Buying Off Market home using a realtor?

Question

Hi:

I'm just getting started looking for my first fix/flip.  I live very rural MO, but I am looking in Fort Wayne, IN (my daughter lives there).  Does anyone find off market properties and then use your realtor to make the deal?  If so, does the realtor charge a full 6% commission for that deal or just half?  Or is there some other deal that can be worked out?

Kathy Leach · Answer

Thanks for the reply!

Kenny Smith · Answer

@Kathy Leach

Great question!  So it really just depends on what you're comfortable with and how the deal plays out.  If they are representing you in the deal, and the seller is on their own, I would think the realtor would charge anywhere from 2.5-3%, but could charge more.  They could also ask the seller to pay for that or split between the two of you.  Everything is up for negotiation.

But, if you found the deal, and not the realtor, you could also look into working with an attorney to draw up the contracts and ensure no mistakes are made to save some money.  However, a lot of people think they can do it on their own, but having someone represent you and keep your fiduciary interest at heart can be smart if you're inexperienced with buying real estate.

Lastly, if the realtor finds the deal for you, they would likely not even show you the house without have an exclusive right to buy agreement in place.  Their finder fee essentially, but also representing you in the process.  So I guess it just really depends on the scenario as they will all be different.

Best of luck!

Kenny