Do I really need a realtor to buy a MFH in DC?

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Do I really need a realtor to buy a MFH in DC?

Quincy Jallah
Investor · East Coast · Member since 2017 · 11 posts · 3 votes

I am looking to purchase my third property under the house hacking model. This place is in Washington DC and I've lived in the are for a few years. 

I have been slogging through lenders and I have finally found two companies that can cater to the type of mortgage and funding that I need. I am expecting a pre-approval letter today. Luckily there are 3 properties currently available that I would be happy to match the listing price with an offer today.


About me: I own a SFH And (2) multifamily properties that I used realtors to buy. I have the energy to do the legwork on closing this deal and the acumen to at least research things I'm not intimately familiar with (legal training outside of real estate). I'm not an expert but I'm eager to learn and I am capable of actual legal research beyond google. The only reason I am considering this is to save the seller money in the hopes that my offer will be more enticing. I understand I will have to deal with the seller's agent, title company, lender, and district assessor's office (deed work). It's my first post so forgive me if I'm unclear or crass. Posting this in multiple forums.

Question: What am I missing? Given the very brief overview, are you cautious about foregoing a realtor in my buying process? Interested on your thoughts.

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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    5y

    Why would you go unrepresented if the seller paying the commission for the realtors? If it's off market than I understand not using one. If the realtor is a rock star use them again

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    5y

    Do you know if the multifamilies you are looking at are legal? What type of financing are you using? If it is FHA, do the properties meet the FHA self sufficiency test? Do you know how to go through the TOPA approval process?

    Only 200 multis trade per year in the entire metro area.  Most agents dont even know what they are doing when it comes to multifamily.

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  • Quincy Jallah
    OP
    Investor · East Coast · Member since 2017 · 11 posts · 3 votes
    5y

    @Caleb I'm at the top of my budget and need to cut costs. The fact that the commission comes from the seller is exactly why I'm doing this. The market is booming here and I need to stand out with my offer. The seller will see the savings of not paying a buyer's agent and hopefully deal with me. I'm obviously hoping I won't be creating a headache for the seller as I navigate the closing process alone. (Not my first but it is my first unaided)

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    5y
    Originally posted by @Quincy Jallah:

    @Caleb I'm at the top of my budget and need to cut costs. The fact that the commission comes from the seller is exactly why I'm doing this. The market is booming here and I need to stand out with my offer. The seller will see the savings of not paying a buyer's agent and hopefully deal with me. I'm obviously hoping I won't be creating a headache for the seller as I navigate the closing process alone. (Not my first but it is my first unaided)

     There is no commission savings for the seller. The entirety of the commission belongs to the listing agent. When a buyer has a buyers agent, the listing agent will share a portion of their commission with the buyers agent typically to help faciliate the sale of the property. (though not always)

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  • Quincy Jallah
    OP
    Investor · East Coast · Member since 2017 · 11 posts · 3 votes
    5y
    Originally posted by @Russell Brazil:
    Originally posted by @Quincy Jallah:

    @Caleb I'm at the top of my budget and need to cut costs. The fact that the commission comes from the seller is exactly why I'm doing this. The market is booming here and I need to stand out with my offer. The seller will see the savings of not paying a buyer's agent and hopefully deal with me. I'm obviously hoping I won't be creating a headache for the seller as I navigate the closing process alone. (Not my first but it is my first unaided)

     There is no commission savings for the seller. The entirety of the commission belongs to the listing agent. When a buyer has a buyers agent, the listing agent will share a portion of their commission with the buyers agent typically to help faciliate the sale of the property. (though not always)

     I didn't know as much as I thought I did. Thank you for that nugget. What do you reckon happens when the buyer's agent doesn't get a split. I'm certain it's rare.

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