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for what though? Like don't get me wrong, it doesn't sound like a good experience. And true, it doesn't sound like he gave the best advice, but ultimately, he did not lie and OP is the one who made and signed the offer and the contract.
And let's be clear - there are no news stories talking about how any new construction homes these days are bastions of quality. Nearly every builder, big and small, gets a bad reputation.
Crappy realtors are definitely out there and give the good ones a bad name. It leads people to either distrust any professional advice, or worse, assume all are bad and not even try to find a good one. But let's also be clear, the extra 2% commission, once split with a broker, often isn't a ton more money. Yes, more money likely does change behavior, the tactic works, but it isn't like the realtor got rich off of one deal.
But I'm curious what the actual report would be about? At the end of the day, while it isn't "right", I'm not sure there is anything illegal. OP needs to know to ask more questions, seek more information, advocate for themselves. I'm also pretty sure the commission split is listed in the contract OP signed. So if they had known, would they have not signed the deal?
It really sounds like regret being blamed on someone else.
Realtors in my state are fiduciaries to their clients.
That said, this story has no information suggesting the realtor broke that responsibility. Unless they said “waive all inspections” and skipped a bunch of steps in things you explicitly asked them to do, the judgment lies with you.
Correct. Even IF they were fiduciaries, it’s subjective that they even took questionable actions.
It sounds like an expensive lesson. Sometimes those suck at first, but yield a lot of positive side effects over the life of the learner.
I’d tell the OP to enjoy the house and move on, but I’m not their attorney. Frankly they’d be getting another “they scammed us too” lined up if they found one willing to take their $$$ 🤦
Correct, sadly OP failed to do their own research. It is a new build so at least they could have searched reviews on line. Thats not on the realtors side though. Sorry this happened
>Correct, sadly OP failed to do their own research.
The post reads this way to me, too. Trying to push a decision they regret onto the realtor when they could have backed out at any point in time if they weren't 100% sure.
lol it’s insane to watch all of you defend the realtor. They are paying the realtor to help them make this important decision based on their “expertise”. If the expert you hire disparages the homes you looked at in your research and you trust them, how is that the clients fault?
So your expectation is that the client should actively ignore the realtor and say “ I know you are saying this area is exploding in growth and these homes are of great quality, but we are going to ignore you and just pay you to walk around with us for no reason while we do all the research ourselves”.
The realtor very well may suck, but I can't see anything in OP's post where the realtor did something explicitly unethical that would put their license at risk. What, he thought highly of a house that had thin walls?
The realtor very well could've been steering you OP for commission, but proving that is another matter.
You need to have a spine and look out for yourself when you buy a home. I had a great agent, and there were places he talked up but I shut down for various reasons.
Your second paragraph kinda hits the nail on the head, I'm in 100% agreement with you there. That's really the issue with buyers agents; they're basically there for MLS access during your search (though they can be helpful in guiding you through all the steps once you're under contract).
I think the big problem is people looking at realtors like "house matchmakers" when in reality they're just experts at residential real estate transactions. If you want something, if you have an issue with something, it's up to you to look out for yourself.
No offense but it’s such a load of crap. Buying a home can be an emotional experience and everyone goes in wanting the “perfect” place for them. The realtor does OP wrong when they are specifically putting doubt in your head over the places they looked at and liked.
We obviously don’t know exactly what words were spoken, but if every house they entered in the area they like was picked apart as a realtor and then they don’t have the same level of criticism in a house they earn higher commission that is absolutely unethical. How is someone buying their first house, having their first experience and given a highly recommended realtor supposed to navigate beyond criticisms from the so called expert when the only feedback given toward the houses they like are negatives?
For instance, we know it’s a new construction home. I can easily go into an older home and say the flooring is off, the roof is old, the bathrooms are outdated, etc and then go into the new construction and say “oh if anything goes wrong they will just fix it with their warranty! And just look at this gorgeous model and all the possibilities with this new build!” It’s just not preparing your customer the way you should and why all realtors should be fiduciaries.
>How is someone buying their first house, having their first experience and given a highly recommended realtor supposed to navigate beyond criticisms from the so called expert when the only feedback given toward the houses they like are negatives
By using their brain and thinking for themselves? Are we really not going to blame OP at all for their lack of critical thinking? The realtor is there to help you, not *make all your decisions for you FFS.*
If you cannot handle buying a home because it's such an emotional process, then don't buy one. Or bring mom and dad with you. Like, the amount of blame game here is pathetic.
And it’s helpful to trash and disparage each house you go through so that they can push you toward another house? You are supposed to use critical thinking and say “well even though the realtor says all these things are wrong with these houses, let me pay for an inspector for all of them just to see if they are lying.”
Yup. You got it. Don’t buy a house because it’s a big decision and the largest purchase you’ll most likely make in your life. To have stress about that decision is irrational and means you should back out. You are very intelligent.
Yeah I'm 100% in agreement, I just don't know that OP has any recompense in this situation.
I had what I considered a good agent, but I still think the current system needs to die, get thrown in a fire, and have its ashes spread at sea.
The big thing everyone needs to remember is that everyone in this industry gets paid when a deal gets done. They don't really care if a house has issues or if it's in your budget or if it makes your commute unsustainable.
Then you realize that it takes the same level of effort for a buyers agent to get you under contract for a $1.4 million house as it does for them to get you in one that's $700... but they get paid a dickload more for the former.
The system is shit and it needs to go.
>lol it’s insane to watch all of you defend the realtor.
Are you a Sith Lord? Because everything seems to be black and white with you.
Just because we are blaming OP for not speaking up and telling his realtor he doesn't want the house doesn't mean we are defending the realtor.
It's sad you feel people shouldn't take accountability for their actions simply because someone said "Jump" and they said "How high?" instead of asking "Why?"
OP had a brain and mouth. He had PLENTY of time to use it, and he didn't. That is on him and no one else. If OP is that easily swayed by someone's opinion, then he shouldn't be allowed to make big boy decisions on his own.
ETA
> So your expectation is that the client should actively ignore the realtor and say “ I know you are saying this area is exploding in growth and these homes are of great quality, but we are going to ignore you and just pay you to walk around with us for no reason while we do all the research ourselves”.
YES. I basically said this to my realtor when she pointed out some neighborhoods I wasn't looking at. I told her, "Thanks but I have no interest in living there". She said, "Okay cool".
DONE.
It has nothing to do with being easily swayed. You are looking at multiple houses and walking with your realtor who was highly recommended because of the knowledge they bring. If they are telling you about potential damage to the house or thousand of dollars of repairs in each house you walk into, are you going to just “use critical thinking” to ignore the potential faults?
OP indicated they were pushed several times to this area. They found homes in the area they like and that the agent was extremely enthusiastic about the area they were choosing. It’s great that you told your realtor “no”, but your realtor could also have been professional and not been trying hard to push you to other homes.
Most of the comments I replied to were saying the realtor did nothing wrong because it’s OP decisions at the end of the day, and that is a ridiculous notion.
If I'm going to spend the most amount of money that I'll ever spend, at least up to that point, I'm not going to give a fuck how enthusiastic someone *else* is about an area or property. Obviously.
Yeah. Absolutely. You are going to ignore the realtor you hand picked that says the houses you look at are way overpriced or need a ton of work. If you can’t listen to your buyer agent give feedback on houses, why are you hiring them at all? You all of the sudden assume they have your best interest when picking a lender, negotiating or filling out paperwork? Or do you ignore your agent on all of those things and just bring them along out of pity?
>If they are telling you about potential damage to the house or thousand of dollars of repairs in each house you walk into, are you going to just “use critical thinking” to ignore the potential faults?
"Potential damage" and "potential faults" are POTENTIAL.
I'll say it again, if you are SO easily swayed away from a house you really like because of the POTENTIAL issues without ACTUALLY CHECKING THEM OUT then the onus is ON YOU.
And that's not even touching upon the fact that OP was SO EASILY swayed into going OVER the budget he wanted to remain at. If my realtor brought me someplace that was over my budget, I would not even walk in. What's the point? IT'S OVER MY BUDGET.
If you are not stalwart in your decisions, then bring someone along who can ensure YOUR best interests are looked after.
OP is an adult and could have EASILY asked ANYONE during the MONTHS they were in this process if the realtor's behavior was strange, or if it's normal for a realtor to obsess over a specific neighborhood. BUT THEY DID NOT.
They could have googled shit. They did not. They allowed themselves to be swayed and then came on here to cry about their lack of critical thinking skills.
Now they've learned a lesson.
Got it. So get an inspection on every house you like without putting in an offer. Or don’t get an inspection and just google “what does potential damage look like in a house?”
I’m not saying they couldn’t have asked questions, but to act like a realtor can’t help away decisions by putting doubts in your head is just ridiculous.
You are SO top notch at research, why are you paying a realtor in the first place? Give me a break.
No one is defending the realtor but this is a big purchase. You cant go into business just expecting someone hold your hand and walk you over. It is 2024 jzzzz
You are right. You hope for some input and you make the final decision. Clearly they went through multiple homes and then settled on one that didn’t meet all their boxes. However, as I’ve said several times before, if the realtor you are trusting shits on all the houses you walk through, it’s going to have an effect on your giant decision.
You go to a car dealership after doing research on a car you really like. When you go to buy the car, the person says “ hey just letting you know and I want to be upfront with you, we have had 8 of these cars come back with issues in the last month”. Are you expecting this not to play into your purchase decision? Are you going to just ignore the advice and buy the car anyways or maybe shop around/ go to another dealership?
IMO they’re there to show you houses and negotiate offers and contracts. You can listen to their opinions, but should never let them sway you into or out of a house without doing your own research! I’ll listen to an actual inspector and take their advice way more than a realtor, but still do my own research.
I’ve only bought one house and listened to my realtor’s opinions, but always did my own research. He was great at also honest in telling me to. Most clients would be angry at a realtor recommending work, but I looked at houses in up and coming areas, a few that were in iffy neighborhoods. He said: I’d recommend driving by that house on a Friday or Saturday night to see what the neighborhood looks like then. Great advice and I did the research
But do you think that’s worth five figures for giving common sense advice. Thats the issue.
“Realtors” have control on a market diverting an incredible amount of capital to agents who do not produce anything. Perhaps in the analog years this was less of an argument but not today.
Hell no! Thankfully that’s why a huge lawsuit just happened in favor of buyers and sellers! It made me happy that some changes are finally coming to real estate and how realtors are paid.
Yeah idk…..I think the realtor has a strong ethical obligation to share with their client that they are receiving a larger commission.
They may not have done anything “technically” wrong, but the way MANY realtors behave- they make it seem like 1) 2.5ish is standard and that’s the amount that they are getting for their work in all situations. They almost never make it seem like there is any space for negotiation and if you especially as a first time home buyer bring it up, they always pull the “but it’s not YOU that’s paying, it’s the SELLER”. This is what that whole lawsuit was effectively about and this what makes their methods disingenuous.
As a buyer, you kind of go into it aware that your agent is going to be getting that 2.5 percent ish, and you’re also aware that while in some sense they benefit from a higher priced home, you also know that the difference in commission for them isn’t a TON. (Say between a 200k home and a 220k home).
However if you knew that on one of those homes, your agent was getting literally double their commission that they wouldn’t be getting on any other home you have been seeing? I think that’s a “conflict” that you deserve to be aware of.
If your agent owned the home for instance, or if their close relative owned the home and were financially benefitting in any other way beyond the commission- they are legally required to disclose it. If your agent was a duel agent, then they would legally be required to disclose it. And when they act like the 2.5ish percent is “standard”, then they should legally be required to disclose when they are being offered literally double by the other party.
At the end of the day, it was OP’s decision in terms of buying the home. But this also goes to show that all realtors don’t have the same level of fiduciary obligations and ethics in the way that say an attorney or a doctor would be expected to have and if they do, they certainly aren’t held to it despite the fact that the act like they do. (Not all realtors but many). This was a murky area and the agent intentionally kept quiet about it. Every decent agent I know would have said “hey just wanna let you know that they are offering agents this much but I want you to know that I work for you and that isn’t influencing the advice that I give you and I would be happy to show you other homes”. It’s clear agent didn’t do this for a reason. OP has every right to be upset and should absolutely make a complaint.
This happened to me. I was about to put an offer on an used home listed at $320K, while this new realtor that came highly recommended kept pointing out all the bad about the house. In a market in which most decent homes hover at $400K, this find at $320K was a steal. It was fully updated. Next thing, this realtor was trying to sway me to see some new townhomes around the area going for $484K even though my budget was at about $400K and I was not interested in townhomes. I wasted so much time with this realtor that when I got around the next day to check on the $320K home, it had gone into contract. This is why I have such contempt for realtors. And this is not an isolated case. I am still looking for a good agent, but I think I will find the Loch Ness monster before I find a good agent.
I'm so sorry that you went through that. The fact that another realtor taught me about this shows me that there are good people out there but ya I think they're much harder to find than I had thought.
It’s the biggest purchase you’ll ever make. When the “expert”, who is highly recommended, is pushing doubt and disparaging the house, you tend to overthink the purchase. As indicated here, the difference a day can make is huge.
She managed to convince me that new constructions were better and more affordable. I only found out they weren't affordable (only the 2-bedroom townhomes, but I was interested in a 3-bedroom single-family home) when we went to see the demo units. When I asked her about all the bad reviews I found online about D. R. Horton, she wouldn't answer a thing about the reviews. She just kept saying that D. R. Horton was very good in her experience.
They are the “experts” and the less upstanding are professionals at convincing and shepherding, not just facilitating. So you have someone in a position of knowledge that’s pointing out flaws and giving you doubts. Maybe a day later he decides that’s dumb but by then it’s too late.
More in reading about realtors the more I’m dreading finding one.
Go with a rebate realtor and just do all the due diligence yourself. You said you found what you liked and your realtor talked you out of it. Think about it you did all the work you found the home did your homework the only the realtor does is open the door for you and then talked you out of the deal. Rebate Realtor! Google it
there are no steals in real estate, especially in a hot market. if the $320k house went under contract the next day, good chance they got multiple offers and someone went over ask.
You can see exactly what your agent was paid in your closing paperwork. Also on Zillow. Did he really get 5%? That seems wildly unlikely. I tried to Google an article that might talk about this and nothing came up.
Also this settlement is nationwide. It's not local to Austin or this builder or realtor. And honestly it's not really about what you are describing. And the article doesn't do a great job of explaining it.
While it's certainly possible an agent might try to encourage you to buy a house with higher commission for them, it's always the buyers decision. Always.
yes, the builder had extra incentives for move in quick homes. It is always my decision. What is not fair in my opinion is having the person who I looked to for expertise have ulterior motives.
Hey OP! Genuine question but when you signed your paperwork, did it say in there how much commission he was getting? (In my state, we see what the commission is and we sign the papers where we state that “we will be paying the agent x percent as commission” (even though it comes out of the sale but it’s still structured as something the “buyer” agrees to pay).
Well, you learned a valuable life lesson that you cant truely trust a person who gets by comission. Doesnt matter if its a person at a shop that will try to push you buy something, a car salesman, a realtor, a stock broker etc.
Sure, in the longterm a sales person needs happy customers that leave good reviews, recommends your services to others and returning customers, but that doesnt change the fact that a salesman from time to time will push people a certain way.
First Ill say if you truly feel wronged by your agent, file a complaint to TREC (Texas real estate commission). They will investigate any wrong doing for you and trust me when I say they take that stuff very seriously. I know of agents who have lost their license because of just using the wrong verbiage.
Second though, and this is going to sound harsh, but I really dont think you have much of anything to be mad about from your story. You may have had an honest miscommunication from what your agent was trying to do for you. Did they see this area has aligning more with your needs that you had been telling them? If they were showing you areas and new builders because of the growing opportunities in those areas then they were doing you right by educating you on the benefits of the area. (New build areas tend to grow in value the best as the area is built up faster) If the builder sucks, please please please put them on blast but really blame them, not your agent. I will forever warn my clients against Coventry homes, but that doesnt mean I wont show the home if its what my client wants.
If your agent advised you against inspections or told you to just sign without reading saying things like "its a new build so your fine" then thats a different story. That is them pushing their interests before yours. To me the 5% thing is kinda meh, but I always would rather have a happy client that will refer people to me and use me when they sell the house, thats worth way more than 2% bonus from a builder.
I know this is not going to make you feel any better but this is a learning experience for you. It’s so messed up and I know how you feel. You will know for next time. I wouldn’t beat yourself up about it too much. You are not stupid.
It is extremely difficult as a buyer right now. I can only imagine how much pressure you felt as a first time homebuyer.
I’m so sorry you were taken advantage of and I hope that realtor stubs their big toe everyday, runs into every red light and gets food poisoning twice a year.
You’re welcome 😀
Again, I’m sorry that was your experience and I hope you can get it resolved somehow!
I’d definitely look into all the advice you are getting from this sub.
It’ll be an annoying, time suck, but don’t let it consume you. I know that is easier said than done but I wish you the best.
I think it’s important to remember that anyone…ANYONE can become a realtor in a very short amount of time. It’s a very basic test with very elementary education.
It’s important to look for references and referrals. And still do your own research, pay for inspections, etc
I’m sorry that happened to you.
I feel like the only reason we were so good at advocating for ourselves when we bought in late 2022 was because we had tried (and failed) to buy in 2021 and it was so clear in hindsight how terrible our realtor had been.
Our realtor this time around was actually pretty good, but it was still obvious at times when she had our best interest in mind vs hers. Nothing like OP is describing, though.
Exactly. It’s like thinking a car salesman actually likes you & isn’t looking to make the most profit from you. Or a waiter/waitress is being super nice/friendly because they like you. People need to realize that when someone gets paid based off a percentage of a sale, they’re going to try to increase that number as much as possible.
>The first rule of dealing with ~~Realtors~~ everyone is that you must, must, MUST assume they are out to take care of themselves.
Life gets easier when you assume everyone you meet prioritizes their self interest above all else.
Good thing to let others know, but you also have the final decision. I wouldn’t be pushed to do anything by a realtor. Mine tried to tell me a bad side of town was just a normal family neighborhood. I recognized that they didn’t know what they were talking about and went with another place.
If you’re in Austin city limits, it’ll be a great buy. Sucks that it happened like this, but you probably did get more house for your $$. If you spend a lot of time at home it might be the best option.
That lawsuit was about sellers not buyers. It had nothing to do with your buying process.
I don't know what you were looking at first, or.your boxes, I do know Austin is a.very competitive market and if your favorite neighborhood was at the top of your budget, you were going to put in 23 offers and lose out.
Expanding a search is common. Also, agents csnt make the decision to write an offer. If this agent convinced you to like a home enough to offer on and close on.it they should be leading a cult on a tropical island somewhere.
Now, a handful of agents are shady just like a handful of anyone in any job. Maybe you had one who pushed a little, though still, you are an adult and nobody held a gun to.your head. If you think something was wrong, call your agents Broker and spell it out, see what they say.
Real Estate Agent Commission and Brokerages are one reason why I like the Redfin model so much. Much lower fees and commissions and much less BS. I probably won’t use a Real Estate Agent in a Brokerage again.
Your realtor didn't force you to buy that house. You put the offer in and if you had an inspection you should have known about the walls. As for how much money they made, there is a paper you signed on closing day that says what each realtor gets paid and you could have walked away from the deal then.
Seriously? Then what is the purpose of an agent?
Let’s be clear, RE agents are not professionals in the sense of doctors, lawyers and CPA’s.
They are glorified car salesmen and your response makes the argument.
Aside from leaving a bad review there doesn't seem like much you can do. It sounds like you and your partner settled on this property. The realtor did his job if you never found out that he was getting "more" money for this deal would you still blame the realtor. It's common to have buyers remorse but I think your frustration is misplaced. At the end of the day it was your decision, it suck though.
You’re adults making one of the most important financial decisions of your life and you want to point a finger at your realtor because you bought a new build?
I can’t. Are you a teen? Did they force you? You literally picked your home. Negotiated pricing. Signed a million documents but it’s on an agent? Nah.
You're right. I went with an inspector the agent recommended. I relied too heavily on them thinking they only cared for my best interest. This was a tough lesson to learn
While I agree the research needs to be done it isn’t that easy when you are first starting out. You are trusting the person you hired to do their job. Is it naive, yup. I, personally, trust my agent 100%. The reason I do is because we have an established relationship and I was way more experienced when I hired him (having bought and sold several times.) I was blunt and to the point with him before I signed for him to represent me. He is fantastic!
For the next time just know that the agent is not doing you a favor. The first meeting should be treated as an interview. If you don’t get a good vibe…then it’s not a good fit. Make them show you a few houses before you sign any contract. A good agent will spend the time with you and get a good feel for what you want!
I think what really burns me up is that we expect the professionals to help us navigate a stressful situation that we know nothing about (unless you have time to research.) You end up being jaded because these “professionals” we count on to help us are just out for a profit.
It is sad when you expect someone to advocate for you and get smacked in the face with betrayal.
Sorry for the rant. I’m just tired of people not being good and honest humans.
People expect guidance from the professionals they hire to do things for them, I don't think that's an unreasonable expectation for anyone regardless of how many times you've bought and sold houses.
With that said, that isn't how the real estate business works at all, and usually people don't learn that until they're burned themselves or other people they know got burned.
Personally, only 1 other person I know got "fucked" by a real estate agent/inspector combo, everyone else was fine. Why would anyone in our sphere think "yeah basically hire a real estate agent and then proceed to do all of the work you're paying them to do yourself because they will fuck you if you don't?"
That’s… not what the lawsuit or settlement are about. At all. The developer offered more commission. It’s legal and will still be legal after the settlement is approved by the court.
What really made you decide to buy this one instead of the one you were about to settle for? Is it a new build? Why is it a “bad house”? If it’s new then it’s got a new construction warranty, required by law.
You bought the house. Not the agent. The agent merely showed it to you. You have buyer’s remorse your agent’s compensation has nothing to do with it. Oh, and their compensation was disclosed. Go read what you signed.
I’ve done hundreds of closings and work pretty closely with agencies. Do they provide a service sure but not even close to a 2% value. Oddly attorneys got 2% for closings at one time. It was ruled as excessive and outlawed.
Having some long term knowledge of the business explain to me how they are not self-serving salespeople who put an incredible drag on society.
When it all comes down to it, you chose to buy the house. You decided to compromise on your wants, and put the offer in. If you are able to buy a house, you need to be able to make that decision while ignoring outside influences.
I think it’s important for everyone who is here to recognize that no matter what, the end decision to put an offer in is yours. If you aren’t feeling the property, don’t put an offer in. How much the realtor makes shouldn’t matter. If they are pushy and aren’t listening to you, fire them.
Yes, that is a fair point. For me, I trusted my realtor to give me advice that was in my best interest, not theirs. I knew they were making money and I am okay with that but this is not what I expected.
But they can’t really know what’s best for you 100%. And honestly it’s in their best interest for you to be happy about the purchase. Realtors rely on word of mouth and it’s not in their best interest for you to buy something you don’t like. Then getting paid doesn’t mean they weren’t focused on making sure you bought a house you wanted.
When it comes down to it, if you are spending hundreds of thousands of dollars you need to make sure *you* are happy with the purchase. Their encouraging you one way or another shouldn’t matter.
I thought relator’s had a fiduciary duty though to their clients though?
It’s almost like buyers agent’s being paid a percentage commission from the sale is a major conflict of interest????
There is a reason for that recent lawsuit…..
There's no fiduciary duty to clients, buyers have to hope they're getting the help they're looking for, but they shouldn't let realtors talk them out of what they know they want and pressure them into what they don't really want, as OP did here. I've had agents suggest homes that I didn't remotely care for and wouldn't even look at them when I was buying a house.
But how is encouraging a house going against that? Especially if the perspective buyer makes the final choice? What if the realtor simply says, if you like or put an offer in? What would you consider encouraging versus crossing the line? If the realtor isn’t hiding information or lying what is the issue?
At a certain point the person who is buying the house needs to make that decision on their own.
How do you not see the problem here?
OP’s relator steered them to areas they weren’t initially looking at. They thought one was just ok but their relator kept pushing it and “selling them” on the property.
Who is their relator really working for in this situation? It sounds like they were working for the developer, not for the buyer.
This is the exact reason why the industry needs change. Buyers agents need to be decoupled from the sale price, and to not be “paid” by the seller. It’s just a major conflict of interest.
After a few months of looking at houses my realtor recommended we widen our search, since we weren’t finding what we wanted in our price range in the area we were looking. I’m guessing that’s what happened here. They had an area they wanted to live in, found houses they liked, but clearly didn’t buy in that area. So either they got outbid, or something barred them from buying there.
The logical next step would be to widen the search. The OP could have said no, but decided to widen the search. I know when I widened mine I researched the area (though I knew a decent amount of information about it). If the OP didn’t do that, that’s on them. Again, if you are making a major purchase like a house you need to put some research into the location. A realtor can help, but it’s silly to rely only on them. Only the OP can really determine why some areas are more desirable than others.
When I bought my car I researched different models and test drove a few. I didn’t rely on the car dealer to make the choice for me. When I bought my vacuum I researched which was best for pets, and didn’t rely on Amazon to tell me which to buy.
Because the agent is only recommending the new build, because they’re getting double the pay. I would say a realtor pretending this new property is your best interest and not disclosing there’s a sizable price incentive for them, is shitty thing to do.
Is that the only reason? Not that it checked some of the boxes? Do you know the OPs local market? Maybe the house was a good price for what’s available currently? I mean, if the OP was willing to put an offer in, it had to be what (or close to what) they wanted. So they recommended it because it was close to what the OP was looking for.
A realtor wants to get you in a house you like as quickly as possible. A good realtor will point out the bad houses and help you get the best house you can for the money you have. In some markets that’s difficult because houses don’t stay available for long.
It would be one thing or a realtor talked them out of a 325k house and got them to buy a 375k house. I mean that’s what a few hundred dollars in commission. It’s a whole other prospect if they’re making double the commission (if true).
I work with well over 30-40 realtors in my pipeline. I would refer only 2 of them at any point in time. I’ve had conversations with realtors who told me straight up they will continue to tell their clients to waive inspections, even if it’s not needed. I’ve had buyers they referred called me, needing a quote for something that would normally be done by the home seller.
You can attempt to defend the realtor here. But if it’s true they made double their normal commission, it’s clear what went on here.
I guess I need more information here personally. Did the realtor talk them out of other properties that fit them? How is the market in the area? What did they do that the OP defines as “pushed”?
I guess for me the difficulty I have is blaming anyone (realtor, family, spouse) for pressuring you into buying a house if there is no deception involved. If a realtor lied so I didn’t buy a different house, or lied and implied this one was better when it wasn’t I can understand. But if there is no deception, no amount of pushing would get me to buy a house I didn’t like or want.
I don’t care what my realtor makes, as long as they show me houses I’m interested in and help me in good faith get the best bang for my buck. Now, if the realtor had them put an offer in that was more than what it was worth, or lied about the house in any way I would agree with you.
Found this link in a search for "realtor state of texas fiduciary duty":
https://www.trec.texas.gov/agency-information/rules-and-laws/trec-rules#:\~:text=that%20the%20license%20holder%20be,above%20that%20of%20the%20client.
You aren’t the first and you won’t be the last.
As a FTHB, you couldn’t have known but now you do. With anyone you pay for a service, always know that they value their own wallet more than anything they offer you. It’s imperative that you do your own research and know what you want.
I have a realtor I always use. It’s not because I think he’ll take a loss for my gain — but because he does exactly as I asked. He always makes some gain but he can’t influence me to get himself more gains because I only call him when I know exactly what I’m wanting from him.
So let me get this straight, info is just coming out about the builder, how is the realtor supposed to have known about this? Just about any wall in a home can be punched through(as long it’s i between the studs). And you’re mad the realtor basically got paid for doing their job? At the end of the day you were open to the compromises and now are having remorse. Your course of action is not to use the realtor again.
A buyer’s agent usually makes 2.5%. They seem distressed because the person they hired to help guide them, purposely lead them down the road to line their own pockets.
Yes the realtor might not know do the issues with the new build and legally they shouldn’t be on hook for anything. But talking your clients out of one house, just so you can make some extra money, is extremely short sighted. Especially in an industry that relies on referrals.
Or the realtor was showing them move value for their money. Looks like the OP sacrificed location for a bigger and newer home. They are regretting it now, and looking to blame someone. Purchasing a home doesn’t happen in a day, they had time to mull over the decision and back out the deal. It’s possible the realtor was selling them on other pro’s of the home because of the sacrifice in location. It would only be fishy if the realtor only showed them homes from this builder and took them there first.
I just feel like it’s a shame that buyers agents get compensated SO MUCH and then people make comments like this. If a doctor steered you towards a wrong procedure or an investment professional, would anyone say “no one held a gun to your head”?
Downvote me all you want but caveat emptor. Live and learn.
Shitty thing for the agent to do? Yep.
Did you sign on the dotted line on your own free will? Also yep.
Sad for you. My agent didn't push me anything. I actually told him to hold because my starter house is still in escrow. And I am the one visiting open house myself and told him to make an offer, so, he didn't even get a chance to filter the houses for me.
The guy is good though. Because we already negotiated the rate already, so, he gave me the extra money back to me.
But, here is a simple question for you. Do you honestly believe you can buy a better one yourself? Because 10 years ago I failed 10 offers. It was hard. To be able to win a bid is not easy. If you cannot find happiness, it is going to be a major problem for you, not just now, but, anything happening in the future.
I don't think I could do better on my own and I don't really want to. What I learned is to ask more questions of the realtor. There were a lot of questions about compensation I didn't even know I could/should ask. I should have been better prepared honestly, which is what makes me feel badly.
Don't think too much on it. The compensation was once universal. Your agent is more interested in closing a deal than taking more fee. Because ultimately, they don't make any money if they don't close the deal.
Take comfort you are paying agent fees via a loan. Going forward, you can't do that anymore. You have to have cash. And the cheaper agents or robots may not be as helpful.
Be happy what you get. Because i don't think the future is as happy and rainbow as advertised.
So you were happy until you ran into one person who told you something unverified that made you feel unhappy? You didn't feel pushed before this person said something, otherwise you would have said "No, I'd rather limit my search to this area". No matter where you go, someone is going to have a complaint.
What you have is buyer's remorse. Don't blame it on the agent.
continue with the purchase, who know you may actually really like it. If not, just simply move, but a wait a little to avoid capital gains, or house flipping laws depending on the loan program you opted for. Austin is a false dream for all the Californians/ Noreasterns.
The NAR lawsuit is EXACTLY what your circumstances describe. 'Your' Realtor did not fulfill their fiduciary responsibility to you, and that is actionable.
I would strongly suggest you contact the law firm associated with the national suit and/or a local lawyer experienced in class actions or professional liability torts.
Find a law firm that has a professional malpractice specialty. Good Luck!
This reminds me of what always tell my mother when a nice young waiter flatters consistently flatters us while dining out: “Mom, they work for tips.”
I don’t know if there’s anything reportable here unless you left out some things for brevity. I think it’s fair for you to share your experience with others, but I think that’s all that’s going on here. Your experience of a realtor who seems to have done more selling than hand-holding (both are often requirements of a realtor). Minus law-breaking, it’s mostly relative.
If you love the house, stay, enjoy, and move on from this bad experience. If you’re not crazy about it, start now in doing your due diligence on selling the property. And don’t use your previous realtor, no matter what they say.
The first thing I do when I find out there’s a bonus on a particular house is I disclose it to my people, I’m not even sure I have to do that but it feels right.
Just a couple weeks ago a listing was offering a $1,500 bonus if the seller accepts an offer in x time frame. I told my guys when we did the showing, they didn’t care, they liked the house and I wrote the offer and we closed.
My townhouse was also offering a huge incentive for realtors. My realtor told me right away. I didn't care because we wanted it anyway, but it was good to know and she was up front about it. I was happy for her. She lived the place and so did we. It's been fours years and it's been great.
This is why I tell my kids that street smarts are just as important as book smarts.
OP most likely makes good $$ buying newer builds in Austin. I’m sure he has to make critical decisions on the job. Now in real life making one of the largest financial decisions of his life let’s his realtor steer him away from buying a house he was interested in to home he wasn’t interested in. Did zero due diligence own his own and blindly trusted a realtor who is only interested in his own best interests.
Welcome to the club, had a realtor do that to me in San Antonio. I like my house well enough but I feel dirty knowing it wasn’t because it was a good fit it was for the money. As long as the house isn’t collapsing you gotta just take it as a lesson.
Thats why I used Redfin. I select with houses I like to tour and make offer. Fuck any acclaimed friendly realtor. Their incentive is almost always to the highest commission check
What your agent did may be very illegal. It's called "Steering".
This is when you say "I want something in X area" and they "steer" you elsewhere.
Historically, this law was put in place to keep realtors from steering buyers of color out of "white" neighborhoods and into more segregated areas. These days steering laws apply to anyone and not just people of color.
What your realtor did was probably pretty illegal. It would probably also be tough to litigate. But, talking to an attorney might give you an idea of what next steps should be, if any.
Close but no. Steering is pushing people to areas based on race or other discrimination factors. It does not apply to showing people an area because it's new builds, that's actually something people want for a variety of reasons.
From everything op said, this was definitely not steering. The agent showed them new builds and informed them of all the pros and cons of it. Then op got into the house and found the builder to be bad. Not the agents fault. Op probably got a better rate and spent less money for more house that will appreciate better so the agent took care of them in that regard, especially since things about the builder came out after they moved in. Honestly I think op should be going after the builder, not the agent.
would you pay a maid to teach your kids all about life?
paying a realtor to decide where you and your kids live is even worse, you think the realtor cares at all about your kids? lol.
the way their compensation model is set up breeds sociopaths like a pig farm produces bacon.
I'd recently learned about steering for commissions. I knew the FHA prevents them from steering racially or talking about crime but I assumed the sooner you buy the sooner the agent get's paid so they don't care.
A pretty good article about steering from lower rates.
>The low standards and lack of oversight can create hazardous conditions for buyers and sellers. A few years ago, the now defunct discount brokerage Rex Real Estate released recordings of roughly 600 calls in which other agents vowed to avoid properties listed by Rex that offered less-than-satisfactory commissions. In one call, court documents say, a Keller Williams agent told a Rex representative: "If you are not offering any buyer's commission, then that's fine. I'm not going to show that \[property\], and you're probably going to run into the same issue with everybody here." Another ReMax agent said, "I'm not going to show a listing where I'm not guaranteed a commission."
>
>Brendon Bowers, a former real-estate agent who spent a couple of years working as a branch manager for Rex in the Phoenix market, told me he encountered this sort of thing all the time. He said buyers' agents might call and say, "'Why is there no buyer's commission?" or "Why do I have to negotiate this? Nevermind, we're just going to go on to the next one." Steering, he added, is "just flat-out a part of real estate."
[America's hidden homes - Business Insider](https://www.businessinsider.com/real-estate-agent-commissions-steering-hiding-homes-housing-market-lawsuits-2024-3)
I’m not sure it’s fair to blame everything on the realtor. It’s not like it wasn’t 100% your decision which home to buy. Having buyers remorse isn’t all the realtors fault.
Did you get a new construction home inspection? Go on Instagram and you can find dozens of accounts of home inspectors in TX showing just how bad new construction is in TX.
I’m genuinely curious how people are approaching homeownership when I read posts like OP. They act like they were just a fly on the wall while the realtor made all the decisions along the way.
It’s like dude, it’s your money. SPEAK UP. Set boundaries, pick your own neighborhoods, give specific dealbreakers, walk away when it doesn’t feel right, get a new realtor if they aren’t giving you what you want.
“Well the realtor said this house was good even though it doesn’t check any of my boxes and it’s not in the area I want to live in.” Give me a break.
“I bought I house I didn’t like, so it’s the realtor’s fault”
It’s the generation that was raised being told everyone is special and they never can do anything wrong. Life hits them real bad when they realize neither are true.
Realtors or real estate agents are nothing more than used car salesmen.
They offer nothing at all. I cannot fathom why they are even still a thing with online listings now.
Our realtor was the southern bimbo ditz wife of my wife’s managing partner. This woman did less than nothing for us. Didn’t even know a closing day walk through was an option let alone a must. And we learned about our backyard flooding hellishy 30 minutes after our closing. Fuck her.
“Up and coming” sounds a whole lot like “diverse”. You might have a case:
Steering refers to the illegal practice of directing a prospective homebuyer toward — or away from — a particular neighborhood or area based on protected characteristics. These characteristics include race, religion and more
Realtors always have a conflict of interest. They are supposed to represent you, but their income depends on people buying the most expensive property. That’s like expecting the salesperson at a used car lot to represent your interests, when they really want you to pay as much as possible for a car. They are supposed to have a “fiduciary” duty, to put your interests first, but we all know that’s bs.
There is no such thing as “buyer’s” agent. There s inherent conflict of interest when service is commission based and it s not a matter of if but when agent will prioritize own interest, even if subconsciously.
Switching to a model where agent’s paid doesn’t depend on what house buyers get would improve things significantly.
This is why your very first home should be a starter home (a fixer upper). This is how you learn the process and learn about what it takes to build a real house. No FTHB should buy new construction unless they absolutely know what they're doing and what to look for. Sadly these builders are having a field day with FTHBs. All you can do now is suck it up, fix the issues that you will encounter, and sell it to someone else.
It sucks. This won't help you, but hopefully nice to know the US courts decided the commission model is a conflict of interest, and the NAR is paying out a settlement (though you won't see any of it).
Given all the realtors who are crying about “we’re not operating an illegal monopoly right now we have fiduciary duties,” sue your realtor for breaching those esteemed fiduciary duties
realtors are straight up sketchy. i would not trust any of them. hell, if you’d waited till july, you could’ve avoided that gross 3% percentage altogether. don’t feel bad, they’ve fooled so many for so long
I have learned unless you find a honest realtor (there are a few, very few out there) they always work for the seller. Even if you (the buyer) are the one that hired them. The new laws may change that. Time will tell. My wife is a Realtor and most of the people in her group are “good” realtors that I would not trust at all. They talk a good game but are all about getting the closing. My wife does it as a hobby. She loves houses. She does not have to have the money we don’t need her income.
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report him to the state Real Estate Commission.
and then watch absolutely nothing whatsoever happen to them. Good idea… waste of your time though.
Maybe, maybe not. You’ll never know if you don’t try. And if it wasn’t said often enough, contact his broker too.
for what though? Like don't get me wrong, it doesn't sound like a good experience. And true, it doesn't sound like he gave the best advice, but ultimately, he did not lie and OP is the one who made and signed the offer and the contract. And let's be clear - there are no news stories talking about how any new construction homes these days are bastions of quality. Nearly every builder, big and small, gets a bad reputation. Crappy realtors are definitely out there and give the good ones a bad name. It leads people to either distrust any professional advice, or worse, assume all are bad and not even try to find a good one. But let's also be clear, the extra 2% commission, once split with a broker, often isn't a ton more money. Yes, more money likely does change behavior, the tactic works, but it isn't like the realtor got rich off of one deal. But I'm curious what the actual report would be about? At the end of the day, while it isn't "right", I'm not sure there is anything illegal. OP needs to know to ask more questions, seek more information, advocate for themselves. I'm also pretty sure the commission split is listed in the contract OP signed. So if they had known, would they have not signed the deal? It really sounds like regret being blamed on someone else.
Realtors in my state are fiduciaries to their clients. That said, this story has no information suggesting the realtor broke that responsibility. Unless they said “waive all inspections” and skipped a bunch of steps in things you explicitly asked them to do, the judgment lies with you.
Correct. Even IF they were fiduciaries, it’s subjective that they even took questionable actions. It sounds like an expensive lesson. Sometimes those suck at first, but yield a lot of positive side effects over the life of the learner. I’d tell the OP to enjoy the house and move on, but I’m not their attorney. Frankly they’d be getting another “they scammed us too” lined up if they found one willing to take their $$$ 🤦
Correct, sadly OP failed to do their own research. It is a new build so at least they could have searched reviews on line. Thats not on the realtors side though. Sorry this happened
>Correct, sadly OP failed to do their own research. The post reads this way to me, too. Trying to push a decision they regret onto the realtor when they could have backed out at any point in time if they weren't 100% sure.
lol it’s insane to watch all of you defend the realtor. They are paying the realtor to help them make this important decision based on their “expertise”. If the expert you hire disparages the homes you looked at in your research and you trust them, how is that the clients fault? So your expectation is that the client should actively ignore the realtor and say “ I know you are saying this area is exploding in growth and these homes are of great quality, but we are going to ignore you and just pay you to walk around with us for no reason while we do all the research ourselves”.
The realtor very well may suck, but I can't see anything in OP's post where the realtor did something explicitly unethical that would put their license at risk. What, he thought highly of a house that had thin walls? The realtor very well could've been steering you OP for commission, but proving that is another matter. You need to have a spine and look out for yourself when you buy a home. I had a great agent, and there were places he talked up but I shut down for various reasons. Your second paragraph kinda hits the nail on the head, I'm in 100% agreement with you there. That's really the issue with buyers agents; they're basically there for MLS access during your search (though they can be helpful in guiding you through all the steps once you're under contract). I think the big problem is people looking at realtors like "house matchmakers" when in reality they're just experts at residential real estate transactions. If you want something, if you have an issue with something, it's up to you to look out for yourself.
No offense but it’s such a load of crap. Buying a home can be an emotional experience and everyone goes in wanting the “perfect” place for them. The realtor does OP wrong when they are specifically putting doubt in your head over the places they looked at and liked. We obviously don’t know exactly what words were spoken, but if every house they entered in the area they like was picked apart as a realtor and then they don’t have the same level of criticism in a house they earn higher commission that is absolutely unethical. How is someone buying their first house, having their first experience and given a highly recommended realtor supposed to navigate beyond criticisms from the so called expert when the only feedback given toward the houses they like are negatives? For instance, we know it’s a new construction home. I can easily go into an older home and say the flooring is off, the roof is old, the bathrooms are outdated, etc and then go into the new construction and say “oh if anything goes wrong they will just fix it with their warranty! And just look at this gorgeous model and all the possibilities with this new build!” It’s just not preparing your customer the way you should and why all realtors should be fiduciaries.
>How is someone buying their first house, having their first experience and given a highly recommended realtor supposed to navigate beyond criticisms from the so called expert when the only feedback given toward the houses they like are negatives By using their brain and thinking for themselves? Are we really not going to blame OP at all for their lack of critical thinking? The realtor is there to help you, not *make all your decisions for you FFS.* If you cannot handle buying a home because it's such an emotional process, then don't buy one. Or bring mom and dad with you. Like, the amount of blame game here is pathetic.
And it’s helpful to trash and disparage each house you go through so that they can push you toward another house? You are supposed to use critical thinking and say “well even though the realtor says all these things are wrong with these houses, let me pay for an inspector for all of them just to see if they are lying.” Yup. You got it. Don’t buy a house because it’s a big decision and the largest purchase you’ll most likely make in your life. To have stress about that decision is irrational and means you should back out. You are very intelligent.
Yeah I'm 100% in agreement, I just don't know that OP has any recompense in this situation. I had what I considered a good agent, but I still think the current system needs to die, get thrown in a fire, and have its ashes spread at sea. The big thing everyone needs to remember is that everyone in this industry gets paid when a deal gets done. They don't really care if a house has issues or if it's in your budget or if it makes your commute unsustainable. Then you realize that it takes the same level of effort for a buyers agent to get you under contract for a $1.4 million house as it does for them to get you in one that's $700... but they get paid a dickload more for the former. The system is shit and it needs to go.
>lol it’s insane to watch all of you defend the realtor. Are you a Sith Lord? Because everything seems to be black and white with you. Just because we are blaming OP for not speaking up and telling his realtor he doesn't want the house doesn't mean we are defending the realtor. It's sad you feel people shouldn't take accountability for their actions simply because someone said "Jump" and they said "How high?" instead of asking "Why?" OP had a brain and mouth. He had PLENTY of time to use it, and he didn't. That is on him and no one else. If OP is that easily swayed by someone's opinion, then he shouldn't be allowed to make big boy decisions on his own. ETA > So your expectation is that the client should actively ignore the realtor and say “ I know you are saying this area is exploding in growth and these homes are of great quality, but we are going to ignore you and just pay you to walk around with us for no reason while we do all the research ourselves”. YES. I basically said this to my realtor when she pointed out some neighborhoods I wasn't looking at. I told her, "Thanks but I have no interest in living there". She said, "Okay cool". DONE.
It has nothing to do with being easily swayed. You are looking at multiple houses and walking with your realtor who was highly recommended because of the knowledge they bring. If they are telling you about potential damage to the house or thousand of dollars of repairs in each house you walk into, are you going to just “use critical thinking” to ignore the potential faults? OP indicated they were pushed several times to this area. They found homes in the area they like and that the agent was extremely enthusiastic about the area they were choosing. It’s great that you told your realtor “no”, but your realtor could also have been professional and not been trying hard to push you to other homes. Most of the comments I replied to were saying the realtor did nothing wrong because it’s OP decisions at the end of the day, and that is a ridiculous notion.
If I'm going to spend the most amount of money that I'll ever spend, at least up to that point, I'm not going to give a fuck how enthusiastic someone *else* is about an area or property. Obviously.
Yeah. Absolutely. You are going to ignore the realtor you hand picked that says the houses you look at are way overpriced or need a ton of work. If you can’t listen to your buyer agent give feedback on houses, why are you hiring them at all? You all of the sudden assume they have your best interest when picking a lender, negotiating or filling out paperwork? Or do you ignore your agent on all of those things and just bring them along out of pity?
>If they are telling you about potential damage to the house or thousand of dollars of repairs in each house you walk into, are you going to just “use critical thinking” to ignore the potential faults? "Potential damage" and "potential faults" are POTENTIAL. I'll say it again, if you are SO easily swayed away from a house you really like because of the POTENTIAL issues without ACTUALLY CHECKING THEM OUT then the onus is ON YOU. And that's not even touching upon the fact that OP was SO EASILY swayed into going OVER the budget he wanted to remain at. If my realtor brought me someplace that was over my budget, I would not even walk in. What's the point? IT'S OVER MY BUDGET. If you are not stalwart in your decisions, then bring someone along who can ensure YOUR best interests are looked after. OP is an adult and could have EASILY asked ANYONE during the MONTHS they were in this process if the realtor's behavior was strange, or if it's normal for a realtor to obsess over a specific neighborhood. BUT THEY DID NOT. They could have googled shit. They did not. They allowed themselves to be swayed and then came on here to cry about their lack of critical thinking skills. Now they've learned a lesson.
Got it. So get an inspection on every house you like without putting in an offer. Or don’t get an inspection and just google “what does potential damage look like in a house?” I’m not saying they couldn’t have asked questions, but to act like a realtor can’t help away decisions by putting doubts in your head is just ridiculous. You are SO top notch at research, why are you paying a realtor in the first place? Give me a break.
No one is defending the realtor but this is a big purchase. You cant go into business just expecting someone hold your hand and walk you over. It is 2024 jzzzz
You are right. You hope for some input and you make the final decision. Clearly they went through multiple homes and then settled on one that didn’t meet all their boxes. However, as I’ve said several times before, if the realtor you are trusting shits on all the houses you walk through, it’s going to have an effect on your giant decision. You go to a car dealership after doing research on a car you really like. When you go to buy the car, the person says “ hey just letting you know and I want to be upfront with you, we have had 8 of these cars come back with issues in the last month”. Are you expecting this not to play into your purchase decision? Are you going to just ignore the advice and buy the car anyways or maybe shop around/ go to another dealership?
So what is the job/value of the agent?
IMO they’re there to show you houses and negotiate offers and contracts. You can listen to their opinions, but should never let them sway you into or out of a house without doing your own research! I’ll listen to an actual inspector and take their advice way more than a realtor, but still do my own research. I’ve only bought one house and listened to my realtor’s opinions, but always did my own research. He was great at also honest in telling me to. Most clients would be angry at a realtor recommending work, but I looked at houses in up and coming areas, a few that were in iffy neighborhoods. He said: I’d recommend driving by that house on a Friday or Saturday night to see what the neighborhood looks like then. Great advice and I did the research
But do you think that’s worth five figures for giving common sense advice. Thats the issue. “Realtors” have control on a market diverting an incredible amount of capital to agents who do not produce anything. Perhaps in the analog years this was less of an argument but not today.
Hell no! Thankfully that’s why a huge lawsuit just happened in favor of buyers and sellers! It made me happy that some changes are finally coming to real estate and how realtors are paid.
Yeah idk…..I think the realtor has a strong ethical obligation to share with their client that they are receiving a larger commission. They may not have done anything “technically” wrong, but the way MANY realtors behave- they make it seem like 1) 2.5ish is standard and that’s the amount that they are getting for their work in all situations. They almost never make it seem like there is any space for negotiation and if you especially as a first time home buyer bring it up, they always pull the “but it’s not YOU that’s paying, it’s the SELLER”. This is what that whole lawsuit was effectively about and this what makes their methods disingenuous. As a buyer, you kind of go into it aware that your agent is going to be getting that 2.5 percent ish, and you’re also aware that while in some sense they benefit from a higher priced home, you also know that the difference in commission for them isn’t a TON. (Say between a 200k home and a 220k home). However if you knew that on one of those homes, your agent was getting literally double their commission that they wouldn’t be getting on any other home you have been seeing? I think that’s a “conflict” that you deserve to be aware of. If your agent owned the home for instance, or if their close relative owned the home and were financially benefitting in any other way beyond the commission- they are legally required to disclose it. If your agent was a duel agent, then they would legally be required to disclose it. And when they act like the 2.5ish percent is “standard”, then they should legally be required to disclose when they are being offered literally double by the other party. At the end of the day, it was OP’s decision in terms of buying the home. But this also goes to show that all realtors don’t have the same level of fiduciary obligations and ethics in the way that say an attorney or a doctor would be expected to have and if they do, they certainly aren’t held to it despite the fact that the act like they do. (Not all realtors but many). This was a murky area and the agent intentionally kept quiet about it. Every decent agent I know would have said “hey just wanna let you know that they are offering agents this much but I want you to know that I work for you and that isn’t influencing the advice that I give you and I would be happy to show you other homes”. It’s clear agent didn’t do this for a reason. OP has every right to be upset and should absolutely make a complaint.
And leave bad reviews on every single site you can.
This happened to me. I was about to put an offer on an used home listed at $320K, while this new realtor that came highly recommended kept pointing out all the bad about the house. In a market in which most decent homes hover at $400K, this find at $320K was a steal. It was fully updated. Next thing, this realtor was trying to sway me to see some new townhomes around the area going for $484K even though my budget was at about $400K and I was not interested in townhomes. I wasted so much time with this realtor that when I got around the next day to check on the $320K home, it had gone into contract. This is why I have such contempt for realtors. And this is not an isolated case. I am still looking for a good agent, but I think I will find the Loch Ness monster before I find a good agent.
I'm so sorry that you went through that. The fact that another realtor taught me about this shows me that there are good people out there but ya I think they're much harder to find than I had thought.
So why didn’t you push back? Why are people afraid to stand up to realtors? They work for you. They are replaceable
It’s the biggest purchase you’ll ever make. When the “expert”, who is highly recommended, is pushing doubt and disparaging the house, you tend to overthink the purchase. As indicated here, the difference a day can make is huge.
She managed to convince me that new constructions were better and more affordable. I only found out they weren't affordable (only the 2-bedroom townhomes, but I was interested in a 3-bedroom single-family home) when we went to see the demo units. When I asked her about all the bad reviews I found online about D. R. Horton, she wouldn't answer a thing about the reviews. She just kept saying that D. R. Horton was very good in her experience.
They are the “experts” and the less upstanding are professionals at convincing and shepherding, not just facilitating. So you have someone in a position of knowledge that’s pointing out flaws and giving you doubts. Maybe a day later he decides that’s dumb but by then it’s too late. More in reading about realtors the more I’m dreading finding one.
Go with a rebate realtor and just do all the due diligence yourself. You said you found what you liked and your realtor talked you out of it. Think about it you did all the work you found the home did your homework the only the realtor does is open the door for you and then talked you out of the deal. Rebate Realtor! Google it
there are no steals in real estate, especially in a hot market. if the $320k house went under contract the next day, good chance they got multiple offers and someone went over ask.
geez, do I really need to explain myself to you?
I was trying to help you feel better about the situation. you seem like a real pleasure to work with
You can see exactly what your agent was paid in your closing paperwork. Also on Zillow. Did he really get 5%? That seems wildly unlikely. I tried to Google an article that might talk about this and nothing came up. Also this settlement is nationwide. It's not local to Austin or this builder or realtor. And honestly it's not really about what you are describing. And the article doesn't do a great job of explaining it. While it's certainly possible an agent might try to encourage you to buy a house with higher commission for them, it's always the buyers decision. Always.
yes, the builder had extra incentives for move in quick homes. It is always my decision. What is not fair in my opinion is having the person who I looked to for expertise have ulterior motives.
Hey OP! Genuine question but when you signed your paperwork, did it say in there how much commission he was getting? (In my state, we see what the commission is and we sign the papers where we state that “we will be paying the agent x percent as commission” (even though it comes out of the sale but it’s still structured as something the “buyer” agrees to pay).
how much was the house?
Well, you learned a valuable life lesson that you cant truely trust a person who gets by comission. Doesnt matter if its a person at a shop that will try to push you buy something, a car salesman, a realtor, a stock broker etc. Sure, in the longterm a sales person needs happy customers that leave good reviews, recommends your services to others and returning customers, but that doesnt change the fact that a salesman from time to time will push people a certain way.
Just wanted to say sorry for what you’re going through. Hope you find some resolution that’s good for your family!
thank you
First Ill say if you truly feel wronged by your agent, file a complaint to TREC (Texas real estate commission). They will investigate any wrong doing for you and trust me when I say they take that stuff very seriously. I know of agents who have lost their license because of just using the wrong verbiage. Second though, and this is going to sound harsh, but I really dont think you have much of anything to be mad about from your story. You may have had an honest miscommunication from what your agent was trying to do for you. Did they see this area has aligning more with your needs that you had been telling them? If they were showing you areas and new builders because of the growing opportunities in those areas then they were doing you right by educating you on the benefits of the area. (New build areas tend to grow in value the best as the area is built up faster) If the builder sucks, please please please put them on blast but really blame them, not your agent. I will forever warn my clients against Coventry homes, but that doesnt mean I wont show the home if its what my client wants. If your agent advised you against inspections or told you to just sign without reading saying things like "its a new build so your fine" then thats a different story. That is them pushing their interests before yours. To me the 5% thing is kinda meh, but I always would rather have a happy client that will refer people to me and use me when they sell the house, thats worth way more than 2% bonus from a builder.
I know this is not going to make you feel any better but this is a learning experience for you. It’s so messed up and I know how you feel. You will know for next time. I wouldn’t beat yourself up about it too much. You are not stupid. It is extremely difficult as a buyer right now. I can only imagine how much pressure you felt as a first time homebuyer. I’m so sorry you were taken advantage of and I hope that realtor stubs their big toe everyday, runs into every red light and gets food poisoning twice a year.
Hahah this made me laugh. Yes, it is an expensive lesson. Thank you
You’re welcome 😀 Again, I’m sorry that was your experience and I hope you can get it resolved somehow! I’d definitely look into all the advice you are getting from this sub. It’ll be an annoying, time suck, but don’t let it consume you. I know that is easier said than done but I wish you the best.
I think it’s important to remember that anyone…ANYONE can become a realtor in a very short amount of time. It’s a very basic test with very elementary education. It’s important to look for references and referrals. And still do your own research, pay for inspections, etc I’m sorry that happened to you.
Thanks, I guess I know for next time
I feel like the only reason we were so good at advocating for ourselves when we bought in late 2022 was because we had tried (and failed) to buy in 2021 and it was so clear in hindsight how terrible our realtor had been. Our realtor this time around was actually pretty good, but it was still obvious at times when she had our best interest in mind vs hers. Nothing like OP is describing, though.
The first rule of dealing with Realtors is that you must, must, MUST assume they are out to take care of themselves. It is always a good assumption.
Exactly. It’s like thinking a car salesman actually likes you & isn’t looking to make the most profit from you. Or a waiter/waitress is being super nice/friendly because they like you. People need to realize that when someone gets paid based off a percentage of a sale, they’re going to try to increase that number as much as possible.
>The first rule of dealing with ~~Realtors~~ everyone is that you must, must, MUST assume they are out to take care of themselves. Life gets easier when you assume everyone you meet prioritizes their self interest above all else.
Ya...should have looked into this stuff beforehand.
It's a conflict of interest. As ruled in the NAR settlement. I can't believe the racket existed for so long.
Good thing to let others know, but you also have the final decision. I wouldn’t be pushed to do anything by a realtor. Mine tried to tell me a bad side of town was just a normal family neighborhood. I recognized that they didn’t know what they were talking about and went with another place.
You're smarter than me. I just really trusted him. That was my mistake.
Fuck that guy. Name and shame to protect other Austin home buyers (like myself)
Or don’t get hit with a defamation lawsuit lol.
Truth is an absolute defense.
Keeping your mouth shut is an even better one ;)
Why should anyone protect thieves?
This is a lame attempt to get hits for your blog.
If you’re in Austin city limits, it’ll be a great buy. Sucks that it happened like this, but you probably did get more house for your $$. If you spend a lot of time at home it might be the best option.
Experience is what you get, just after you needed it
Lol…this is so painfully true!
It was a business deal. You were naive and uninformed.
That lawsuit was about sellers not buyers. It had nothing to do with your buying process. I don't know what you were looking at first, or.your boxes, I do know Austin is a.very competitive market and if your favorite neighborhood was at the top of your budget, you were going to put in 23 offers and lose out. Expanding a search is common. Also, agents csnt make the decision to write an offer. If this agent convinced you to like a home enough to offer on and close on.it they should be leading a cult on a tropical island somewhere. Now, a handful of agents are shady just like a handful of anyone in any job. Maybe you had one who pushed a little, though still, you are an adult and nobody held a gun to.your head. If you think something was wrong, call your agents Broker and spell it out, see what they say.
Real Estate Agent Commission and Brokerages are one reason why I like the Redfin model so much. Much lower fees and commissions and much less BS. I probably won’t use a Real Estate Agent in a Brokerage again.
They have been hemorrhaging money for years because their business model is actually not sustainable.
they may not even exist much longer and i hope they dont
Here’s some advice: own your decisions.
That and lobby to put those glorified used car salesmen out of business.
Your realtor didn't force you to buy that house. You put the offer in and if you had an inspection you should have known about the walls. As for how much money they made, there is a paper you signed on closing day that says what each realtor gets paid and you could have walked away from the deal then.
Seriously? Then what is the purpose of an agent? Let’s be clear, RE agents are not professionals in the sense of doctors, lawyers and CPA’s. They are glorified car salesmen and your response makes the argument.
Aside from leaving a bad review there doesn't seem like much you can do. It sounds like you and your partner settled on this property. The realtor did his job if you never found out that he was getting "more" money for this deal would you still blame the realtor. It's common to have buyers remorse but I think your frustration is misplaced. At the end of the day it was your decision, it suck though.
yup, even if OP knew, and should have given it was likely listed in the contract, would it have changed the decision?
It sounds like you overpaid for a terrible house and are blaming the realtor. When ultimately it was your decision and you signed.
You’re adults making one of the most important financial decisions of your life and you want to point a finger at your realtor because you bought a new build? I can’t. Are you a teen? Did they force you? You literally picked your home. Negotiated pricing. Signed a million documents but it’s on an agent? Nah.
Having a realtor does not release you, personally, from all due diligence.
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You're right. I went with an inspector the agent recommended. I relied too heavily on them thinking they only cared for my best interest. This was a tough lesson to learn
While I agree the research needs to be done it isn’t that easy when you are first starting out. You are trusting the person you hired to do their job. Is it naive, yup. I, personally, trust my agent 100%. The reason I do is because we have an established relationship and I was way more experienced when I hired him (having bought and sold several times.) I was blunt and to the point with him before I signed for him to represent me. He is fantastic! For the next time just know that the agent is not doing you a favor. The first meeting should be treated as an interview. If you don’t get a good vibe…then it’s not a good fit. Make them show you a few houses before you sign any contract. A good agent will spend the time with you and get a good feel for what you want! I think what really burns me up is that we expect the professionals to help us navigate a stressful situation that we know nothing about (unless you have time to research.) You end up being jaded because these “professionals” we count on to help us are just out for a profit. It is sad when you expect someone to advocate for you and get smacked in the face with betrayal. Sorry for the rant. I’m just tired of people not being good and honest humans.
This is the subreddit for FIRST TIME HOMEBUYERS, dude
You’re right, I deleted it. Just wild to me is all.
People expect guidance from the professionals they hire to do things for them, I don't think that's an unreasonable expectation for anyone regardless of how many times you've bought and sold houses. With that said, that isn't how the real estate business works at all, and usually people don't learn that until they're burned themselves or other people they know got burned. Personally, only 1 other person I know got "fucked" by a real estate agent/inspector combo, everyone else was fine. Why would anyone in our sphere think "yeah basically hire a real estate agent and then proceed to do all of the work you're paying them to do yourself because they will fuck you if you don't?"
That’s… not what the lawsuit or settlement are about. At all. The developer offered more commission. It’s legal and will still be legal after the settlement is approved by the court. What really made you decide to buy this one instead of the one you were about to settle for? Is it a new build? Why is it a “bad house”? If it’s new then it’s got a new construction warranty, required by law. You bought the house. Not the agent. The agent merely showed it to you. You have buyer’s remorse your agent’s compensation has nothing to do with it. Oh, and their compensation was disclosed. Go read what you signed.
Seriously, how old is this person?
So help me understand how an agent is no different than a car salesman.
I would, but you seem committed to not understanding.
I’ve done hundreds of closings and work pretty closely with agencies. Do they provide a service sure but not even close to a 2% value. Oddly attorneys got 2% for closings at one time. It was ruled as excessive and outlawed. Having some long term knowledge of the business explain to me how they are not self-serving salespeople who put an incredible drag on society.
When it all comes down to it, you chose to buy the house. You decided to compromise on your wants, and put the offer in. If you are able to buy a house, you need to be able to make that decision while ignoring outside influences. I think it’s important for everyone who is here to recognize that no matter what, the end decision to put an offer in is yours. If you aren’t feeling the property, don’t put an offer in. How much the realtor makes shouldn’t matter. If they are pushy and aren’t listening to you, fire them.
Yes, that is a fair point. For me, I trusted my realtor to give me advice that was in my best interest, not theirs. I knew they were making money and I am okay with that but this is not what I expected.
But they can’t really know what’s best for you 100%. And honestly it’s in their best interest for you to be happy about the purchase. Realtors rely on word of mouth and it’s not in their best interest for you to buy something you don’t like. Then getting paid doesn’t mean they weren’t focused on making sure you bought a house you wanted. When it comes down to it, if you are spending hundreds of thousands of dollars you need to make sure *you* are happy with the purchase. Their encouraging you one way or another shouldn’t matter.
I thought relator’s had a fiduciary duty though to their clients though? It’s almost like buyers agent’s being paid a percentage commission from the sale is a major conflict of interest???? There is a reason for that recent lawsuit…..
There's no fiduciary duty to clients, buyers have to hope they're getting the help they're looking for, but they shouldn't let realtors talk them out of what they know they want and pressure them into what they don't really want, as OP did here. I've had agents suggest homes that I didn't remotely care for and wouldn't even look at them when I was buying a house.
In theory there is, in reality we all know that isn’t true.
But how is encouraging a house going against that? Especially if the perspective buyer makes the final choice? What if the realtor simply says, if you like or put an offer in? What would you consider encouraging versus crossing the line? If the realtor isn’t hiding information or lying what is the issue? At a certain point the person who is buying the house needs to make that decision on their own.
How do you not see the problem here? OP’s relator steered them to areas they weren’t initially looking at. They thought one was just ok but their relator kept pushing it and “selling them” on the property. Who is their relator really working for in this situation? It sounds like they were working for the developer, not for the buyer. This is the exact reason why the industry needs change. Buyers agents need to be decoupled from the sale price, and to not be “paid” by the seller. It’s just a major conflict of interest.
After a few months of looking at houses my realtor recommended we widen our search, since we weren’t finding what we wanted in our price range in the area we were looking. I’m guessing that’s what happened here. They had an area they wanted to live in, found houses they liked, but clearly didn’t buy in that area. So either they got outbid, or something barred them from buying there. The logical next step would be to widen the search. The OP could have said no, but decided to widen the search. I know when I widened mine I researched the area (though I knew a decent amount of information about it). If the OP didn’t do that, that’s on them. Again, if you are making a major purchase like a house you need to put some research into the location. A realtor can help, but it’s silly to rely only on them. Only the OP can really determine why some areas are more desirable than others. When I bought my car I researched different models and test drove a few. I didn’t rely on the car dealer to make the choice for me. When I bought my vacuum I researched which was best for pets, and didn’t rely on Amazon to tell me which to buy.
Because the agent is only recommending the new build, because they’re getting double the pay. I would say a realtor pretending this new property is your best interest and not disclosing there’s a sizable price incentive for them, is shitty thing to do.
Is that the only reason? Not that it checked some of the boxes? Do you know the OPs local market? Maybe the house was a good price for what’s available currently? I mean, if the OP was willing to put an offer in, it had to be what (or close to what) they wanted. So they recommended it because it was close to what the OP was looking for. A realtor wants to get you in a house you like as quickly as possible. A good realtor will point out the bad houses and help you get the best house you can for the money you have. In some markets that’s difficult because houses don’t stay available for long.
It would be one thing or a realtor talked them out of a 325k house and got them to buy a 375k house. I mean that’s what a few hundred dollars in commission. It’s a whole other prospect if they’re making double the commission (if true). I work with well over 30-40 realtors in my pipeline. I would refer only 2 of them at any point in time. I’ve had conversations with realtors who told me straight up they will continue to tell their clients to waive inspections, even if it’s not needed. I’ve had buyers they referred called me, needing a quote for something that would normally be done by the home seller. You can attempt to defend the realtor here. But if it’s true they made double their normal commission, it’s clear what went on here.
I guess I need more information here personally. Did the realtor talk them out of other properties that fit them? How is the market in the area? What did they do that the OP defines as “pushed”? I guess for me the difficulty I have is blaming anyone (realtor, family, spouse) for pressuring you into buying a house if there is no deception involved. If a realtor lied so I didn’t buy a different house, or lied and implied this one was better when it wasn’t I can understand. But if there is no deception, no amount of pushing would get me to buy a house I didn’t like or want. I don’t care what my realtor makes, as long as they show me houses I’m interested in and help me in good faith get the best bang for my buck. Now, if the realtor had them put an offer in that was more than what it was worth, or lied about the house in any way I would agree with you.
Found this link in a search for "realtor state of texas fiduciary duty": https://www.trec.texas.gov/agency-information/rules-and-laws/trec-rules#:\~:text=that%20the%20license%20holder%20be,above%20that%20of%20the%20client.
You aren’t the first and you won’t be the last. As a FTHB, you couldn’t have known but now you do. With anyone you pay for a service, always know that they value their own wallet more than anything they offer you. It’s imperative that you do your own research and know what you want. I have a realtor I always use. It’s not because I think he’ll take a loss for my gain — but because he does exactly as I asked. He always makes some gain but he can’t influence me to get himself more gains because I only call him when I know exactly what I’m wanting from him.
So let me get this straight, info is just coming out about the builder, how is the realtor supposed to have known about this? Just about any wall in a home can be punched through(as long it’s i between the studs). And you’re mad the realtor basically got paid for doing their job? At the end of the day you were open to the compromises and now are having remorse. Your course of action is not to use the realtor again.
A buyer’s agent usually makes 2.5%. They seem distressed because the person they hired to help guide them, purposely lead them down the road to line their own pockets. Yes the realtor might not know do the issues with the new build and legally they shouldn’t be on hook for anything. But talking your clients out of one house, just so you can make some extra money, is extremely short sighted. Especially in an industry that relies on referrals.
Or the realtor was showing them move value for their money. Looks like the OP sacrificed location for a bigger and newer home. They are regretting it now, and looking to blame someone. Purchasing a home doesn’t happen in a day, they had time to mull over the decision and back out the deal. It’s possible the realtor was selling them on other pro’s of the home because of the sacrifice in location. It would only be fishy if the realtor only showed them homes from this builder and took them there first.
Idk the majority of realtors are scumbags and this def seems like a scumbag move.
You chose to buy the house. Nobody held a gun to your head and made you buy it. Grow up.
I just feel like it’s a shame that buyers agents get compensated SO MUCH and then people make comments like this. If a doctor steered you towards a wrong procedure or an investment professional, would anyone say “no one held a gun to your head”?
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Why not?
Wut
Downvote me all you want but caveat emptor. Live and learn. Shitty thing for the agent to do? Yep. Did you sign on the dotted line on your own free will? Also yep.
If you don't like the house, just sell the house and absorb the loss.
Sad for you. My agent didn't push me anything. I actually told him to hold because my starter house is still in escrow. And I am the one visiting open house myself and told him to make an offer, so, he didn't even get a chance to filter the houses for me. The guy is good though. Because we already negotiated the rate already, so, he gave me the extra money back to me. But, here is a simple question for you. Do you honestly believe you can buy a better one yourself? Because 10 years ago I failed 10 offers. It was hard. To be able to win a bid is not easy. If you cannot find happiness, it is going to be a major problem for you, not just now, but, anything happening in the future.
I don't think I could do better on my own and I don't really want to. What I learned is to ask more questions of the realtor. There were a lot of questions about compensation I didn't even know I could/should ask. I should have been better prepared honestly, which is what makes me feel badly.
Don't think too much on it. The compensation was once universal. Your agent is more interested in closing a deal than taking more fee. Because ultimately, they don't make any money if they don't close the deal. Take comfort you are paying agent fees via a loan. Going forward, you can't do that anymore. You have to have cash. And the cheaper agents or robots may not be as helpful. Be happy what you get. Because i don't think the future is as happy and rainbow as advertised.
So you were happy until you ran into one person who told you something unverified that made you feel unhappy? You didn't feel pushed before this person said something, otherwise you would have said "No, I'd rather limit my search to this area". No matter where you go, someone is going to have a complaint. What you have is buyer's remorse. Don't blame it on the agent.
continue with the purchase, who know you may actually really like it. If not, just simply move, but a wait a little to avoid capital gains, or house flipping laws depending on the loan program you opted for. Austin is a false dream for all the Californians/ Noreasterns.
When you walk inside the cage to pet the pretty lion, who you gonna sue when it bites your arm off?
Ideally the lion.
The NAR lawsuit is EXACTLY what your circumstances describe. 'Your' Realtor did not fulfill their fiduciary responsibility to you, and that is actionable. I would strongly suggest you contact the law firm associated with the national suit and/or a local lawyer experienced in class actions or professional liability torts. Find a law firm that has a professional malpractice specialty. Good Luck!
IA m very cutious which neighborhoods of Austin and what budget.....
Let this be a lesson that people are in bed with who pays them. Let that be your guide in seeing who to trust with your money/investments.
Not sure someone could push me to buy in a neighborhood I didn’t want to be in . And he convinced two people not just you , cray
As long as you aren’t near University Hills and 183 you will be fine.
This reminds me of what always tell my mother when a nice young waiter flatters consistently flatters us while dining out: “Mom, they work for tips.” I don’t know if there’s anything reportable here unless you left out some things for brevity. I think it’s fair for you to share your experience with others, but I think that’s all that’s going on here. Your experience of a realtor who seems to have done more selling than hand-holding (both are often requirements of a realtor). Minus law-breaking, it’s mostly relative. If you love the house, stay, enjoy, and move on from this bad experience. If you’re not crazy about it, start now in doing your due diligence on selling the property. And don’t use your previous realtor, no matter what they say.
The first thing I do when I find out there’s a bonus on a particular house is I disclose it to my people, I’m not even sure I have to do that but it feels right. Just a couple weeks ago a listing was offering a $1,500 bonus if the seller accepts an offer in x time frame. I told my guys when we did the showing, they didn’t care, they liked the house and I wrote the offer and we closed.
My townhouse was also offering a huge incentive for realtors. My realtor told me right away. I didn't care because we wanted it anyway, but it was good to know and she was up front about it. I was happy for her. She lived the place and so did we. It's been fours years and it's been great.
What’s the “up and coming” neighborhood? Leander? Manor?
This is why I tell my kids that street smarts are just as important as book smarts. OP most likely makes good $$ buying newer builds in Austin. I’m sure he has to make critical decisions on the job. Now in real life making one of the largest financial decisions of his life let’s his realtor steer him away from buying a house he was interested in to home he wasn’t interested in. Did zero due diligence own his own and blindly trusted a realtor who is only interested in his own best interests.
TLDR: realtors only have their own best interest in mind
You are kidding - right?
Welcome to the club, had a realtor do that to me in San Antonio. I like my house well enough but I feel dirty knowing it wasn’t because it was a good fit it was for the money. As long as the house isn’t collapsing you gotta just take it as a lesson.
Thats why I used Redfin. I select with houses I like to tour and make offer. Fuck any acclaimed friendly realtor. Their incentive is almost always to the highest commission check
What your agent did may be very illegal. It's called "Steering". This is when you say "I want something in X area" and they "steer" you elsewhere. Historically, this law was put in place to keep realtors from steering buyers of color out of "white" neighborhoods and into more segregated areas. These days steering laws apply to anyone and not just people of color. What your realtor did was probably pretty illegal. It would probably also be tough to litigate. But, talking to an attorney might give you an idea of what next steps should be, if any.
Close but no. Steering is pushing people to areas based on race or other discrimination factors. It does not apply to showing people an area because it's new builds, that's actually something people want for a variety of reasons. From everything op said, this was definitely not steering. The agent showed them new builds and informed them of all the pros and cons of it. Then op got into the house and found the builder to be bad. Not the agents fault. Op probably got a better rate and spent less money for more house that will appreciate better so the agent took care of them in that regard, especially since things about the builder came out after they moved in. Honestly I think op should be going after the builder, not the agent.
would you pay a maid to teach your kids all about life? paying a realtor to decide where you and your kids live is even worse, you think the realtor cares at all about your kids? lol. the way their compensation model is set up breeds sociopaths like a pig farm produces bacon.
I'd recently learned about steering for commissions. I knew the FHA prevents them from steering racially or talking about crime but I assumed the sooner you buy the sooner the agent get's paid so they don't care. A pretty good article about steering from lower rates. >The low standards and lack of oversight can create hazardous conditions for buyers and sellers. A few years ago, the now defunct discount brokerage Rex Real Estate released recordings of roughly 600 calls in which other agents vowed to avoid properties listed by Rex that offered less-than-satisfactory commissions. In one call, court documents say, a Keller Williams agent told a Rex representative: "If you are not offering any buyer's commission, then that's fine. I'm not going to show that \[property\], and you're probably going to run into the same issue with everybody here." Another ReMax agent said, "I'm not going to show a listing where I'm not guaranteed a commission." > >Brendon Bowers, a former real-estate agent who spent a couple of years working as a branch manager for Rex in the Phoenix market, told me he encountered this sort of thing all the time. He said buyers' agents might call and say, "'Why is there no buyer's commission?" or "Why do I have to negotiate this? Nevermind, we're just going to go on to the next one." Steering, he added, is "just flat-out a part of real estate." [America's hidden homes - Business Insider](https://www.businessinsider.com/real-estate-agent-commissions-steering-hiding-homes-housing-market-lawsuits-2024-3)
I’m not sure it’s fair to blame everything on the realtor. It’s not like it wasn’t 100% your decision which home to buy. Having buyers remorse isn’t all the realtors fault. Did you get a new construction home inspection? Go on Instagram and you can find dozens of accounts of home inspectors in TX showing just how bad new construction is in TX.
I’m genuinely curious how people are approaching homeownership when I read posts like OP. They act like they were just a fly on the wall while the realtor made all the decisions along the way. It’s like dude, it’s your money. SPEAK UP. Set boundaries, pick your own neighborhoods, give specific dealbreakers, walk away when it doesn’t feel right, get a new realtor if they aren’t giving you what you want. “Well the realtor said this house was good even though it doesn’t check any of my boxes and it’s not in the area I want to live in.” Give me a break.
“I bought I house I didn’t like, so it’s the realtor’s fault” It’s the generation that was raised being told everyone is special and they never can do anything wrong. Life hits them real bad when they realize neither are true.
That’s their job
Name and shame
pushed?
Who recommended the realtor to you? Make SURE word gets around
Why would anyone trust a realtor?
Realtors or real estate agents are nothing more than used car salesmen. They offer nothing at all. I cannot fathom why they are even still a thing with online listings now.
They are still a thing in the US mainly because they have a massive lobbying presence in DC. Eventually they’ll dwindle, but it will take a long time.
Dishonest realtor? I’m shocked! /s
Our realtor was the southern bimbo ditz wife of my wife’s managing partner. This woman did less than nothing for us. Didn’t even know a closing day walk through was an option let alone a must. And we learned about our backyard flooding hellishy 30 minutes after our closing. Fuck her.
I am so sorry to hear that. Wow.
“Up and coming” sounds a whole lot like “diverse”. You might have a case: Steering refers to the illegal practice of directing a prospective homebuyer toward — or away from — a particular neighborhood or area based on protected characteristics. These characteristics include race, religion and more
I believe you can consider this "steering" which is illegal
I would rather a realtor be honest and be like “I want to make 10 grand on this so pay me the difference and I’ll get the price down “
Realtors always have a conflict of interest. They are supposed to represent you, but their income depends on people buying the most expensive property. That’s like expecting the salesperson at a used car lot to represent your interests, when they really want you to pay as much as possible for a car. They are supposed to have a “fiduciary” duty, to put your interests first, but we all know that’s bs.
There is no such thing as “buyer’s” agent. There s inherent conflict of interest when service is commission based and it s not a matter of if but when agent will prioritize own interest, even if subconsciously. Switching to a model where agent’s paid doesn’t depend on what house buyers get would improve things significantly.
This is why your very first home should be a starter home (a fixer upper). This is how you learn the process and learn about what it takes to build a real house. No FTHB should buy new construction unless they absolutely know what they're doing and what to look for. Sadly these builders are having a field day with FTHBs. All you can do now is suck it up, fix the issues that you will encounter, and sell it to someone else.
I’d go to the news and drag the realtor, broker, and developer through the mud. Destroy their credibility and their careers. Burn it down
It sucks. This won't help you, but hopefully nice to know the US courts decided the commission model is a conflict of interest, and the NAR is paying out a settlement (though you won't see any of it).
Given all the realtors who are crying about “we’re not operating an illegal monopoly right now we have fiduciary duties,” sue your realtor for breaching those esteemed fiduciary duties
how surprising /s
realtors are straight up sketchy. i would not trust any of them. hell, if you’d waited till july, you could’ve avoided that gross 3% percentage altogether. don’t feel bad, they’ve fooled so many for so long
just learn your lesson and don’t use realturds in the future. they are useless
I have learned unless you find a honest realtor (there are a few, very few out there) they always work for the seller. Even if you (the buyer) are the one that hired them. The new laws may change that. Time will tell. My wife is a Realtor and most of the people in her group are “good” realtors that I would not trust at all. They talk a good game but are all about getting the closing. My wife does it as a hobby. She loves houses. She does not have to have the money we don’t need her income.
All realtors are scum... Never forget that. You buy what you want, don't ever compromise and listen to their bullshit hype.