i do a lot of research on my own to find foreclosure listings. do most of you guys use an agent or not? if you use an agent, how do they get compensated. what is the benefit of using one…
Howdy Badabing:
If you are finding good deals on your own why would you need an agent. Agents are good at finding buyers when you have the property rehabbed. If you get a good deal and can fill out the contract and get the seller to sign them and take the contract to the title company then you will not need an agent. They can do all the leg work and make all the phone calls etc and if you are super busy they could be of benefit. You could also hire an assistant and pay a lot less. The commission on one deal will probably pay an assistant for a month. You may even be able to find one that knows more than you and I both I am sure you can find one that is a whole lot more organized that me for sure.
I do not know how I got off on assistants so much maybe I need one. Any way hope my rambling helps. LOL
Agents can be a great source for foreclosures. Look for an agent specializing in this arena.
I have access to preforeclosure information. I have keys and codes to foreclosed properties. I have a database full of information that’s unparalled (buyers & investors & referrals). I have experience valuing these properties–including cost repair estimates.
Regarding how an agent gets paid: You don’t typically have to worry about that…the seller (bank in the case of a foreclosed property) pays the agent…not you. We just submitted an offer for a client yesterday on a foreclosed property they intend on using as an adult care home–the bank is paying our commission…not the buyer. Therefore, we’re free to buyer’s…that’s a lot less than an assistant.
However, say you run across a situation (a FSBO) for instance–and the seller refuses to pay a commission. Most FSBO’s will pay @ least a selling commission, but once in a while you run across one who doesn’t (they’re really limiting their pool of potential purchasers in that case). Consider hiring an agent piecemeal to represent your best interest. You’ll have to do some work yourself, but you’ll still have the benefit of the Agents experience…which is well worth the price you’ll pay.
“…what is the benefit of using one…”
I would say that other than the medical profession…the realm of real estate is probably the next most litigious business going. For this reason alone…an experienced agent is worth their weight in gold.
Moreover, experienced agents are very knowledgeable with a lifetime of experience in real estate under their belt (note: I said experienced agents). They’re excellent, and practiced negotiators. They have a wide range of resources to draw from in any given situation. Personally, my understanding of market value routinely saves my clients 10’s of thousands of dollars (even when competing with discount brokerages), and my experience has made numerous (individual) investors 100’s of thousands in profit in just the past few years.
There’s an article on this site regarding the benefit of using & knowing any number of Real Estate Agents…if you can’t find it let me know…I’ll help you look.
-Infowell