Would it be worth it... (buyers agent, commissions, Realtors, listings)
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Would it be worth it to get a real estate license, if I'm planning on buying and possibly selling several properties in the next few years? It's not an issue of trying to get out of paying commissions as it is the ability to have the kind of access to property listings that an agent would have. So far on the houses that I've purchased (four) I've done all the footwork myself and only had the agent come in at last minute. (Does that make me an ideal client? LOL)
Would it be worth it to get a real estate license, if I'm planning on buying and possibly selling several properties in the next few years? It's not an issue of trying to get out of paying commissions as it is the ability to have the kind of access to property listings that an agent would have. So far on the houses that I've purchased (four) I've done all the footwork myself and only had the agent come in at last minute. (Does that make me an ideal client? LOL)
Thoughts?
That depends on you.
If you have the knowledge, expertise & time to truly do all the work your self, and do it as well as an agent would do it, then it probably would be worth it for you to go get the license and access to the MLS. If you don't have that knowldege, experience & time, then you're better off getting an agent involved sooner in the process. As a rule, a good real estate agent will make the entire process easier faster & less stressful, in addition to making or saving you some money. Notice I say AS A RULE. If you are one of the relatively small percentage of people who truly can do it the right way yourself, well, then do it yourself & pocket what money you can, right?
One piece of advice; don't underestimate the costs, and not just the monetary cost, of getting a license. Look into it thoroughly in your area before you commit to it.
Last edited by Bill Keegan; 01-03-2008 at 08:06 AM..
Reason: typos
Thank you. One other question...if I were to find an agent that I wanted to work with exclusively, is it typical for a repeat customer to get some sort of lesser rate than someone who is just a one-time customer? Like a bulk discount
I suppose though that would depend on how much of a pain the customer is, and how much schlepping around the agent has to do for them...
Thank you. One other question...if I were to find an agent that I wanted to work with exclusively, is it typical for a repeat customer to get some sort of lesser rate than someone who is just a one-time customer? Like a bulk discount
I suppose though that would depend on how much of a pain the customer is, and how much schlepping around the agent has to do for them...
You answered our own question quite well.
I would suggest you let the agent know in advance that you might have repeat business. Don't ask for the discount on the first one. Get to know each other first, see how an entire transaction works out. Then, if you are satisfied enough that you want to continue using that person, and they want to continue working with you, a discussion about a reduction in rate would be in order.
You answered our own question quite well.
I would suggest you let the agent know in advance that you might have repeat business. Don't ask for the discount on the first one. Get to know each other first, see how an entire transaction works out. Then, if you are satisfied enough that you want to continue using that person, and they want to continue working with you, a discussion about a reduction in rate would be in order.
Cool. What red flags should I watch for in hunting for someone to represent me?
Cool. What red flags should I watch for in hunting for someone to represent me?
You're a tough one Red, so I'm not sure you should be looking the way many others do. You seem to want to do all the research & footwork yourself, then call on the real estate agent at the end, just to write up an offer. Not what I'd typically recommend, and certainly not making use of the wealth of valuable service & knowledge available from a good Realtor.
In any case, you want to be sure the person you choose to work with understands your goals & objectives, and is comfortable working with you to acheive them.
Don't bother with someone who isn't in the real estate business full time. I knw that will anger some real estate agents, and yes there are some excellent part time agents. A full time real estate agent will be more in touch with the market, will be invilved & immersed in market activity every day, and will be more ready to help you with what you need. Wouldn't it suck if you called on a Tuesday morning at 9:30 am, to see a vacant house that just got reduced in price to a number you see as a fantastic opportunity, only to be told, "Sure, I can take you out to see that house as soon as I get home from work. See you around 7pm."
As in any business relationship, but more important in real estate than in many others, I think, you want to avoid yes men. (YesPeople?) Work with a real estate agent who will truly be an advisor, who will tell you what you need to know, not what they think you want to hear.
Avoid, or at least be very wary of, agents who say they "specialize in" vast areas. I just don't see how a person can truly be expert on the housing stock in an entire state. I'll grant that some few might be able to do it (at least well enough to represent someone who does all the actual footwork themselves), but I've not yet met that agent.
Stay away from agents who suggest anything that seems shadowy or underhanded. For instance, when you tell the agent that you will be doing repeat business over the next several years and want to discuss a rate reduction. If by response he suggests that you pay the full fee & let him pay you back a portion under the table, without his brokers knowledge, walk away. If he's willing to cheat his broker that way, who knows what he might be willing to sell you out for. (For the record, the overwhelming number of Realtors I know or have spoken with would never suggest such a thing. I put it here because I recently heard of someone who did just that.)
There are certainly other things to look out for, and I'm sure others will put some of them up here. Hope this is helpful.
I think the reason I like to do so much of the footwork myself is because I don't necessarily know exactly what I'm looking for until I see it. It would feel like I'm wasting the realtor's time to say "Yeah I have seven houses I'd like to see this weekend" when I can do a little driving and research (like property values, other houses in that area on the market, etc) and probably eliminate five out of the seven before actually hitting up the agent.
The reason I'm going to have to find a good realtor though is because this year I will be moving to a new city and I will not know the neighborhoods and the local market like I do where I am now. So I'll definitely have to find someone that is good...
I think the reason I like to do so much of the footwork myself is because I don't necessarily know exactly what I'm looking for until I see it. It would feel like I'm wasting the realtor's time to say "Yeah I have seven houses I'd like to see this weekend" when I can do a little driving and research
A good Realtor can still help you do all that. For instance;
You start working with a Realtor, the first thing they will do is set up an auto alert for you. So every time a property gets listed or edited so that it meets your set of criteria, you get an e-mail with the property details. A good Realtor goes further. We look at those listings ourselves, immediately. We probably have, and should pass on to you, information about the neighborhood in which the property is located, a rough judgement as to whether the price is right on or too high or low for that neighborhood, possibly who the builder was and what his reputation is. If it's a resale, (most are in my market) we can get the lsiting history pretty easily, and get that to you so you can see the history of ownership and what's been done by each.
Here's the text, copied verbatim, of an e-mail I sent to a buyer client of mine in September of last year. It illustrates nicely what I am saying you should bve gettingfrom a good buyers agent.
"Steve,
I went through the four properties that you got in the auto e-mail this morning. The first one is a relist, albeit with a much nicer photo, of one we saw a few months ago. Regina didn't like the kitchen configuration there. Does she want to rethink that now that the price is down so much? Notice they also decided to leave the pool table down in the game room.
Number 2 is a nice property, with most of what you are looking for, one extra, and one slight downside. Almost a full acre, and you don't have to worry about the fence because it's already there. But here's the downside. There's a gas main running through that neighborhood, and every property on that street has an easement for it. Usually it runs along the back of the property, the last 20' or so. I'll look into this one, to see if that's the case here as well. The third one is probably a no for us. It's been vacant for most of 6 months, and I was in it when it was listed last time. It needs a ton of work. All the baths & the kitchen are completely original mid '60s stuff, which I know Regina can't stand even if it's in good condition, which this is not. Previous buyer backed out because it needs a new roof and there's evidence of some mold in the attic becasue of the leak. This isn't a horrible price though, and if you want to consider it, I'm willing to bet we can negotiate it down more to account for what it needs. The last one looks like a reasonable possibility. Room sizes are a tad smaller than your ideal, but not tiny. They say it was all renovated within the past two years. Close enough to the train station. I'll go out & preview it this morning & call you if it looks great. Let me know if you want to look at any of the other three."
Long post, I know. But worthwhile, I think, because it illustrates the type of info you get from a Realtor who knows what they are doing, and who works with you to acheive your goals. Automatically getting the new listings can be so much more than just the listing.
Are you moving to a different city or a different state?
If staying in the same state, take the prelicense classes.
Different state.
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