Can I buy without an agent when flipping...

Question

Wholesalers facilitate a non-agent buying situation right? So in theory if I found the owner I could buy without a broker? Not saying I'm planning on doing it but I like knowing my options... if yes, can I do the same with REO's and short sales or do I need a broker for those deals?

Thanks.

Kevin H. · Answer

awkward silence............ is an effective tactic that I use when im trying to get a seller or buyer for that matter to give me information. It is very effective indeed, and im not just an investor im an agent............
Back to the topic at hand, If you can consomate the transaction with the seller then NO Commission is due to any party and you maybe able to get  a price reduction in the property accordingly. However,........ if you dont have the proper knowledge of current real estate law, disclosures, inspections, etc. then you could be walking into potential litagation if everthing goes sideways in the transaction. So really if the agent is the one assuming all that responsiblity ( and you dont have them a dime)why would you want to expose yourself in that manner?
One thing to always remember, As being an" investor" WITHOUT the realestate sales license you are..... free to practice your bussiness any way you wish. You can get away with a lot more........lets say ignorance on your part. The investor is able to "dance around" certain laws and regulations "I" on the other hand Can and Will be held responsible for my indiscretions or incompetence in a transaction because of my training and education in the industry.
Good luck,

Steven Hamilton II · Answer

I agree that having an agent makes many things easier.  The wrong agent can make it a big headache.  I'm lucky to have a family member that is a realtor.

Manuel A. · Answer

Hey, that's a great point about awkward silence. I'll be sure to use it when the time comes. Thanks!

Mike Jakobczak · Answer

Good points all round.

My opinion on it would be, if the property is listed with an agent, what do you gain by not working with the listed agent?  You can get a lot of info from a listed agent sometimes, motivation of the seller etc.  I usually let the agent sell me on the idea of the property and say nothing.  Awkward silence is golden and they tend to ramble on and get into some juicy details.  Double commission in real estate is like getting a bonus and agents love when this happens.  Who wouldn't.

At the end of the day, commissions are paid when the property sells and is paid by the seller.  If working with the listing agent and negotiations comes down to 3% to get the deal done, I can't see a listed agent losing a deal over 3 points.  As they say a bird in hand is better then2 in the bush.

Chris Clothier · Answer

Manuel Acuna The short answer is Yes.  You can absolutely purchase real estate, including REO's, without an agent representing you -  If you have the knowledge and expertise!  Many experienced investors use agents simply to save time and to streamline their buying process.  If you are just starting out, I would recommend working with an agent.  You are not responsible for their commission.  They get paid by the seller to represent your interest in the deal as the buyer.

Best of luck

Karen Margrave · Answer

You can buy property without using an agent. There are stock sales contracts you can buy online, that will pertain to your state. Only you know what your abilities are, and whether or not you are versed enough in real estate and the process to act as your own agent. Do you know what disclosures have to be asked for etc., understand the financing contracts that will be used, and the various things involved?

As for REOS and Short Sales, most of those are listed by agents. It is possible in some areas to search MLS to find the properties, and write your own offer if you're not an agent or member of MLS.

YOU CANNOT HOWEVER; BE PAID A COMMISSION IF YOU ARE NOT A LICENSED AGENT.

Remember, just because you can do something, doesn't mean you should! Sometimes the commission you save will look small compared to the costs involved if there's a problem.

Joe Delia · Answer

You don't HAVE to have an agent to buy.  There will be an agent involved if you plan on buying via the MLS which MOST REO (yes i know there are exceptions) / Short sale (Yes i know there are exceptions) transactions are going through.