Should I involve my realtor with my direct mail marketing?

Question

Over the past few months I've been working with a realtor to buy a multifamily house in my area. At the same time I have been sending out yellow letters to generate off market leads. I am now starting to get responses from the direct mail yellow letters and I am considering the pros/cons of involving my realtor to facilitate an off market transaction. I am a first time home buyer and my realtor knows the market/area very well, however, I may be able to negotiate a better deal if don't involve them due to realtor fees. What would you do in this situation?

Eliott Elias · Answer

No benefit to you unless you don't know how to write a contract. They are going to want a commission for doing nothing, at the very worst negotiate commission to 1% for finding the lead.

Nathan Gesner · Answer

This is a common problem and it's because you don't see any value in your REALTOR. You think their only job is to find property for you. Other benefits include:

1. They can often negotiate a better deal

2. REALTOR will remain objective

3. They know the market

4. They know the laws

5. Contacts with contractors, inspectors, and other resources

6. They can protect you from the Seller and yourself

7. A second set of eyes to see things you don't see or understand things you don't understand

Just to name a few.

Jenell Poncabare · Answer

@Cameron Sahirad That is great that you started to send some direct mail and are starting to get some responses! There are a few pros and cons to consider when involving your realtor. The pros are that you get their two cents on the location of the property, you get to have your first contract negotiation with someone by your side who has experience and it may overall make you feel better about the transaction. The cons are that this will likely be an added expense to you or the seller or both. Which basically means if you are looking for a discounted off market property, then some of your discount you were hoping to obtain just went to the agent. Another con is that some of the sellers might be turned off by you bringing an agent into the mix. The information you need to do this on your own is at your fingertips online; it just depends on whether you are willing to get a little uncomfortable in exchange for the discount on the property. When I want to know what area a property is located in, I jump online and search the police activity in the area. Most areas will have an interactive map that will show you what has been happening in the neighborhood. The next thing I would suggest is get a purchase contract and read it over. Research and make sure you understand the different parts and what they mean. Lastly I would use a reputable title company (or attorney depending on your state) to close the transaction. They won't let you do anything accidentally illegal. Whichever way you decide to go, you are already setting yourself up for success by buying a multifamily as your first purchase! I wish you the best of luck!

Scott E. · Answer

As a first time buyer, you should absolutely involve your realtor. No questions asked. Pay them a flat fee to help you oversee the transaction and deal with the paperwork.

Also remember that they are going to be sharing that fee with their broker. So if you offer them 1%, they might only actually be walking away with around 0.5%. Probably still worth their time to help though, as long as you are sourcing the deal and negotiating the price.

Should I involve my realtor with my direct mail marketing?

Should I involve my realtor with my direct mail marketing?

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