I have the opportunity to buy a property for a great price, new construction. I have been in contact with the builder (a real estate agent and his son) since before the construction even started and since I lived right next to the new property, he would give me first crack at the offer. We agreed on $430k, but when I brought up my real estate agents, he said that it wouldn't be necessary and that it would be a deal between his son (the actual builder and owner of the property) and I.
Has anyone purchased a property without a buyer's agent?
Do I really need a real estate agent? Should I insist on my real estate agent? Will he increase the price to compensate for the commission?
Thanks for the help!
Do you have a real estate attorney, or know one? The seller will want more money to cover the commission they would have to pay your agent and they are trying to avoid this.
@Christopher Hui Yes you can buy a property without an agent. I do it all the time. However I am an experienced investor and know the buying and selling process very well.
An experienced agent can guide you through the process and someone on your side is better than someone who represents the seller. If you pay the buyers agent out of your pocket it shouldn't affect the price. Keep in mind an agent cannot give you legal advice. A good real estate attorney may be a better option for you.
You only need an attorney. And make sure they are using your state real estate contract. Every contract should have an attorney review period and at least 5 days to perform an inspection. Earnest money should be held by an attorney or title company.
If you don't know much about real estate valuation, I would suggest you use an experienced real estate agent. You might end up overpaying for the property. If you're dealing directly through them, at the very least they should offer you a 2.5 % discount on the purchase price. They would normally have to pay a buyer's agent a 2.5 % commission.
Thanks for the replies everyone! I already have a real estate attorney lined up. He was my previous attorney from my last purchase.
As for the valuation, I'm putting a lot more value on this property because I own the property right next to it, and being a landlord that just has to walk over to the next house is extremely beneficial to me. In addition to that, the house right next to it, which was built identically to it sold for the exact same price. New construction multi family houses in my area are extremely hard to come by. The identical house right next to it also never hit the market, but I spoke to that owner and he said he bought it for $430k as well.
I'm just trying to remember what exactly my real estate agent did for me during my last purchase, and I think the most they really did was help me find my first purchase and walk me through the steps to buying the house.
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