Is it a good Idea to use a Realtor on my first deal?
You add real estate agents to your pipeline source, after you know what you’re doing.
Agents typically can’t spot a deal, if you peeled it like a banana, and stuffed it up their nose.
And the ones that can, already have a buyer pool. And to break into that nest, you’ve got to prove your are ready, willing, and able to buy.
Otherwise, if you can find the agents that frequently have pocket listings; and develop relationships with them; letting them know you’re a real, dependable buyer, and not a player, they’ll give you first bite at their apples.
Again, this assumes the agent actually knows what a good deal is. Which of course, is as rare as hen’s teeth.
Remember, agents are there to receive commissions, not make sure you invest wisely, much less profitably. Agents lie, mislead and otherwise tell you whatever they think you need to hear, in order to get you to sign on the dotted line. They’re not patient with ignorant newbies.
Otherwise, I’m sure somewhere there’s an honest, patient, competent agent, who’s not a housewife cum Century 21 flub, that could possibly help you on your first deal. Somewhere.
Hope springs eternal.
I agree with javipa that Realtors have no idea what house is a good. Saying that I use a Realtor on all my deals. I tell my Realtor to make this offer on that house. He does all the paperwork. Realtors are like free clerks because they get paid by the seller anyway.
No, do not use a buyer’s realtor if you do not know what you are doing.
Let me use an analogy.
If you won the lottery or got an inheritance of a million bucks and wanted to invest it all in the stock market with little knowledge of stocks, would you use a full service licensed stock broker like Jordan Belfort or Bernie Madoff and let them invest the money for you with their grandiose promises of high returns from their divine wisdom as an experienced broker?
Or, would you research the stock market thoroughly before investing and then use a discount online brokerage like Scottrade or E-trade which costs less than ten bucks per transaction and invest the money in the companies you thoroughly researched to be bargains or offering the best dividends without going bankrupt?
To me, the answer is obvious.
If you don’t know how to put a good deal together or what piece of real estate is a good deal, you need to educate yourself first, not trust someone else with all your money. When you blindly put your faith in someone else with your money, often times you lose it all to the Jordan Belforts and Bernie Madoffs of the world.
I will tell you, if I got a dime for every time I caught a salesperson lie to try to sell me something… Ethics doesn’t pay a salesperson’s rent and expenses. I used to be a realtor and those expenses are high.
Seriously, educate yourself first.
Then, test what you know in the field. Put in conditional offers. Then, review the contract with your lawyer and make the recommended amendments if he suggests them or pull out of the deal.
Learn and apply. Learn and apply. Learn and apply. And, don’t trust strangers with your money.