Do I need an agent to represent me?
Realtor · PHX AZ · Member since 2017 · 48 posts · 20 votes
Do I need an agent to represent me?
Most Popular Reply
Andrew ValeriBusiness Member
Rental Property Investor · Attleboro, MA · Member since 2020 · 22 posts · 17 votesHey Michael,
"NEED" an agent?
No
Work with listing agent directly if you're not an agent?
I wouldn't reccomend this. They only truly represent the seller, not you.
However from my experience buying a 3 unit for my first deal - working with an experienced investor/agent who himself had 30+ doors in his portfolio was helpful.
I bought my triplex $75k under asking. I showed him the listing as it had been Back on Market 3 times with a days on market 100+ days. I understood we were likely looking at a motivated seller.
My agent asked the right questions to seller agent by finding out the right pain points and then did an effective job catering to the sellers ego that I likely wouldn't have been able to do since I was the "bad guy" coming in so far under asking. I gave them what they truly wanted which was to close and taking on their tenant issues.
Closing got pushed back 2 months because of an issue with the title.
I could have possibly navigated the closing process alone but I wouldn't have felt confident once we reached the snag with the title. I was happy to have an experienced agent to keep me level headed to keep me focused on bigger picture. If I backed out or didn't negotiate correctly with title issue and seller backed out at that point it would have been a huge mistake.
I work a full time job - and wouldn't have been available to deal with these headaches.
In my eyes you don't not hire a professional just because you think you can do the job if everything goes right. It's good to have someone with experience who knows what they are looking at to diagnose a problem/fix it before you know its there and before more damage is done.
Overall, I would suggest yes to an agent who is also an investor at least on your first deal. My agent is now one of main my mentors.
31 Replies
- Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes4y
@Michael Mastantuono as many have said on here if don't have absolute 1,000% command of everything then absolutely not, especially if listing broker is paying a buyers broker commission because it's putting self at risk for 0 gain, and really 0 reason.
Now deep diving a bit more into strategy, assuming a person is 100% on knowledge and experience base. IF, and this is a major key point, IF working with listing broker will put listing broker into a dual agency position, then YES there can be some advantages.
Strategy speaking, if you press an agent into a Dual Agency position they, in simplest form, no longer represent seller or buyer, instead they represent the transaction itself. This can press for greater clarity of information and disclosures of things that may not be so forth coming when broker is in full fealty too seller.
This point must be clarified immediately up front, and facilitating buyer is completely different from "yes, I will be in dual agency", and don't be surprised if they say NO they won't do dual agency but will instead refer you to ___ agent.
- 4yScott AllenBusiness MemberReal Estate Agent · Columbus, OH · Member since 2020 · 449 posts · 471 votes
Look into the differences behind how an agent can represent you as either a client or a customer and understand how you'll be represented throughout the transaction.
Client - Fiduciary Duties: Accounting, Confidentiality, Care, Obedience, Loyalty, Disclosure
Customer - a party in a transaction with whom an agent does not have a fiduciary duty or relationship, but with whom an agent must still be fair and honest.
- Investor · Van Isle · Member since 2021 · 455 posts · 226 votes4y
When asked 'do I need a Realtor', I will typically say yes, because you dont know. If you told me you dont need a Realtor and this is why, I might say, good for you.
- Flipper/Rehabber · Phoenix Arizona · Member since 2020 · 1k+ posts · 686 votes4y
Have you bought listed property with an agent? How many properties have you bought?
Have you bought listed property without an agent?
It's up to you. Your ability to out wit enough to negotiate and save you a few thousand dollars in commish!!!
Do you have construction cost skills to repair needed items, do you understand the reason why the seller is selling?
All these items will determine if you need an agent to represent you.
Are you a cash buyer ready to rock and roll.
If you are confident and are ready to do the deal without an agent then do it.
If you are thinking " I don't know this answers " I would hire a very good agent ( top 2 in any office).
And let them work for your deal!!!
Good luck
- Flipper/Rehabber · Rochester, NY · Member since 2014 · 1k+ posts · 1k+ votes4yThis is a good answer because the truth is it depends on you and your goals.
Quote from @Dwayne Poster:
When asked 'do I need a Realtor', I will typically say yes, because you dont know. If you told me you dont need a Realtor and this is why, I might say, good for you.
Let me just tell you about my experience.
Early on (2009-2010) I used a couple of investor friendly buyers agents. They could alert me to deals and pocket listings. I did buy a foreclosure that way. And I missed out on a home run deal because I wasn’t emotionally or financially ready for it. But I wanted to flip, not hold rentals and most of the vast majority didn’t make sense, even back then.
Then I stopped using buyers agents and reached out directly to listing agents. My thinking was I wanted to get on their list of cash buyers when they had pocket deals and if they had anything, even though their responsibility is to the seller, not me, because they would get both sides of the commission they would want me to be the successful buyer. Usually this just meant that they would indicate where I would need to be to get the deal. This was before agents could freely share what other offers they had. I would ask, “Would it be a waste of my time and yours to write up an offer for $X?”
That was a different market, though.
Now I pretty much never buy listed properties. They are just not good enough deals for me. That doesn’t mean they wouldn’t be good enough for others given their goals
All in all, I agree that you are probably in a place in your investing journey where a buyers agent makes sense, and that may never change. That’s fine. We all have different goals. Here is my thought. If you need an agent, you should not be doing deals. 99% of them have no idea about the property, some walk in for the 1st time with you. It's all about the numbers. Again, if you need an agent, you are not ready
Good Luck
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