Unwilling RE Agents

[John Williams]

I looking at cheap, distressed, and foreclosed properties in my area. However, no agents seem to “have the time” to show me these. I think the real reason is because they won’t make much commission off of these homes or they think they are wasting there time or something. Are they not taking me seriously? The goal here is to find houses under market value but agents don’t seem to want to help with that. They keep trying to upsell me saying you won’t like that or that property is terrible. Advice?

[Russell Brazil]

@John Williams like @Wayne Brooks said...a quality agent isnt going to spend their time on a property at that price point. I dont know your market, your price points, or your commissions....but to give it some perspective...the typical commission in my market is 2.5%.  Now take a typical ok producing agent in my market who might be on an 80% split.  They typically havea  transaction fee, $345 we see in my market a lot.

$60k X 2.5%=$1,500 GCI

-$345 transaction fee = $1,155

-20% split = $924

-20% operating costs = $739

- 40% taxes = $443.

Average time with client before going under contract 20 hours, contract to close another 20 hours. Thats an effective rate of after expenses and taxes of $11 per hour. 

So someone willing to work for $11 per hour after tax is what you should expect. I pay high school kids more than that to do jobs for me like deliver door hangers.  

So you have to make a decision....do you want to hire someone willing to work for that little, which means someone very inexperienced....make a go at it without an agent, or consider getting your license and representing yourself. (Its important to note, on foreclosures and short sales, an agent buying for themselves typically can not collect a commission, so keep in mind the few grand you are paying for the license is a sunk cost)