Is it normal to use a realtor for houses under $40k?

Question

The state I am looking in is Arkansas but I figure people from similar markets would have an idea on this as well. I've only purchased properties so far that are more expensive, in other states, so had never thought about this until now as it seems less realtors would be interested in dealing with properties in that range. I should be fine without one if needed but I also realize that a good realtor can definitely add value so wanted to get some perspective on whether I should be reaching out to them or not. These would be all cash purchases as well in case that factors in. Thanks

Ryan Blackstone · Answer

As an agent, we have been blessed to work with some amazing investors. Last year we closed 21 million, and 70% of that is from our investors. I would not be cloing multimillion dollar deals with them if I didn't take the time to work on the 40k deals also. You just need an investor friendly agent and one that understand that if you become successfull, so will the agent.

Account Closed · Answer

Have you tried tax deeds - that's one of the cheapest ways to acquire real estate?

Nathan Gesner · Answer

As a Buyer, your Agent's commission is paid for by the Seller so it's technically free to you. Yes, you should use an experienced agent that can help you with negotiations, keep you out of trouble, and provide an experienced second set of eyes to evaluate purchases.

Carl Millsap · Answer

@James Elden we've experienced the same thing. I would 100% recommend you use a realtor.

As you've mentioned a good realtor can add value. A realtor who has your best interest in mind is well worth every commission they get and more.

What is the relationship worth to you? The commission on $40k is $2400, I think a realtor would be happy to make $2400 or whatever their cut is on a quick and easy transaction.

When a deal comes along, guess who gets the call? You.

1. You've proven you can close

2. You're a cash buyer

3. You're a repeat customer. It doesn't get any easier for them.

We've moved into multifamily, but have been working with the same broker / realtor for 18 years.

When an 8 plex was about to be listed we got a call...it never hit the market.

When a 40 unit property was about to be listed we got the call....it never hit the market.

The list goes on.....The relationship is well worth it.

Is it normal to use a realtor for houses under $40k?

Is it normal to use a realtor for houses under $40k?

Most Popular Reply

4 Replies