Dealing directly with the listing agent for an REO?

Question

I'm wondering if it's a bad idea to deal directly with the listing agent for an REO vs. having another agent represent me? This is a property I'm looking at for my first potential flip and fix.

David Beard · Answer

TONS of threads on this topic, Josh!

It may depend on who the REO lender is.  If it's a situation where the LA can potentially influence the seller, AND your offer is strong (cash or quick close with hard money, large EMD, no contingencies), then giving the LA the opportunity to earn both sides of the commission will work to your advantage.  If it's an on-line bid on Fannie Mae, HUD, or auction site properties, it won't matter.  Many high-volume REO LA's don't work with buyers, as they don't have time to run around showing houses to investors, so they shuttle them off to a buyer's agent in their office.  But even in that case, it is still to your advantage to work exclusively through a LA's office.

J Scott · Answer

My recommendation is to ensure that someone experienced and knowledgeable is representing YOUR interests.  The listing agent won't do that.  So, unless you're experienced enough to do that yourself or have an attorney who can do that for you, I would recommend you have another agent representing you.

J Scott · Answer

Get your license, represent yourself and then give the listing agent your half of the commission.

That way the LA gets the full commission and does essentially no work.

Bill Gulley · Answer

Advantage in working through the listing agent's office, not the listing agent. Read the issues in other threads, it is not where a new investor needs to be. :)

Anson Young · Answer

I go through the listing agent personally to make sure I get the deal.  If the agent is double ending the deal, its more likely my offer will get pushed hardest.

David Niles · Answer

EXACTLY!  Listing agent while their dual agency disclosure says they are to represent both sides equally, its almost impossible to do when you know what both are offering or willing to accept.

Its not just about price, its about fighting for all the little things / inspections etc. Always get your own independent agent.

Josh Randall · Answer

Thanks!

Josh Randall · Answer

J  Scott, I plan to get my license at some point, but I really want to get my feet wet now! :)

Josh Randall · Answer

Guess I kind of jumped the gun. Should have searched the forums first.

Thank you to everyone for the answers.

Bill Gulley · Answer

Steve Babiak as this has been discussed many times on BP and addressed. :)

Dealing directly with the listing agent for an REO?

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