's agent - it doesn't cost you a cent! Around here, almost EVERYONE buying a house has a buyer's agent. The listing agent is working to get the best deal for the SELLER - do you think they will work to get the best deal for the buyer too? Sure, there is dual agency, but it's a concept I don't believe in (designated agency, where two agents from the same office represent two different sides of a sale, is fine) - but how can you have one person represent both sides of a sale fairly?? I have done deals where a buyer bought the house through me as the listing agent, but only after I disclosed to them that I was a seller's agent and working for the seller - explaining to them that I would treat them fairly and honestly, but that my loyalty was with the seller. They understood and chose to buy through me anyway. Any of this making sense? Just be sure to get a realtor who discloses to you which side of the deal they are working on, and honestly, be a little wary of anyone who is trying to work both - they are probably still working for the seller, even if they say they aren't.
I understand the inherent contradiction in working to get a buyer the lowest price, even if it means a lower commission for you...but that's how I operate, and I know there are other agents out there like me. A few words of advice: ALWAYS get a home inspection. ALWAYS use a lawyer. If you are not comfortable with an agent, there are probably at least a few hundred more in your area. Look around. Don't sign any contracts unless you are really comfortable with an agent.
In response to the person who wondered what an agent really did:
Pre-qualification, referral to a lender for pre-approval
Assistance in determining monthly payments, closing costs
Referral to local qualified home inspectors, pest inspectors, lawyers, home insurance, etc.
Personalized listings sent directly to you via e-mail, fax, phone calls, etc. I have the MLS set up to automatically e-mail clients with listings that meet their specific criteria as soon as it hits the market - so they often see the houses before I do.
Personalized showings, arranged at your convenience (some agents will drive you around too and waste their gas!)
Someone to draw up the contracts and negotiate on your behalf
Someone to attend to all the little details along the way: home inspection negotiation, removal of contingencies, closing details, even the little things like finding local service providers, guidance in switching utilities, etc.
Someone to attend closing with you on your behalf to address any last minute issues
I could go on...but if the seller pays for the entire commission in your area, why would you pass this up for free? And if not, you will have to decide if it is worth your money or not...we're not all bad
I guess I got off on a little rant there...but if you want to find a good agent, ask them about the above things and what they will do for you, how they will communicate listings, how often they will be available to show houses (a good agent should not have so many clients as to be spread too thin - then you risk not being able to get into hot properties before they sell). Good luck!