Buyer agent?

What are the pros and cons of having a buyer agent?

What can they do for me as a newbie investor?

What do they usually charge?

they will get a % of the sale just like the seller’s realtor. (it comes from the sale proceeds, so it doesn’t directly cost you anything… but indirectly it can, thats $ you could potentially get discounted)

they just help you find properties. if you use one, find one that knows about REI, not just finding a new home for mr. & mrs. smith.

explain what you’re looking for and what you want to do with your properties.

they still get a cut, but say they find a property for you that is $75k below FMV–which you would’ve never known about because you’re not as ‘plugged into’ that local market–then their 3-6% isn’t a big deal because they just handed you a deal where you’ll make $60k or whatever.

a good one can definately be an asset to your ‘team.’

on the other hand, a bad one, who only finds the obvious deals that you already knew about, is just skimming money from you.

Be very careful with who you decide to let into your team. Screen them very, very carefully. I’ve just signed a contract with a buyer’s agent a month ago. I gave him a lengthy explanation about what my intentions were in the REI business…but he’s a total idiot that only cares about getting his part of the comission. He totaly deceived me, has not been any help and hasn’t even found anything that is worth buying. Me being a newbie an all, thought that I would find really good, reliable and eager people that would really want to be part of a team in which all of us would help each other out. Learning Lesson # 1: Do It YOURSELF…I’m starting RE school next week to have more control of the properties I would like to invest in. I don’t see it as a failure, but as a step towards my financial education. Just be very careful, and screen anybody who you let into your team. It seems that these people smell inexperienced newbies and would love to take your hard earn $$$$. REI is a great career with lots of potential for financial freedom, but do your homework or they will eat you alive.

Good luck!!! :wink:

I do all of the leg work
I do all of the analysis regarding ROI ect ect…
I put it together in a neat little package
I know the area as well as the real estate agents
I’ve got the contacts for all tradesmen needed at trade discounts
I take a small piece of the pie and we are all happy.
I present it to an aray of people inside the comapany that review it too

What others do depends…but this is what we do.

Good luck :slight_smile:

Then again, not everyone is like you or your your company. Still, newbies be careful out there and DO YOUR HOMEWORK!!!

“…but indirectly it can, thats $ you could potentially get discounted…”

And now…the rest of the story (Paul Harvey)

Be careful with this tact. If you’ve found a knowledgeable, Agent w/experience working with investors…the money they could save you could easily be two to three times their commission.

And I’d never recommend asking a Buyer’s Agents to give up part of their commission so you can get a better deal–that’ll go over like a Lead Dirigible. If you’re in the car with them when you ask…you might find yourself hitchhiking home. You’d be better off getting your license yourself.

Beware of Bird Dogs claiming to know as much, or more than Agents. Talk’s cheap & they’re not held to the same standard as agents. Moreover…ask yourself why anyone with qualications & credentials on par with an agent would work for less…the license IS NOT that difficult to obtain.

I’d also caution against taking the advice of those claiming to have been “taken to the cleaners” by agents. There’s always two sides to every story…perhaps their expectations were unreasonable…perhaps THEY’RE the problem. Every once in while a client comes along who gives everyone a migraine…funny thing is, they never view themselves as problamatic (it’s always everyone else).