Can a person buy property with NO agents

Question

Well... As we speak my wife is closing on our first rental !! But a new prospect has come into light. I just talked to an investor who has more than 20 properties and wants to liquidate. NO seller agents.... Somehow I just fell into this, and I really want to capitalize on it as many of them look cherry, with 20 and 30% cash return. So my question is... How do I best capitalize on this? I am really green and looking for the best way to make money on this opportunity. I can probably finance two at best without outside help but it seems like I could do more with this information. Do I want a buyer agent (used on my first and only deal). should I get a real estate attorney? Can I build a deal to give this opportunity to an agent. Like I said I am very new to this but I can feel the potential so any ideas, opinions, or advice would be greatly appreciated.

Thanks in advance,

Yvette V. · Answer

I recommend an agent because you're pretty new.  Also there are so many things that can come up way after the sale that the agent should address with you.  If you have a good agent go with them.  It does not keep you from learning along the way and doing your own research.  My very first property I used an agent even though I had recently gone through a lot of real estate training.  A few reason... The legality behind purchasing was more than I wanted to face alone and they kept me accountable to my due diligence.  There may be a reason the seller does not want an agent involved other than commission which they are hoping you will miss like a code violation or cloud on title for example.  Also, the seller pays for the agent it does not means that because there is no agent involved they will hand over that commission to you and if so what you save may not be worth it in the end. Like my friend who purchased a property with faulty permits handed over by the seller.  I would compare this with buying a used car from a private owner vs. from a large bonded corporation.  Someone agents can be an umbrella of protection for many reason.  Certainly every situation is different but I would be over cautious if someone told me up front, no agents. No trying to rain on your parade but I would get out the umbrella:-) Happy buying!

Michael Seeker · Answer

The seller does not want agents because he/she doesn't want to pay commission and possibly wants to avoid an agent suggesting lower offers from comp analysis.

I've both bought and sold property without an agent, though I typically buy off MLS and use one.  It's not particularly difficult, you just have to do more legwork to make sure all of the components are handled (inspections, loan, title, closing, etc.).

All you really need is a simple contract form (can be found online) and put an offer in writing.  If you don't have a lot of experience with buying, you may want to pay an attorney to review everything and maybe even pay an agent a fee to go through it with you.  I would not try to involve an agent on a %-age basis as that is explicitly against what the seller wants and they may not even deal with you if you do.  If you do involve any outside parties, your best bet is to compensate them outside of the deal.

Robert Adams · Answer

AGREED!

Robert Adams · Answer

If you are the buyer you should have an agent because it costs the buyer nothing and they get professional representation on the deal.

If you are the seller and you want to save money on the commissions than you can certainly do so however, I hope you are seasoned enough to protect yourself in regards to risk, liabilty, disclusures, etc. Also be prepared to handle all the ngotiations and documentation. If you are not comfortable with all of this I would recommend getting an agent to repreent you.

Val Csontos · Answer

I like buyer agents, As they can be your banker/partner for your next deal, Here is how:

In my area i called around and had located one who is willing to accept their commission in the form of a monthly payment over say 60 months.

So when we settle on an investment property I use their commission to cover closing cost or at least a major portion of it and there by decreasing the down payment required for my purchase.(a better deal for me)  The monthly pay to the agent comes out of the cash flow of course!

Good Luck!

Account Closed · Answer

I agree you don't need a agent but don't start crying when something go wrong because you are trying to save a few pennies.

Joe Gore

Wayne Brooks · Answer

Yes you can pay the agent, actually their broker not the agent directly, any fee whether it's a % or a flat fee, for helping you, reviewing doc.s, etc.---and this payment can be direct, not as part of the closing or on the HUD.

Sam Leon · Answer

For code violations I would not rely on an agent or even an inspection.

An inspection tells you what works and what doesn't within the scope of what they inspected.  It's very generalized and they don't look for code compliance or violations although most inspectors will point out obvious code violations such as missing plumbing cleanout or electrical outlet distance from floor etc...you should rely on an inspection to give you a general idea of the health of the property.  For most seasoned investors the inspection is more or less something you pay for to catch something you might not have yourself.  Nowadays I rarely find something an inspection would catch that I don't know about.

Code violations are difficult to find.  You need to go to the building department and get the last legal set of plans.  You can also go to permits and look up all opened, closed and expired permits, with those in hand when you walk the property you are likely to be able to see what's been altered, and derive what's legal and illegal.

With as many as 20 properties you need a whole team to help you.

Mary Joe · Answer

I think it depends on the market too.   For well over a decade I have used countless agents to represent me as a buyer in NYC,  there is NOT one agent who would do the due diligence for me or point out things like you suggested such as code violation or issues with the title.   It's not their job.

I have never come across a situation where my agent would tell me not to buy because of certain issues with the building or the neighborhood.

Mark Gruetzmacher · Answer

Hey Sid, I don't mean to jump in your thread but just wanted to say HI and I am in the Rapid City Area as well and new to BP and REI also.

Can a person buy property with NO agents

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