by Cindi A. ComchocSo you want to get great deals as a real estate investor! You’ve scoped out some properties, maybe figured out how you are going to pay for it. Next step is to call the Realtor on the sign in front of the house, right? NOT!
The Realtor whose sign is in the yard is working for the seller of the property. If you, as the buyer, use the listing Realtor to purchase the property, the listing Realtor may become a “dual agent” or possibly not represent you at all. As a dual agent the Realtor would be required to become a neutral party. The Realtor could not assist you with negotiating strategies, with price suggestions, or any information at all that could tip the scales in your favor.
The best way to ensure you are getting the best deals available to you is to be represented by your own Realtor, a buyer’s agent, in any purchase transaction. In most cases, the buyer’s agent commissions are paid by the seller’s agent. Note that it says “paid by the seller’s AGENT” not “paid by the seller”. The seller’s agent negotiates a commission with the seller then pays a buyer’s agent out of that amount. You not only get someone who is working just for you, but they are usually free too!
Your agent can help with price suggestions based on a market analysis. He/she can give you a “snapshot” of the area by providing listed and sold data, and possibly rental information. Your agent can make sure that all water/trash bills and all back taxes that go with the property are paid at or prior to closing. Contacts with other professionals (title companies, etc.), scheduling, and all of the paper work are handled by the agent’s office. A good buyer’s agent should save you thousands of dollars over the course of several investments.
A buyer’s agent can also assist in finding just the right properties to purchase, based on your own personal objectives. The agent can design Multiple Listing Searches (MLS) for exactly the types of properties you want, in exactly the areas you want to work. He/she can give you an idea if a house you are considering will sell quickly and what a reasonable “After Repair Value” (ARV) would be. A house is not a bargain if you end up holding it forever, while trying to sell it, no matter how good the initial purchase price is. The agent can point out design problems or flow problems with a house that might hinder its sale. The agent can suggest repairs or cosmetic amenities that might expedite the sale or rental. Your agent can sometimes become the “voice of reason” if you should get too emotionally involved in a purchase.
Here are several questions you should ask an agent you are considering using:
• How much of your business involves investment properties?
• What areas of town do you specialize in?
• Do you have experience with bank-owned, HUD, Fannie Mae, Freddie Mac and VA owned properties?
• How many sales transactions did you do last year?
• Ask the Realtor for references and talk to their clients.
Take some time to sit down with a Realtor. An hour appointment could go a long way in helping you accomplish your investment goals.
Cindi Comchoc specializes in working with investors and buyers. She is in her seventh year as real estate agent, and is a sales associate for Real Living Realty Services.
Cindi is the recipient of
The President’s Sales Club Award of Achievement, Ohio Association of REALTORS
The Sales Leaders Club Award of Achievement, Dayton Area Board of REALTORS
The Silver Sales Award, Real Living Realty Services
Cindi is a commercial member of Greater Dayton Real Estate Investors Association (GDREIA)
If you have questions, or would like an appointment with the author, please call
937-431-7749.
