When Should I Use a Realtor
Tonight I want to talk a bit about using a Realtor whether you should use a Realtor and when you should use a Realtor. Personally I will always use a Realtor! I tried selling my properties before and it’s just not something I want to do and for you as a beginner or as season investor I always recommend using a Realtor.
So let’s talk about that the two times when you do need a realtor first of all when you’re buying a property and secondly when you’re selling a property. Of course this is only true for transactions where it actually requires you to transfer and requires a legal listing and where a Realtor really is involved.
So first of all when you buy a home, home is listed on MLS let’s say that’s usually where you find your properties for sale an investment property you want to use a Realtor I mean why would you use their Realtor, secondly why would you not use Realtor why would you let somebody else represent you? It is very important to always use a realtor when you’re purchasing a property it doesn’t cost you anything their fees are being paid by the seller and therefore all those costs are are taken on by the seller.
The nice thing about using a Realtor during the purchase transaction or when you’re purchasing a property is that they can help you negotiate better and especially if they know what they’re doing in an investment property. In my earlier years I’ve had Realtor where they said I can’t really offer that or can’t ask to do that. Eventually they understand how I work and they do make those offers and we do end up getting good deals. I always say if I’m not embarrassed by the offer then I probably offered too much.
So get a Realtor who is experienced in real estate investing start working with that person so that person gets to know you and they’re able to bring you deals. And that they’re not afraid to do work for you and without being paid for example be able to do comparable market appraisals of comparable market assessment when you need work done when you want to try to run comparables.
When you’re selling a lot of people think well I am going to sell it myself right and I would save that 2 ½ well against a 5% commission. They go to for sale by owner sites where they say Realtor welcome for 2% and they think they’re big finance geniuses because are now saving 3% of whatever the percentages they are selling the house. I would never do that even as an experienced investor. I always always recommend you use a Realtor let them take the time to do the evaluation they have access to much more data than you do.
Why waste your time for a couple thousand dollars when they can be doing work for you plus they will be doing the showings for you. They will be putting all the paperwork in place will be doing all the running back and forth it’s just not worth it for me. I hear all the time, people they come to me I just sold my property I had it on site for one week and I sold it already. So what’s the first thing that comes to mind well obviously you didn’t offer enough or ask enough. I will bring in my Realtor and he will look at the transaction and and he will say well that’s $10,000 below market value they could of gotten thousand dollars more and that’s how you justify a Realtor. A good Realtor can actually build in their fee and the money that they make, will actually get paid out of the additional price that you built into the sales price.
The other reason or the other way realtor will save you money or will help your out is lets say you put the property on the market for sale and it too high a price so now sitting out there for a month, three months six months. Well guess what, that’s even worse because now you got a property that you have to start lowering now they think you are desperate so you’re not getting the property of the price you wanted. Now you have to go lower was called the stale listing for a seasoned listing sort and all kinds of different the problem different situations
I highly recommend using a Realtor in all your transactions and transactions where you’re purchasing or selling properties through MLS.