Jacksonville listing agent?

Question

Since Jacksonville, FL is a hot market right now should I just make an offer to the listing agent or should I have a buyers agent help me out make the offer? I have found a couple of deals that I want to pursue on my own. If I do not get a buyers agent what should I be looking for so I do not get hosed at the negotiating table? Thanks

Mario Gonzalez · Answer

In addition to being a Real Estate Broker, Property Manager and investor myself.  I also teach real estate to Realtors across Florida.  Listing agents and Buyer's agents have different legal responsibilities to their "clients" when in a sale.  The BIGGEST thing that 99% of people don't know (and it is too difficult of a subject to get into in this thread, but I am happy to discuss over a phone call) is that working with the LISTING AGENT directly LIMITS your representation as a buyer.  In fact, you get what is know as a "TRANSACTION BROKER".  Their legal responsibilities can be read here: http://www.leg.state.fl.us/Statutes/index.cfm?App_...

BUT in short, you are limiting yourself significantly.  It is absolutely against the law for a transaction broker to "look out for your best interest"...and in simple translation...that could cost you thousands!

As a young investor, I bought from the listing agent.  As I grew in experience I always had my own agent and made certain I had a good one, with plenty of experience.

As mentioned in the thread above.  Good agents are busy. They don't have time to run around and look at a bunch of properties for every investor that calls...that will most likely not do business with them.  However, if you know what you want and are serious, the agent will work hard for you and will go above and beyond to keep your business and earn business from other serious investors.

Dimitri Paspalaris · Answer

So for more insight. I have lived in Jax for the majority of my life, My dad is a certified general contractor in the area, so I am not worried about possible repairs and work. I feel like if I did all of the leg work why should I give a buyer agent 3% when I could possibly use that lower the cost of the deal. Plus can I not use that as leverage with the listing agent to select my deal since they will be making more money? Thanks for the help.

Glen Friedman · Answer

As an out of state investor, it's best to get a buyers agent here in Jax.  This way they can do a better job of getting comps and letting you know the good and bad things about various neighborhoods and insights you may not have.

And since it doesn't cost you anything, it's a no-brainer.  Just make sure you're serious about buying so you don't waste their time looking at lots of properties, making offers just to find out you're not willing to do the deal at the end.  They need to eat too.

Even though I have my RE license, I always get other agents opinions about properties since I've only lived here for 1 year.  I can recommend somebody if you're interested.  Feel free to reach out if you have any questions.  Good luck.

Take care,

Glen

Gramercy Union

Elenis Camargo · Answer

@Dimitri Paspalaris I have read about doing both strategies. On one hand if you work directly with the listing agent, you could entice that agent to convince the seller more to take your offer since they will be earning double commission. On the other hand there are so many agents who are hard to get a hold of or just never reply. It's very odd but that's how it is. If it's your first investment maybe it's best to go with a buyer's agent. It does not cost you any money and your agent will be working solely for you, where the listing agent will be working for both and won't have loyalty to get you the best deal possible or to tell you when the property just isn't a good one or the area isn't good. When I first started my agent told me when a deal just was not good instead of letting me invest in something I'd regret later. I see you're from out of state so having someone you trust is key. I became licensed last month and would be happy to help if you decide to go that route. I wrote this article a few months ago and it was featured on BP, here is the link in case you're interested: https://www.biggerpockets.com/member-blogs/11360/83794-how-we-purchased-our-first-3-rental-properties-out-of-state-in-1-year