Would you use an agent for an off market deal?

Question

I have an opportunity to deal with a seller directly however the problem is that I don't have a good, in-depth understanding of how the offer process works. I am very dedicated and willing to put in endless effort to learn the ins and outs but this could expose me to unnecessary risk if I miss something.

The problem with using an agent is that they will want 3% which feels like a large amount for a deal that I found and that I'm negotiating. I just want the safety net of an agent to double check the work that I'm doing.

So the question is, would you bite the bullet and just pay the 3% or do you think the cost of an agent isn't worth it in this situation?

Caleb Brown · Answer

If you have no experience then it's worth bringing someone in. You could negotiate the commission structure down if you found the deal(a flat fee or 2%).

Corby Goade · Answer

I'm an agent, so you can take what I say with a grain of salt, but....

If you have to ask if you need one, you probably don't have enough experience to do it without guidance. People think it's simple, and the contracting is pretty simple, that's the easy part, but when things get hairy and liability comes around, that's when a good agent can be very valuable.

That being said, everything is negotiable- an agent doesn't have to be 3%, they can cost whatever you agree to. Heck, I'd probably charge you a pretty low fee if you just want me to review your contract and give you some pointers.

Find someone experienced and open minded that wants to help you grow. You be fair with them and they'll be fair to you. You never know where those relationships might go.

Keenan Cromshaw · Answer

How experienced are you in doing deals yourself? If you are uncomfortable/inexperienced with any step of the process so far (including offers), I would definitely recommend either talking to an experienced investor or agent that will help you.

Is the 3% going to kill the deal? If not, it's generally worth having the advice and expertise of someone versed in offers/transactions to help prevent mistakes that could cost you a lot more than that.  The fact that you are asking makes me think it would be best for you to hire someone to help, in all of my deals I have found (relative) peace of mind to be worth a little bit less profit.

Ken M. · Answer

Your real estate attorney can put together the paperwork and see to it that your interests are cared for for about $1000

Would you use an agent for an off market deal?

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