Simple answer NO.
Surprised a Realtor told you that you do NOT need their services? I know this may seem odd and a bit confusing a real estate agent in Shakopee said you may not need a Shakopee realtor, but you as a buyer do have a choice to use someone or not.
Obviously I as a Shakopee realtor I do find it advantagous to use a real estate agent, but I do so for the following reasons:
1) Commission is Paid by the Seller. Typically the majority of the real estate commission is paid by the seller. In the state of Minnesota often times the total commission is split between both Realtors. Typically 55% of the total real estate commission going to the Realtor who has the home listed, and then 45% of the total real estate commission going to the Realtor who represents the buyer. Often the only real estate commission that is paid by the buyer is a broker administrative commission. That commission is part of the closing costs and generally around $375. It is a fee you can have the seller pay as part of seller paid loan costs.
2) Market Knowledge. I beleive if you select a good real estate agent they will have the knowledge of the area. I see this often with buyers and sellers. You can tell when a Realtor who is not familiar with the Shakopee real estate market. They come in price homes incridibly high and those homes will sit on the market. Make sure when you have a free market analysis the agent does not just give you a price you want to hear, but backs that price up with homes that have sold recently,within the last 4 months. That also goes if you think they are pricing the home low, make them show you the comparable sales. A Shakopee realtor should be able to give you a value within 24 hours and may not even need to go to your home to give you a ballpark idea on price if they know the area well enough.
3) Contracts, contracts, contracts. No, a real estate contract is not the hardest document to disect, but having a Realtor who knows how to structure the contract to present your offer in the best light can be very helpful. Knowing the contingencies, how they are structured, timelines, how to negotie them can be very valuable.
4) Negotiations. I think many Realtors try to play the we offer A, you counter with C, and then we will meet in the middle at B. All negotiations do not have to go this way, otherwise you could easier do it yourself. One reason in my opinion to have a Realtor is to take out the emotion of buying a Shakopee home. Sure buying a house is one of the biggest decisin you can make and emtions run high, especially in multiple offers. We are seeing many mutltiple offer senarios with bank owned homes in Shakopee and knowing what banks are looking for and how to structure your offer can be crucial. I just heard of one accepted offer an agent in our office had that was only $200 higher than the offer that was accepted. Really $200? That was the difference between getting a home that sold over $125,000 more only a few years ago! Make sure you have a real estate agent in Shakopee who can structure your offer optimally.
5) Prelist Inventory. I can literally find out information on hundreds of homes for sale in Shakopee with networking with agents in my local office. Re/Max Advantage Plus is one of the top listing brokers in the state for bank owned homes.
6) Do You Want Representation? In my opinion this is the biggest reason to hire your own Shakopee Realtor. If you are going from open house to open house or call the agent on the signs, those agent represent the best interests of the seller. That’s right; those agent priming you for data are representing the seller and will use that infomation against you if you are trying to negotiate on the home they are standing in. If they ultimaely decide to represent you too, then you are in a dual agency representation senario in which the realtor almost needs to stay neutral.
Hopefully you found this information helpful and if you want any information on a Shakopee Realtor, I do not require my clients to sign buyer contracts with me until you are either comfortable or we eventually write an offer. I look at the process as I would, and if I were to buy a home I would not sign anything with anyone until i knew how they worked and if I knew they were going to do a great job.