I have been in this business about a year. I work primarily on short sales but would like to expand and try to buy some REO properties. A question please…when the REO is listed with a realtor which a lot of them in Houston are, do most people use their own realtor to make an offer or do they make the offer themselves directly to the listing agent? Thanks!! :biggrin
I always use my own realtor.
Use your own realtor - why not, buyer’s agents don’t cost anything to you.
Technically, you hire your agent and agree to pay them their fee. Most times, the selling agent is offering a certain percentage to the buyer agent, so the fee is covered by the seller.
Let’s say your agent charges 3% as a buyer agent, but the seller only wants to give 1.5%. You’re responsible for the other 1.5% and need to work it out with the agent. Most sellers usually cover the buyer agent fee, but it’s a misnomer that Buyer Agents provide “free” services unless they’re rebating their full fee to you and taking zero percent as a fee.
Why not go through the sellers agent, then request a 3% rebate at closing that would ordinarilly go to the buyers agent :cool If they balk, get a buyers agent and they’ll still lose the 3%
If someone asked me for that 3%, I’d tell them to just get an agent. Being on both sides of a transaction isn’t worth it because you have full liability, especially if there’s a newbie on the other end. If you don’t at least get more pay to work both sides, there’s no point.
It’s worth a try though…
I buy exclusively REOs and I always use my agent. The agents that the banks use don’t do anything but list the house. They won’t even come and open the door so you can examine the house. My agent also understands what I am trying to do and can explain it to the bank.