Originally posted by @Sam Shueh :
Most agents are NOW administrative type meaning you need to view the properties yourself. They are there to guide you. At a recent listing I had 57 viewers first day, just 1 realtor card was left. Second day I had same faces , 2 additional cards. But realtors started calling me about making offers etc. Two days later we picked one buyer and informed other 7 offers that their offers were not accepted. Several I told agent do not bother to submit as they will not get the attention of sellers. On very low priced home say $125K many wanted to low ball. One had $2.5M in the bank wanted 30% off. One wanted one half of listing agent commission back. It received 18 offers sold at $329K.
Why would you price it so low to start out with.... I hate this lol.
80% of high end homes in SFBA are priced lower than market these days. Then sellers quickly raise the asking price. There is this consensus today that no one will accept below asking price in our area.
Just looked at $2-4M estates in Mtn View, Los Altos, Palo Alto.... As for 100K I am merely ans the questions as an example.
This is great
"I want to treat whoever is helping me with respect and especially be sure to pay professionals for their time. Im a contractor in my own line of business, and I expect the same with my clients. Although there are times when I provide certain services knowing it leads to other deals."
What I would do, If I were you, is to figure out your numbers and see if its worth it and feasible for you to pay $5000 per deal to your realtor. $20k (aka $277 after splits) pays too low. Ask the realtor if they'll put that money back in your pocket by purchasing a home warranty for each home (or you do it and take the depreciation if you're doing long holds). Please work with someone who you know, like and trust. A cultivated relationship, over time, will be financially advantageous for you. There's nothing I like more than meeting with my investor clients over the last 16 years and hearing about their net worths being into the 7 figures because of the deals that I've brought them. As you're interviewing realtors, talk to them about your long game vision. You'll find your person.
Good luck and have fun!
Get your real estate License so you can do your own deals and you don't have to wait on anyone.
You may want to look into what folks like @Russell Brazil suggested --- which is to offer a fixed commission. My general agreement with my realtors is that they will get at least $4,000 out of any property they worked on for me. If the listing agent didn't require the seller to do the same (which many do in my area), I'm fine with it coming out of my pocket.
One other suggestion is to potentially become friendly with the listing agents. Some agents specialize in fixer-uppers or lower-valued homes. Depending on your social skills and the amount of money you can invest each year, you might be able to get them to keep you in mind before they market the properties.
Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it as legal advice. Always consult with your attorney before you rely on the above information.
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