So I'm looking to buy and hold (first time since 2007.. ha) and I'm trying to decide if I should use a realtor and have them get us in to the houses on the MLS, etc.. (I'm not really sure what the other benefits are, b/c I know every house that's decent in my market.. any insight would be awesome)
Or should I give the listing realtor 6% and have them work double hard to get a lower bid accepted.. give us the bottom line, etc.. I've been leaning towards this b/c it's worked in the past in a few transactions I've been a part of. They hinted towards the lower number b/c they get 6%..
I saw this link and description and I wanted to get your opinion. Thanks for any help!
3) Give the Listing Agent Both Sides of the Commission
Many listing agents will go the extra mile to get your deal pushed through when you are giving them both sides of the commission.
It took me awhile to catch on to this strategy, but once I started implementing it, my acceptance rate improved remarkably.
Many people believe that it makes no difference whether or not the agent gets both sides of the commission- the agent, after all, is supposed to have their client’s best interest in mind, and such things shouldn’t matter when they are presenting the offer to the seller. While that sounds great in theory, I can tell you from experience it is not the case in most instances.
Hi @Chris S.
Welcome back to RE game!!
When I first started in 2010, I made my offers through listing agents and I think it gave me an advantage over an investor who was coming in with a buyer's agent. I was able to get some really good deals using listing agents. The very first property I bought was listed for $65k and I offered $20k and settled at $22.5k. It worked for me with some properties, because I was buying inexpensive properties, where if commission split, each agent makes $750-$1,000.
After first few properties, I moved to using a buyer's agent because using a listing agent created a little bit extra work for me and I was getting busy with other things.
It doesn't hurt to make your offer with listing agent.
Thanks and good luck!
@Sharad M. Thanks for the info Sharad! I really appreciate it;)
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing