Buyer's agent for turnkey?

[Amy W.]

Hi there,

I'm reading, and reading, and reading, and learning the things. One question I can't seem to find the answer to--it seems too obvious for words-- is if you purchase through a turnkey company, do you use a buyer's agent? I just learned about appraisal gaps and appraisal contingencies and I'm realizing I definitely need someone who knows about these things and is my exclusive advocate, such as a realtor.

But with Roofstock and R2R, there is no mention of a buyer's agent. Roofstock is I guess acting as a buyer's and seller's agent at the same time-- which is tricky at best obvs--and certainly not a true advocate for the investor, from what I gather on here.

Amy

[Chris Clothier]

Quote from @Amy W.:

Hi there,

I'm reading, and reading, and reading, and learning the things. One question I can't seem to find the answer to--it seems too obvious for words-- is if you purchase through a turnkey company, do you use a buyer's agent? I just learned about appraisal gaps and appraisal contingencies and I'm realizing I definitely need someone who knows about these things and is my exclusive advocate, such as a realtor.

But with Roofstock and R2R, there is no mention of a buyer's agent. Roofstock is I guess acting as a buyer's and seller's agent at the same time-- which is tricky at best obvs--and certainly not a true advocate for the investor, from what I gather on here.

Amy

 Great question.  One thing to understand about "turnkey" is that it is a marketing word used to describe the transaction.  It is not a product.  The word has been used by so many companies and individuals to describe so many different definitions, that it is super generic now.  So, with that said, you can use a buyers' agent at any time to assist you.  That is a service that is provided to you.  It does not mean, however, that a company has to pay the buyers' agent.  That is a negotiable point when you are buying a property.  Many companies are not pricing in a fee with their properties so that may be something they ask you to pay.  If they are working on your behalf, it may not be a bad thing to pay for out of pocket.  Also, a buyers' agent may bring you other listings that do not come with a turnkey type of service.  

The main thing to understand is that if you feel unprepared to make an informed decision, definitely seek assistance. There are companies out there who market with the word turnkey and part of the service they offer is this assistance with making an informed decision. But, you rightly realized that there is a conflict. They are selling something. It is in their best interest to have an informed buyer, but it is also in their interest to make a sale. My family operates the oldest and biggest turnkey company, REI Nation, so I am giving you this advice as someone who fully understands that conflict and how you as an investor have to be careful. There are a lot of really good people in the "turnkey" industry as I would define it. But, as with any industry, there are certainly people who us the word turnkey to market what they do and who ultimately give the word a bad reputation. Hopefully that helped. Feel free to keep asking questions through here or privately if you need. Best -