Can I make an offer myself?

Question

I have found a 3 pack of houses that look very good when I run the numbers. If the conversation with the current management company goes well tomorrow I want to put in an offer. Do I need a realtor to do this or is it something I can do on my own? The seller is using a realtor that I have been in contact with regarding the properties. Thanks!

Account Closed · Answer

I'm curious as to why you plan to talk to the current management company.  Do you plan on hiring them?  If not, I don't see the point of talking to them.  Their agenda will be do convince you to hire them.  I wouldn't expect them to help you objectively analyze the property.

The upside to just representing yourself, if you feel confident to do so, is that the listing agent will be a lot more excited about passing on your offer, because he/she will get the full commission.  I never found a buyer's agent to be necessary.  They don't have anything to gain by getting you a lower price, because their commission is also based on the selling price.  And it's just one more middleman who's really not on your side completely.  Just my opinion.

Account Closed · Answer

If the properties are not listed on MLS but listed with a agent ? still is always a good idea to have a agent who know how to do the deal i myself have a license and in some deals i used other agents to represent me cause no matter what i am not saving any money buy not hiring a buyer agent, so i get somebody to work for me and is free to me cause is coming out of the sellers pocket not mine.

Mike Dymski · Answer

The reason you are getting conflicting advice is that there are pros and cons to using a buyers agent versus using the listing agent.  When I was purchasing SFRs, I used a buyers agent because she was an investor agent, was absolutely excellent and I wanted her to continue to receive commissions and solidify that relationship with her (to be her go-to investor when she had a property).  When I purchased a small apartment complex, I did research and went back and forth on the pros and cons and decided to use the listing brokers.  In commercial, the brokers are more reluctant to work with buyers brokers or provide their off-market properties to these investors (at least in my market).

Your situation and access to a good buyers agent or lack of (and future plans with that agent) could help make the decision.  Good luck.

Robert Melcher · Answer

The agent may be licensed, but that doesn't mean they are a member of the local Board of Realtors.

The National Association of Realtors and State/local Boards of Realtors (which provides MLS) is a separate organization with stricter standards than just the license requirements of the state.

Laura Capps · Answer

Thanks for the feedback! What if the properties are not listed on the MLS?

David Dachtera · Answer

@Laura Capps,

Yes - you can submit offers yourself, enlist your attorney to represent you or, as some have suggested, establish a relationship with a buyer's agent.

You probably won't take anything more from the proceeds for having represented yourself as the buyer.

Your attorney will add it to the fees (s)he gets from closing.

A buyer's agent will take either a commission split or a negotiated fee from closing.

Be advised that any expenses impacting funds to the seller from closing may impact your ability to negotiate a specific purchase price. A lot may depend on the seller's needs.

My $0.02...

David J Dachtera

"Success is not a destination. Failure is not an event. Success is a process, failure is a choice."- DJ Benedict

Curtis Bidwell · Answer

@Laura Capps Yes you can... BUT... If the home is listed you will do yourself a BIG favor by having an agent represent you!  The listing agent represents the seller - it is their obligation to do everything to benefit the seller.  Having you own buyer's agent does not cost you any more, but they will represent your interests in the deal.

Christopher Goldie · Answer

@Laura Capps, My personal suggestion is to find an agent to represent you. Not saying working with the sellers agent is a bad thing, but it may be a good idea to have someone in your corner looking out for your best interests and not the sellers.