$20K Property - Hard cash - Do I need a realtor?

Question

My husband and I have been looking for rental properties for some time. Our budget was under $100k so it has been tricky to find anything that will have a return. We did find a house in a college town just 1 hour north of us, it needs repairs, and does need all new floors and paint but we have hard cash, so no need for a lender. But... I have only purchased properties with a realtor in the past because of financing. Do we need one now?

Brandon Penn · Answer

1. You do not need a Realtor, especially if you have found a property already.

2. You should build a relationship with a Realtor that has experience with investing. Not all Realtors are the same. I am a Realtor that specializes with investors as I am an investor myself. I come across many residential Realtors that really don't know what they are doing when it comes to investments and can lead their clients into some sticky situations. Also in most areas the buyer agent is paid from the listing side commission (but can vary depending on your state). So essentially you don't have to pay anything to have a proffessional represent your interests and navigate through the process. Also this will give you access to leads both on and off the multi-list system that you may not have had access to.

3. In certain cases it can actually hinder the deal if you have a Realtor. For example if you sent out mailers, and found a property you want to purchase, it would be pointless to bring in a Realtor at that point.

Hope this helps!

Dennis M. · Answer

I don’t use agents to buy or sell in fact I rarely use attorneys either . But being your new to this you should seek wise counsel and have everything reviewed so you do t get burned

Brian D. Beatty · Answer

You do not, but like Mindy said, You may want an attorney to look over the contract, make sure you are not missing anything. Also as a Buyers agent, they are typically paid by the Sellers agent splitting a portion of the commission, they are collecting. You may pay around $300 brokerage or transaction fee, to a Buyers agent. So at that cost, I would consider using this as not only someone to review the contract, but also negotiate for you, schedule any inspections (and be there, if you are an Hour away), also know the transaction process and local area better than most, since they are active in it daily? Just a thought!

Mindy Jensen · Answer

You do not need a real estate agent to help you buy or sell a property. However, if you're not using one, you should at least have an attorney review your contract to make sure you're buying what you think you're buying. You should also have Title Insurance to make sure the people selling it have the right to sell it.

$20K Property - Hard cash - Do I need a realtor?

$20K Property - Hard cash - Do I need a realtor?

Most Popular Reply

4 Replies