Want to Look at a House - How Should I do it?

Question

Hello All,

In learning/DD stage getting ready for my first ever deal (2b a renovate & sell). I want to kick the tires or window shop a little bit on a short list of what would be potential deals for me if I were trying to buy today. Just to get my feet wet in a walk through, test out my rehab estimator, generally get the feel for that step and start to fine tune my processes. They are all mls listed.

What is the proper way I should go about this? Should I just call the listing agent and say I am a soon-to-be investor and I'd like to see the home? Should I not bother volunteering any info and just call and say I'd like to see it? Technically speaking these home are potential buys since Im only about two weeks away from being ready.

I've had no contact with any agents as of yet. Would it be better to choose a potential buyer agent and ask them to contact the listing agent for a viewing? I know I'm not likely to buy a propoerty right now and its important to me to look at a few first before I switch into buy mode (which will be after Im set up with my financing).

Any advice would be appreciated!

Mike

Eric Thomson · Answer

Mike B., I would definitely recommend finding your own buyer's agent to work with you and show you properties. As a buyer this is not going to cost you anything and you will have somebody representing your best interests, as opposed to playing intermediary between you and their seller. It is also good to build that relationship because your agent will keep you in mind in the future when they come across another great deal. Good luck on your first flip, and keep us posted on how it turns out!

Jon Holdman · Answer

Agents will generally want to be sure you're a serious buyer before they go through the effort of sitting up showings. OTOH, if you find a new and hungry buyer's agent, they might be willing to help you. If open houses have started in your area, I'd encourage you to visit those. Those are usually pretty houses rather than ones you might use as a starting point for a rehab. But its a great way to start getting ideas of what the market is doing. I'd also encourage just pulling up listings and start driving. When I was evaluating an area, I'd drive up and down every street. And do it at different times of day. Have a look at the for-sale houses. If they look empty, go up and peek in the windows. If there are rehab projects going on, stop and try to chat up the people there. Not all will be willing to talk, but its a way to meet some folks and see what they're doing.

Mike B. · Answer

@Jon Holdman - i get having my money all lined up before i am actually ready to buy. This will be done in about two weeks. I am in a good position financially speaking. From a learning, education, and experience standpoint, i wanted to just go and look at some properties - see some potential rehab scenarios and run through my spreadsheets to see if Ive covered everything I saw "in the field". Most importantly, just going through the experience. What im reading from your message is that i cant even look at a property, a standard mls listing, or that i shouldn't bother trying right now? I just thought it would be a good exercise.

Jon Holdman · Answer

Have your money lined up. Whatever combination of bank statements and pre-approval (no pre-qualification) from lenders. Both buyer's agents and listing agents will want to be sure you're actually serious about buying something and that you have the ability to close.

Mike B. · Answer

A little bit of a catch 22 I guess...

Eric Thomson · Answer

Mike, If you are concerned about, in some way, burning a bridge by having your buyers agent show you a bunch of properties that you aren't going to buy, there's nothing wrong with contacting the listing agents, imo. If you do end up wanting to buy one of those properties though, you will need to work with the listing agent instead of having your own representation.

Mike B. · Answer

Thanks Kelly and Eric. I do want to establish a relationship with a buyers agent that i hope develops into him or her representing me for the long haul. Eric - yes I am looking in the Richmond area. It sounds like there is nothing wrong with calling the listing agent for these first few looks as I do my DD on a buyer agent and get closer to an actual purchase? Thanks again, Mike

Kelly N. · Answer

Hi Mike, I started out by calling the listing agents on homes I wanted to see, there are some agents that will show you the house. One agent I contacted put me in touch with the buyer's agent form their office and I have been using him ever since. If you are looking in a specific geographic area, find a buyer's agent that works in that area. I think most agents expect you to kick some tires before settling in on making an offer- I looked at about 10 houses and made offers on 2, bought one. The next go around we looked at 3 houses and we're buying one (would have bought a second but it sold before we could decide). Anyways, if you find an agent you like it can help narrow down your search, as will your experience. The second house we are buying was one he found for us. Take good notes on all houses, even the rejects, since you never know if they'll lower the price or just be willing to take much less than what they are listed for. Good luck! Kelly