Do You Need a Realtor to Buy a House in Seattle?

This article was originally written on July 15, 2021 and updated on May 29, 2024.

To determine whether you truly need a realtor to buy a home in Seattle, you have to consider what "need" really means.

In Washington State, potential homebuyers aren't obligated to use real estate agents to buy properties. Despite the legal freedom to buy a house without a realtor, the value provided by a knowledgeable, trustworthy, and experienced real estate agent — especially in the complex and competitive Seattle real estate market — is undeniable.

Good real estate agents streamline the home-buying process, helping you:

• Save time house hunting, visiting open houses, and handling necessary paperwork;
• Save money by negotiating a fair purchase price for your home; and
• Save headaches with access to the Multiple Listing Service and connections to third-party experts such as home inspectors and real estate attorneys.

Yet, not all realtors are created equal.

How Do You Find the Right Real Estate Agent?

Some real estate agents may be inexperienced, undertrained or programmed to deliver sales pitches rather than provide real value. Sadly, there are also some realtors who don't have your best interests at heart.

This type of agent may withhold critical information, potentially leaving you unaware of all your options throughout the home purchase process.

Buying a home in Seattle can be a great investment and possibly one of the best decisions of your life — if managed correctly. This article will guide you on how to find a real estate agent who deserves your trust and meets your needs effectively.

Before you commit to an agent, here's what you need to know...

Realtor, Real Estate Agent, or Real Estate Broker? What's the Difference?

To this point in the article, we've used the terms "realtor" and "real estate agent" seemingly interchangeably, but there are a few nuances between these roles worth mentioning, as well as that of a real estate broker.

Real Estate Agent

A real estate agent is someone who has obtained a real estate salesperson license from the Washington State Department of Licensing. This individual must complete pre-licensing education courses and pass a state examination. Real estate agents work under the supervision of a real estate broker and are authorized to conduct real estate transactions on behalf of buyers and sellers. They cannot operate independently and must hang their license with a licensed brokerage.

Real Estate Broker

To become a real estate broker in Washington, one must first work as an agent and then complete additional qualifications, including further education and passing another state exam. Real estate brokers can work independently, open their own brokerage, and hire agents to work for them. They are responsible for overseeing real estate transactions and ensuring compliance with real estate laws and regulations.

Realtor

A realtor is a real estate agent or broker who is a member of the National Association of Realtors (NAR). Not all real estate agents or brokers are realtors, but all realtors are licensed agents or brokers. The term "realtor" is a trademarked term used to identify a member of the NAR who adheres to its code of ethics and professional standards.

What Does A Real Estate Agent Actually Do?

The real estate industry is complex, and understanding the basic terminology is just the beginning. Realtors, whether acting as a buyer's real estate agent or seller's agent, do far more than many realize.

They spend numerous hours staying updated on laws, regulations, and market changes, enabling them to play a critical role in facilitating real estate transactions for both homeowners and buyers. Some realtors specialize in representing sellers, while others focus on buyers or renters. In some cases, a realtor may handle both sides of a transaction.

In addition to some of the qualities we've already outlined, a buyer's agent is responsible for:

• Helping you understand the current market to ensure you're informed and ready to act.
• Filtering and presenting homes that meet your specific criteria.
• Arranging showings and guiding you through open houses.
• Assisting in drafting the purchase contract, managing all the paperwork, and navigating necessary disclosures.
• Aiding in price negotiation to ensure you pay a fair price.
• Coordinating the transaction, involving a real estate attorney if necessary, and ensuring all closing documents are properly handled.
• Facilitating a smooth closing process to finalize the purchase.

Through these actions, a buyer's agent ensures you're well-supported throughout the complex home-buying process. But to ensure you get the best possible deal on your Seattle home, there are some key things you need to know about your real estate agent.

5 Essential Insights for Choosing the Right Real Estate Agent in Seattle

These five insights will help you evaluate their capability and integrity, ensuring that your interests are prioritized throughout the buying process:

1. You Can Negotiate the Commission

Typically, real estate commissions — split between the seller's agent and your buyer's agent — range from 5% to 6% of the home's purchase price. Since these costs are generally covered by the seller, who also occasionally pays extra bonuses, it's in your interest to fully leverage this arrangement.

However, many homebuyers don't realize they can save money by simply asking their agent for a discount. Most experienced buyer's agents have the flexibility to negotiate their fees, and it's not uncommon for them to offer a 1% cash back rebate at closing. For instance, on a $500,000 home, this could mean an extra $5,000 in your pocket, which can help with closing costs, moving expenses, or even funding your housewarming party.

If you're dealing with just a seller's agent, you might even manage to cut the agent's commission by half, saving 2% to 3% of the purchase price.

It's important, though, to approach this negotiation carefully. You want to ensure that your buyer's agent remains motivated to prioritize your needs. After all, if the real estate agent's commission is significantly less from helping you compared to what they might from another client, their incentive to secure you the best deal could lessen.

2. In-House Lenders Seldom Have The Best Terms or Rates

It's not widely known, but your real estate agent might not have much choice when it comes to recommending their company's in-house mortgage lender. This practice is often driven by internal policies where agents are incentivized — or even required — to direct clients to a preferred lender. While this might streamline parts of the buying process, it's a practice that exists in a gray area of personal finance, where brokerages may benefit from kickbacks.

The real issue here is that many of these in-house loan officers might lack the motivation to fight for the best interest rate or terms for you. With a steady stream of easy leads, they don’t necessarily need to work hard to customize mortgage loans to your advantage. If your case presents the smallest of challenges, they might not go the extra mile.

That's why getting an initial quote from them — without impacting your credit — is fine, but it shouldn’t be the end of your search.

Following up with Seattle's Mortgage Broker can be a very smart move. We look at all the documents associated with your application, and put your home loan in front of several lenders to get you a competitive rate and a low monthly payment that will save you money. In addition to lower rate programs, we're able to close in as little as eight days, allowing you to close the entire process of securing a mortgage loan faster than competitors.

3. Real Estate Agents May Not Always Prioritize Your Best Interests

When engaging with a Seattle realtor, it's important to understand that their legal obligation may not always align with your best interests. While most homebuyers assume that any realtor they work with is there to serve them, the reality can be quite different, especially if you're dealing directly with the seller’s agent.

If you bypass a buyer's agent and opt to work with the seller's listing agent, remember that their primary goal is to secure the highest asking price and the most favorable terms for the seller. Their strategies, from setting the sales price to structuring the sale agreement, are designed to benefit the seller.

Real estate agents, like anyone else, have personal financial obligations — whether it’s making car payments or supporting their family. These pressures can sometimes drive them to push for the highest possible offers, which maximizes their commission but may not necessarily secure the best deal for you.

When comparing homes and prices, always consider this dynamic and ensure you have a dedicated buyer’s agent who is committed to finding you a home. This will help you navigate the homebuying process with more confidence and less risk of overpaying based on skewed advice.

4. You Don’t Need To Deposit Money With An Agent's Broker

It's common practice for real estate agents to suggest that you place your earnest money deposit into their brokerage's escrow account when you make an offer. However, this might not be the best approach for you.

While you can certainly follow this advice, be aware that it's generally riskier and could complicate things at closing. If, for any reason, the deal doesn't go through, the brokerage holding your deposit could make it difficult for you to get your money back. Plus, if the transaction does close, your deposit will need to be transferred to the title company or the office of the real estate attorney handling the closing — which just adds an unnecessary step.

Most buyers find it safer and more straightforward to direct their earnest money deposit directly into an escrow account managed by a title company or a real estate attorney. A trustworthy buyer's agents will advise you that this route not only secures your deposit but also simplifies the process if the deal falls apart.

With this method, it's much easier and quicker to have your deposit returned should you need to back out.

5. Many Closings Never Happen

It's assumed that most home sales close without a hitch, that buying a home is a straightforward process with fast payment.

In reality, a significant number of deals fall through and are delayed. Even if we believe the smallest estimates of pending offers that fell through in 2023, it would still mean a quarter of a million home deals fell apart.

It's important to remember that not all Seattle mortgage lenders are created equal. Some are more diligent and take the time to prepare their clients thoroughly, resulting in much higher success rates. These lenders follow their own rules, focusing on quality rather than quantity.

In a hot market, it's crucial to protect yourself by discussing a realistic closing date with your loan officer. If the market is busy, consider setting a closing date 60 days out to account for any delays. In slower times, a 45-day window might suffice. Remember, you can always close earlier if everything is prepared ahead of time.

10 Tips For Choosing The Best Realtor When Buying A Home In Seattle

Even though you're under no legal obligation, buying a house without a realtor is asking for trouble. But finding a skilled and trustworthy buyer's agent means knowing what to look for. Here are 10 tips to help you select the best Seattle realtor for your home buying journey:

1. Ask for Referrals: Start by asking your mortgage broker or other homeowners for recommendations. A referral from someone you trust can be a solid starting point.
2. Check Reviews and Complaints: Look up potential realtors online. Platforms like Google, Yelp, and Zillow can provide insights through reviews and any registered complaints.
3. Professional Experience: Investigate how long they've been in the real estate business and the number of transactions they've completed. Experience in the Seattle market is crucial.
4. Conduct Interviews: Meet with potential realtors to see if their communication style and personality fit with yours. Remember, this is someone you’ll be working closely with.
5. Communication Skills: Pay attention to how well they listen to your needs and how effectively they communicate their thoughts. Good communication is key to a successful real estate transaction.
6. Honesty and Integrity: Choose a realtor who is transparent and willing to tell you the hard truths, not just what you want to hear. Their ability to be upfront about various aspects of the buying process is vital.
7. Specialization: Depending on your needs, you may want a realtor who specializes in certain types of properties or works primarily with buyers.
8. Availability: Ensure that the realtor has the time to devote to your search. They should be readily accessible and responsive.
9. Negotiation Skills: Your realtor should have proven negotiation skills, capable of securing the best deal while protecting your interests.
10. Local Expertise: A good realtor should have a deep understanding of the local Seattle real estate market and trends, which will aid in finding a home that meets your criteria and investment goals.

Finding Success in Seattle's Real Estate Market

There are many exceptional realtors in Washington State ready to assist you. At Seattle's Mortgage Broker, we've worked with several exceptional agents who share the same client-first approach that guides us.

By being informed about some of the lesser-known aspects of the real estate process we identified above, you can save money and streamline your experience when buying a home in Seattle. It's all about staying informed, staying safe, and keeping more of your hard-earned money in your pocket.

If you're about to take the next step in your home-buying journey, reach out to us today. Not only can we help you find a top-notch real estate agent tailored to your needs, but we'll also work with you to secure the best possible home loan — in as little time as possible.

By this time next week, you could be closing on a loan for your new Seattle home.