Q: Buying a condo in Missouri w/o using a buyer's agent?

Question

Hello everyone! I have a quick question I'm hoping some of the seasoned investors on here can help me with.

There is a 2 bedroom condo I saw in my area that is up for sale.  I believe it to be significantly undervalued.  I'm considering making an offer to buy it and rent it out.

Here's my question:  The seller is using a real estate agent.  I would like to buy it w/o an agent in hopes that the seller's agent will drop his/her commission by at least 2%.  This would save me a few thousand, but I'm wondering if the savings would be worth me forgoing a buyer's agent.  What do you think?

Also, if I decide to not use a buyer's agent, what do I need to be aware of?  Where do I start? (I will need to finance it).  Is there a good website that can give me a heads up on what I'll be dealing with?

Thanks!  :D

Account Closed · Answer

Condos aren't my favorite for rentals. The HOA can making renting very difficult.

Shane M · Answer

Good tips Wheatie.  Thank You.

Jon Holdman · Answer

You're trading maintenance you pay yourself for maintenance charges from the HOA.

Some HOAs have hard and fast rules about renting.  Be sure you know what you're getting into before you jump in.  Read their bylaws and meeting minutes and review the HOA finances.

Jon

Shane M · Answer

But don't you think there can be advantageous such as low maintenance and possibly better quality tenants when comparing a house at similar value?

Anyone else want to weigh-in on this?

Danielle Hinderliter · Answer

one thing i am seeing ALOT of around here is that agents are doing some kind of refund if you buy through them. see if there are any desperate agents that are doing this and use them to look after you. they are doing NO work finding the house, hardly submitting an offer and basically just saying "yep that kosher...heres the papers...this means "xyz"....surely some agents need business in MO. with their refunds you'll essentially be getting a lower commission AND getting someone to look after you.

Richard Warren · Answer

Unless you have a lot of real estate savvy you absolutely should use a buyer’s agent.  The seller’s agent is obligated to protect the interest of his client not you.  You run a large risk of getting the short end of this deal if you go it alone.  You may think you will be saving money but it will probably cost you a lot more in the end.  If you give your location you can probably get a referral to a good agent from someone here.

8)

Jon Holdman · Answer

Unlikely you'll get any discount if you don't use your own agent.   The listing agent will just end up getting a "double dip" and collect both sides of the commission.
Jon