do I need an agent?

[Jarek L.]

Hello

I'm new to this forum. I've reading many post in the last 2 weeks and now have one question.
I'm living in one of the EU Countries and would like to buy some properties in the US especially in Detroit area and have it ready to rent.
I've been researching some properties for sale, most of them are REO . I've chosen one property that looks good and is cheap.
I've enquired at the agency listing it and I've been told I need a buyres agent , I didn't have any, I was given a phone number to one, I called him and when I asked him who pays him for his services , he said the bank that is selling it.
1.Will this make sure that I get a good deal or will he make sure that the bank selling it and paying him a commission will get a good deal?
2. Do I need an agent if I want to buy a property, or can I just place an offer by myself?
3. What's the best way of choosing an agent if I want to make sure that he looks after me not the seller?
4. Who should pay the agents commission a bank selling REO property or a buyer?

I would appreciate if you could answer those questions and help me educate myself so I don't make silly mistakes.

Thank you

[Jon Holdman]

In the US the commissions are paid by the seller. If its an REO, its the bank that will pay commissions. Commissions are typically 6%, split between the buyer's agent and the listing agent.

No, your agent will not make sure you get a good deal. That's your responsibility. Your agent will make sure the transaction gets done correctly.

In most cases, you can submit an offer directly through the listing agent.

Your biggest mistake is that you're about to buy property long distance, in Detroit. I've seen houses in Detroit listed for as little as $0. That's right. You pay the closing costs and taxes and its yours for free. They can be too expensive even at that price. Detriot is losing population (not unlike much of Europe, Japan and Russia). It has too much housing for its current and future population. While I'm sure you can make money if you really learn the area and buy right, I'm just as sure you can lose big time if you buy in the wrong area.

If you want to buy in Detroit, or anywhere else in the US, get on a plane and go have a look in person. Totally serious. If you're not willing to do that, don't buy far away.