Wow! If you hired a realtor you have a way to chase down the indenty of people who enter your home… For sale by owners let total strangers in to your home. Secondly, they will advertise it for you and qualify the people who are buying your home. If you don’t qualify correctly you will end up fallling out of escrow and then you have to restart your advertising and letting strangers in your home. Thirdly, all paper work and forms are provided to reduce the chance of a law suits. Real Estate Law is the fast growing Field of LAW. there are so many other reasons . I have a client who purchased a home that had soil movement causing structual damage a good realtor could of helped her out…
Most real estate agents aren’t worth their weight in dirt. They did well during the real estate boom, but then again a toddler could have done that, as well. Very few agents actually know how to sell, advertise or negotiate.
In refute of your statements…I went to 4 open houses this weekend not one ever asked me to verify my identity. Not once have I ever presented a photo ID to a real estate agent. So…wrong…total strangers end up in your home either way. (Nothing like scare tactics to promote an industry. Kind of like the Brinks Security ad, we’re supposed to believe that a burgular would break in by kicking in the door in when he knows someone is home.)
As far as advertising…6% of $500K is $30,000, for that price they better have dancing girls and banquets.
As far as qualifying, you’re suggesting that the act of using a real estate agent will make potential buyers more honest and that simply doesn’t happen. The only time it becomes reality is when that W2 gets presented to mortgage company.
For forms, you can just hire a real estate lawyer. I’m sure he’ll cost less than the $15,000 (3% of $500K) that the seller’s agent would cost.
Now, you’d think that from my statements that I’m anti-agent, but I’m not. I think agents are essential in the marketing of a property, but not for the reasons you’ve listed.
Seeing that you posted your email address in this and were looking to be contacted to help someone find a good realtor I would have to assume that you are a realtor and looking to refer yourself to anyone that responds. (In this thread and another one) Seems like just another cheap attempt to spam. Gotta love all the scare tactics in your post. :bs
I’m a broker in Utah. Valerie, you have a lot to learn about our industry. I’m offended that you would even come on here and try those tactics with people. In my opinion the traditional agent is going to have to change to make it in today’s market. What makes you think that a FSBO can’t do your job as well or better than you. With the advent of internet marketing, it’s a matter of time before the traditional agent is no more. The only thing of value we have as agents anymore is the MLS. I don’t think it will be long before someone comes up with something better. I don’t agree with what you said. I think BobbiOh hit it right on the head and I don’t think you should post anymore ads. You’re not dealing with ignorant people here. :banghead
Even that can be tapped by buyers that are looking for a home, I get an email alert the instant something hits the market in my area fitting my criteria. And as a FSBO seller there are many services out there that will list a home on the MLS for a small fee (way smaller than a broker’s fee).
Well, I think you have more value than just MLS. A good real estate agent makes my life easier. I don’t have to be there to show the house and they have a good handle on my neighborhood to give balanced opinions. It’s also the networking thing.
What’s deplorable is going to an open house and asking the agent sitting there a question, and the response is, “I don’t know, I’m not the agent that listed it.” :help I always make sure to take a card, so that I know NOT to use them.
BobbiOh,
You are right about realtors making your life easier, but a bad realtor can make your life very difficult. I have actually had deals blow up at the closing table because of a realtor.
Rick
You can hire someone to show your property for you for about $50 and with 5 minutes of training they’ll do a better job than most of the realtors out there.
I suppose if your niche works with the network a good realtor has then it would be useful to work with them. I operate in the rent to own world where realtors have no useful contacts for buyers or sellers, so I find talking to them at all to be a waste of time.
We rehab and flip. We have an agent that we buy from, whom I think is fantastic. He is someone that handles strictly REOs (one of the lenders uses him). He has no interest in selling our retail houses. He likes dealing with investors and dislikes dealing with retail buyers.
What we did last time was list the house through a MLS listing service and paid the buyer’s agent 3%.
We both work full time, so having the buyer’s agent be able to show the house frees up our time.
What I didn’t see on this thread about Realtors was the fact that the MLS is a working tool that no FSBO can ever achieve on their own. Other realtors are working their listings for them. When a realtor lists a home on the MLS, every realtor on that MLS has access to it. Thus a greater percentage of chance to get your home sold when you use a Realtor. A FSBO can put a sign up, put it on the interenet, newspaper, hold open houses, etc just like a Realtor can, but you are limiting yourself to those buyers who “SEE” your ad, sign, etc. You basically loose all the other Realtors with buyers out there by doing a FSBO. And the vast majority of Realtors DO NOT show a FSBO to their buyers’ unless the buyer specifically asks about it. And then, here comes the Realtor knocking on your door negotiating their commission anyways. I agree that you are better off using a Realtor to sell your home. If they are a good Realtor, you can bet your home will get noticed. And before anyone argues that a FSBO can go with one of those Pay for service Real Estate companies that put you on the MLS for a flat fee - Real Estate agents avoid those listings like the plague. Afterall they are effecting the entire potential for Realtors livelyhood. Unless a buyer specifically wants that home, a smart Realtor would never willingly show a home from a pay for service Real Estate company. That’s like cutting off the hand that feeds you. In South Florida so many real estate agents began cutting commissions that they are now down to splitting 2.5%. That’s ok in a lucrative market, but not in a slow down. And what about those Help U Sell companies. They are notorious for the bait and switch. They put their sign on your yard, put you on the MLS for a fee, and when they get a call from a buyer…they’ll show them other homes at a higher commission split. A good honest Realtor will work for their commission. It’s more than just plopping it on the MLS. Sometimes people forget that!
Whew! This was the wrong place to start the REALTOR argument. Too much heat in this kitchen. :help
Anyway, I hate to say it, but 90% of agents aren’t valuable to investors. Most of the “investor” agents that I’ve met don’t provide value and aren’t investors. They just pick houses off MLS and show properties.
I’ve met a few agents that I really respect, but the “coincidence” is that they are all active investors and add value throughout the process. For instance, they advise investors on how to maximize value before and during the rehab. They also provide on-target ARV estimates and have an extensive databse that investors can tap into for wholesaling, etc.
Some of the MLS listings that say good cash flow or INVESTORS TAKE NOTICE are a huge joke, a lot of the realtors in my area wouldn’t know cash flow from a potato.
Like this one?
Sales Price of $319K, over $1K in taxes…rents come in at $2300 a month (I would seriously question that! My guess is that rents are really about $1800-1900 a month) – but it’s a “Great Investment Property”…
Or this one?
Price is $281K, rents are $1350…think that’ll cashflow? This one is a lot closer to a “potatoe”…
Keith
I see a ton of “good investment properties” around me that are 2-3 families with a price tag over $300k. The only way they seem ok on paper to a buyer is if the place is owner occ and the owner sucks up all of the expenses like snow removal and whatnot as the cost of him living there (he’d deal with it the same in a SFH). As a straight rental you’d have to smoke crack to think they will work.
In most cases, they are just “good investment properties” for the seller and the seller’s agent…for the investor, frankly they suck.
Keith
When they say “great investment opportunity” maybe they mean that they’ll welcome an offer at 50% of the asking price so it has a chance of cash flowing 
I was at an investor club meeting tonight and some of the agents pitch silly deals. It’s usually overpriced lots or $280k+ homes that won’t cashflow. They claim the properties are “good investments” because of appreciation. Appreciation is a 0% return until you sell and most properties in our area will appreciate within 5 years, so it’s kind of crazy.
Appreciation don’t pay the mortgage. LOL
Especially here, where they’re depreciating.
Investor alert! LOL
http://newlondon.craigslist.org/rfs/290982484.html
$750000 Investors Alert
Unique investment opportunity. Acreage to build additional units. Exceptional multi-family complex overlooking Thames River. Rentals or condo conversion possible. Great views. 5 units with appliances. One 3 BR unit and four 2 BR units. Call today for a viewing. Nick Wylie 860-460-3495. See this listing and more at www.NicksHomeFinder.com