Author Topic: Do I need a Realtor?  (Read 748 times)

maz_phil

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Do I need a Realtor?
« on: August 16, 2018, 09:02:44 AM »
Hello Mustachians,

I am looking at an investment property and contacted the seller's agent 'Tammy.' Tammy let me know that she represents the seller and was asking if I have a realtor that I am working through? Should I get a realtor to help me view this property? Should I just handle this myself, and if I do so, would I save some money up front?

Kindest Regards,
Maz_Phil

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Re: Do I need a Realtor?
« Reply #1 on: August 16, 2018, 09:16:52 AM »
You won't save money, but you might be able to use the "Buyer Agent Fee" as a negotiation tool.  If you "self-represent" on the buying side, you will also have to be prepared to coordinate the purchase agreement process, and title company process.

I'm not sure how much you know about the process, so sorry if this is redundant, but I thought it might be interesting for others. Typically a seller agrees to pay a brokers fee through their "Seller Agent" which is then split 50/50 with the "Buyer Agent".  A seller can negotiate this fee with their agent, though it's often somewhere between 5-6% of the purchase price.  If we take 6% as an example, typically 3% will go to the Seller Agent, and 3% will go to the Buyer Agent, thought that's also up for negotiation between the two agents.

Buy self representing on the buyers side, you can effectively negotiate 3% back to the seller as part of your offer.

cliff

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Re: Do I need a Realtor?
« Reply #2 on: August 16, 2018, 09:19:26 AM »
1. You aren’t going to save any money upfront.  The seller already agreed to a commission for the seller to pay their seller representative whether or not you bring your own agent.

2. After reading some of the messages you’ve posted in the past I can tell you don’t know what you don’t know, respectfully. 

3. Properties for rental use as well as properties in foreclosure have all kinds of major hidden costs.  One example in the foreclosure category is special insurance concerns for foreclosures but there are others.  Big expenses that may need significant cash outlay that you need to be have visibility of in advance of buying.

You need someone to help you navigate or you will certainly be buying something you don’t have good visibility of.

I dropped you a private note so I don’t stray off topic of this particular post - check it out.



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Jon Bon

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Re: Do I need a Realtor?
« Reply #3 on: August 16, 2018, 05:49:22 PM »
Your first time I think it might actually be worth it (can't believe I am saying this)

And if I remember correctly, you are looking at complicated deals, foreclosures, bank owned, short sale etc etc. When you are just getting started you want your housing deals boring and your financing very plain. Complications can get really expensive in this business.

If you do get a realtor, I would make them earn their keep, as in wear them out with questions about how things are done in certain situations and what is typical of your area. All real estate (laws) are local!

Good luck out there.