Realestate agent needed for a cash offer on a flip?

Question

I am going to make some cash offers on some houses to flip so i need to try to save money anyway i can. But i am wondering if i need a realestate agent or not. How much % of the buy does realestate agents get in NJ from the buyers side usually?

Also if i do decide to do this alone, what things am i going to have to do exactly? I am guessing i have to hire a lawyer to check the title and other things? Also my contractor will go through the as is house for his bid on rehab before i make the offer. So what exactly do i need the real estate agent for that i cant do myself? Stuff like comps i can just use zillow or mls to find myself i assume. (Even though my next thing i am going to do is get my realestate license).

Can someone tell me what % i owe the realestate agent as a buyer? I know it will be included in closing costs but trying to figure out how much . I will be looking to flip in NJ.

Account Closed · Answer

if I am selling a property and the buyer brings in an agent then I RAISE my selling price to pay the buyers agent. Don't let anyone kid you that YOUR representation is free for you.

Account Closed · Answer

@Christopher Phillips

"If it's off market and you know what you're doing then you don't need an agent." isn't what I said.

I said if it is LISTED in the MLS etc/

@Steve Vaughan You said what I meant l-)

Account Closed · Answer

@Christopher Phillips I'm talking about when I am BUYING off of the MLS. I would NEVER have a listing agent involved on both sides of the transaction. Conflict of interest. If the seller and listing agent won't forgo the 3% buying agent's fee, there isn't a sale and I walk. Works every time. Nothing personal, there are people who need agents. I don't.

Account Closed · Answer

@Christopher Phillips Account Closed I echo Tim's observation. He clearly understands the actual economics underlying buying and selling properties.

"Yes, pure semantics, the buyer cut a check for the house.

When it involves $18,000 of additional fees and costs, of MY money, it ain't semantics. ;-)

But the seller's closing costs will be the same if there is a listing agent involved with or without a buyer's agent." This Statement Is Not True - I don't EVER use an agent and I get the agent's fees (price reduced) removed all the time - I act as my own buyer's agent. I haven't had a seller yet who said they wouldn't sell just because I am not an agent and don't have an agent.

Account Closed · Answer

@Christopher Phillips Your argument is about like me hiring a roofer to reroof my house and he gives me an estimate that includes all materials. I then proceed to tell everyone that the shingles on my house were free to me. The money has to come from somewhere in a real estate transaction to pay the agents. Agents say that it comes from the seller which is technically true on the closing statement but it also shows that the funds it is being withdrawn from come from the BUYER. No sane person can argue that agents aren't getting a piece of the pie. In reality, their pie probably comes from both halves.

Steve Vaughan · Answer

I buy solo as well and simply offer 3% less or require 3% back for closing costs.

I state that I will remain unrepresented so long as my offer is not countered. I receive a 3% discount. No way a buyer's agent is 'free'.

That said, If you are new - a quality buyer's agent can be worth much more to you than 3%. Just don't think they cost you nothing.

Russell Brazil · Answer

As a buyer you typically pay zero to the agent. They are paid by the seller, so you won't be saving any money. Instead the listing agent will make double.

Account Closed · Answer

Account Closed Nailed it! My kinda guy.

Christopher Phillips · Answer

Account Closed

I agree with you 100%, Ken.

If it's off market and you know what you're doing then you don't need an agent.

Christopher Phillips · Answer

Account Closed

I specifically stated when a listing agent is involved.

Obviously, if you sell it on your own an agent isn't involved.

Realestate agent needed for a cash offer on a flip?

Realestate agent needed for a cash offer on a flip?

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