Should I work with a Realtor to find my first Investment property?
I'm looking to start out by buying a single family home in Westchester NY between $100-$200k with an Equity Line of Credit. Should I worry about a buyer realtor's fee if they can help me find a good deal?
Start out in NY
No, and I am actually a Realtor.
In my experience (15 years) its very difficult to find a Realtor who wants to work with investors, main reason is they have no motivation to buy and don't need to buy. In addition, most investors have no defined goals on what they want. Most investors tell Realtors "Find me a good deal" with no indication as to neighborhood, type of property, return requested.. There are just too many options to choose from and an experienced Realtor will not spend time with that.
1) Get precise and specific about what you want to buy if you want a Realtor to help you.
2) Spend some time and money and get your own real estate license. Even if you have great contacts nobody is going to "find you a deal" better than yourself
Unless things are very different in NY, you would not be paying an out-of-pocket fee to a buyers agent. The agents both get paid by splitting the commission that the seller has agreed to when the listing contract was drawn up.
Yes, it's true that there are some instances when, by being self-represented, you can get the seller and the listing agent to agree to drop the price by the equivalent of the buyer broker's part of the commission. But I wouldn't count on that, and I would say that the value of having an experienced agent negotiating and advocating for you in the transaction is well worth that cost anyway. You may well end up paying less overall or avoiding any number of potential pitfalls. Make sure to find a broker who know investment properties, not just homeowner sales.
Jean Bolger, 33 Zen Lane | http://www.solidrealestateadvice.com
I'd like to throw a few questions your way mainly around the topic of other ways a realtor and an investor can work together.
Don't realtors have access to expired listings and can perhaps refer the seller to an investor?
Can't a realtor share great reo opportunities? Are they worthwhile?
Thanks in advance for responding.
Thank you for your responses. I got a definitive: "No" do not use Realtors to do investment real estate, with good reasons presented. And I got a definitive Yes - with good reasons.
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