Do you always use a Real Estate agent for purchases?

Rental Property Investor · Austin, TX · Member since 2021 · 36 posts · 28 votes

We own two STR properties and a commercial property and are looking to buy our fourth property. We found the home we want to purchase, it's new construction already completed and we know the market and numbers work. We are questioning whether or not we need to work with a realtor at this point. We are architects and have inspected the property, deed restrictions etc. Feels like they wouldn't be a value add. The seller is also not using a sellers agent. At this point the paperwork would be minimal to get under contract, we are good with the price we have already negotiated. Thoughts?

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John UnderwoodPro Member

Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes

I buy and sell without a realtor whe ever possible.

When selling I pass the realtor fee not used to the buyer.

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Scott TrenchPro Member
Rental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
3y
The seller traditionally pays the buyer agent, so there is usually no reason to not use an agent on the buy side.
One possible benefit is being able to negotiate a better deal with the seller.
If you are interested in not using an agent and representing yourself/your business, why not just get licensed? It's not a prohibitively big lift to get licensed, and may pay you back multiple times.
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Conner Olsen
Real Estate Agent · Austin, TX · Member since 2020 · 1k+ posts · 941 votes
3y
Quote from @Account Closed:

We own two STR properties and a commercial property and are looking to buy our fourth property. We found the home we want to purchase, it's new construction already completed and we know the market and numbers work. We are questioning whether or not we need to work with a realtor at this point. We are architects and have inspected the property, deed restrictions etc. Feels like they wouldn't be a value add. The seller is also not using a sellers agent. At this point the paperwork would be minimal to get under contract, we are good with the price we have already negotiated. Thoughts?

When you're going new construction, you don't need to use an agent. If you found the house you want and are ok with the process then go for it. If you are still browsing then an agent will have more insight into the new construction market. I get multiple emails a day from new construction around Austin giving concessions and deals not broadcast to the general public.
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Account Closed
OP
Rental Property Investor · Austin, TX · Member since 2021 · 36 posts · 28 votes
3y
Thank you for the responses. We have contemplated getting licensed but we are looking to make this purchase pretty quickly so don’t think we have the time this round.
We are thinking that given the seller traditionally pays the buyers agent we may be able to get the price down 3% if we don’t have an agent - seems worth asking.
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Jeff Langley
Member since 2021 · 167 posts · 141 votes
3y
Quote from @Account Closed:

Thank you for the responses. We have contemplated getting licensed but we are looking to make this purchase pretty quickly so don’t think we have the time this round.
We are thinking that given the seller traditionally pays the buyers agent we may be able to get the price down 3% if we don’t have an agent - seems worth asking.

Certainly ask, I did in the Denver market. Lennar(the builder) wouldn’t budge, so i brought an agent in and negotiated an ever better “deal”.
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Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes
3y
Recommend you go with a buyers broker. Use yours. Since they don’t have a seller broker you will need to pay around 2%. If they had a seller broker then it would be free for you to have buyer broker. And your broker would thank you.
Are they using a Title Company? Who will hold the funds while title clears?
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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y
I buy and sell without a realtor whe ever possible.
When selling I pass the realtor fee not used to the buyer.
5 Reply
Leslie Anne Morris
Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
3y
In this case you probably don’t need one. You could have an attorney review contract documents if the builder is using forms outside of typical state contracts.
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Account Closed
OP
Rental Property Investor · Austin, TX · Member since 2021 · 36 posts · 28 votes
3y
Quote from @Henry Clark:

Are they using a Title Company? Who will hold the funds while title clears?
We would still use a title company, just no realtor. I was wondering if local agents have better access to hood title company, not sure if it matters. What are the benefits of using a Broker agent vs a realtor? Hadn’t considered this.
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Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes
3y
Buyers agent. Still a realtor. I like going through our realtors because they LIKE me better. Better relationship. All three of our realtors have brought me deals. I owe them
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Manny VasquezBusiness Member
Real Estate Agent · Orange County · Member since 2022 · 317 posts · 293 votes
3y
My recommendation is a little biased since I am an agent, but I would like to say that "buying new" does not mean buying in "perfect condition". One thing to remember is that the builder is also a "salesman" and does not get paid on his newly built home until the close of escrow. He may take whatever building/repair shortcut or say whatever makes you happy just to offload the property and get his escrow check. Since you are the buyer, work with a Buyer's agent. Have the Seller pay the Buyer's Agent, which could be negotiated in the deal.
Just because the Seller is not using a listing agent DOES NOT mean the seller will pass on those savings to you. Often times, buyer's fall into the false belief that they are getting a "better" deal because the seller is not using an agent. Buyer's falsely believe that the Seller will be ethical and looking out for their best interest. Nothing could be further from the truth.....in many cases, the Seller is looking to fill his/her pockets as fast and as deep as possible. Critical information about the property, which may sway you away from buying, may be withheld just to offload the home. If the Seller does not have a listing agent or does not want to pay for one that is ok. However, you as a Buyer should definitely use a Buyer's Agent. Now that we are in a balanced market, which is leaning more and more towards a Buyer's market, have the Seller pay the Buyer's Agent which is negotiable.
Your Buying Agent will provide added protection in the following areas (to name a few):
- Extra research on the property/neighborhood/area and advise you on any findings that may be adverse to your goals
- Will provide an extra set of eyes on the deal. This is to make sure you are getting a fair deal and the seller doesn't pull a fast one on you
- Will provide an extra set of eyes at the time inspection.  If there are repairs to be made, the buying agent will get confirmation of the repairs in writing.
- Help you navigate through any escrow issues that may come up during the buying process (Again, buying new properties does not mean perfect deals...these new properties can have a slew of issues come up during the escrow process.)
-The agent should be looking out for your best interests throughout the whole process. Since you have purchased multiple properties in the past, I would recommend you work with one of the agents that you have bought with before.
I hope the above helps and good luck!
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Account Closed
OP
Rental Property Investor · Austin, TX · Member since 2021 · 36 posts · 28 votes
3y
Thank you for the thoughtful and detailed response Manny. For us as Architects we work with builders all the time and have in depth knowledge of construction beyond what a realtor knows so we aren’t worried on that front but your post gives me a lot to think about, thanks!
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Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
3y
@Account Closed mentioned you don't have to but we get data that you won't. On a recent new build deal I was able to get my clients added incentives the builders weren't advertising publicly but were emailing to agents.
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Manny VasquezBusiness Member
Real Estate Agent · Orange County · Member since 2022 · 317 posts · 293 votes
3y
@Account Closed - you're very welcome April! As a former engineer myself, I totally know what you mean. Good luck!
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Curtis Mears
Property Manager · Raleigh, NC · Member since 2014 · 728 posts · 596 votes
3y
@April C.
I have brought several properties without an agent. I have an attorney I use and he is able to cross the t's and dot the i's.
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Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
The seller is paying the commission anyways, might as well split it with a realtor.
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Dan H.Pro Member
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
3y
My view is inexperienced people with RE purchases should use an RE agent on every RE transaction.
Experienced RE investors should use an agent on purchase if the seller has an agent and would get double representation if the buyer did not have an agent. Let your agent represent you as you would not see the buyer's agent commission regardless.
Experienced RE investor off market with seller not using an agent does not require the use of an agent. My last 4 purchases were without agent. 3 were purchased direct from seller with no other party, 1 had a bird dog that we paid $5K over agree finder's fee because of extra effort involved and because it was a great purchase. The seller ended up stiffing the bird dog of what they had agreed to pay the bird dog. I have mixed feelings as the bird dog had not communicated to me that the seller was also paying the bird dog. However, I do not know if he was obligated to do so, I like the bird dog and he did a good/great job, and it really does not impact my side of the purchase. The seller ended up not being happy with the sale which may have played a role in him stiffing the bird dog (bird dog is on BP). Some of this was a result of the seller requesting a slow close (so he would not need to rent back) in which prices rose significantly.
Good luck
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Joe Norman
Property Manager · Baltimore, MD · Member since 2014 · 1k+ posts · 1k+ votes
3y
A lot of people are assuming that the "seller will pay the buyer's agent" but that isn't always the case, ESPECIALLY when the seller is unrepresented (and therefore the property isn't listed on the MLS with a clear, publicly stated co-op agent commission). Another factor is that you've already gone way down the path of viewing theme and negotiating numbers, and so if you brought an agent on now they may not be considered the Procuring Cause.
As for whether or not you should bring on an agent to represent you, I would say that depends on how much experience you have doing deals. If you're comfortable with doing it yourself go for it, however if you have any uncertainty (and it sounds like you do) then I'd get representation (but, again, don't assume the seller is paying for it).
Good luck!
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Leora Merrell
Rental Property Investor · Member since 2019 · 276 posts · 235 votes
3y
Quote from @Account Closed:

We own two STR properties and a commercial property and are looking to buy our fourth property. We found the home we want to purchase, it's new construction already completed and we know the market and numbers work. We are questioning whether or not we need to work with a realtor at this point. We are architects and have inspected the property, deed restrictions etc. Feels like they wouldn't be a value add. The seller is also not using a sellers agent. At this point the paperwork would be minimal to get under contract, we are good with the price we have already negotiated. Thoughts?
We’ve bought several without a realtor. Just worked directly with the title company. Sounds like you have your ducks in a row to go without one. Ask the seller to split or discount the would be commissions in your purchase price. Win-win. A realtor would not be beneficial to you in the situation you described, in my opinion. You and the seller could save some money. :)
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Frank Greg
Lender · rate.bid · Member since 2022 · 324 posts · 62 votes
3y

The real estate agent is likely involved at a minimum on the seller's side unless property is being sold by owner. Rarely use a realtor to buy though but obviously not advising buyer's to not use a realtor especially since some seller agents can be a thorn. If involved in an out of state transaction certainly can benefit from having a realtor on the ground.
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Account Closed
OP
Rental Property Investor · Austin, TX · Member since 2021 · 36 posts · 28 votes
3y
Quote from @Leora Merrell:

Quote from @Account Closed:

We own two STR properties and a commercial property and are looking to buy our fourth property. We found the home we want to purchase, it's new construction already completed and we know the market and numbers work. We are questioning whether or not we need to work with a realtor at this point. We are architects and have inspected the property, deed restrictions etc. Feels like they wouldn't be a value add. The seller is also not using a sellers agent. At this point the paperwork would be minimal to get under contract, we are good with the price we have already negotiated. Thoughts?
We’ve bought several without a realtor. Just worked directly with the title company. Sounds like you have your ducks in a row to go without one. Ask the seller to split or discount the would be commissions in your purchase price. Win-win. A realtor would not be beneficial to you in the situation you described, in my opinion. You and the seller could save some money. :)
That’s what we are leaning towards. I think we will work with an attorney on the contract and try to negotiate a bit more. We have gotten the builder down quite a bit already compared with adjacent market prices. He builds one offs- not a volume builder so I don’t see him marketing to realtors. We saw a sign on the house driving by. Appreciate the feedback here.
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Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
3y
Quote from @Account Closed:

We found the home we want to purchase. We are questioning whether or not we need to work with a realtor at this point. We are architects and have inspected the property, deed restrictions etc. Feels like they wouldn’t be a value add. The seller is also not using a sellers agent. At this point the paperwork would be minimal to get under contract, we are good with the price we have already negotiated. Thoughts?

You've done all the work sourcing , pricing, CCRs, negotiation and you have experience.

The seller doesn't have an agent/ it's not listed so no commission wasting on the table or need for you to get a buyer's agent 👍
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Brent Boltz
Member since 2019 · 2 posts · 3 votes
3y
Realtors are a dying service. No need for them to stand there with their hand out ready for a paycheck.
2 Reply
Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
3y
I always use a real estate agent when I purchase properties. Real estate agents are necessary, you can't do it without us........
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Bud Gaffney
Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
3y
No
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Steve K.
Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
3y
Quote from @Brent Boltz:

Realtors are a dying service. No need for them to stand there with their hand out ready for a paycheck.

Lol you are funny. The numbers beg to differ... there more active real estate agents today than ever before: 3 million active licenses in the US, about half of which are Realtors (a trademarked term that refers to an agent who is a paying member of the National Association of Realtors (NAR), the largest trade association in the US). Numbers of new licenses have been increasing rapidly over the past several years, not decreasing. Just because we have X-rays and MRI's doesn't mean we don't need doctors, just because we have Legal Zoom doesn't mean we don't need lawyers, and just because we have Zillow and Redfin etc. doesn't mean we don't need Realtors (and actually these sites couldn't exist without Realtors, we are the ones inputting the listings/data that they use after all). Sure many people buy or sell without representation, it's definitely doable but in many of these cases buyers and sellers without representation leave money on the table without even realizing it, or end up in litigation when the deal goes off the rails due to mistakes that were made which could have been avoided by using a professional. I see it all the time and get calls nearly every week from someone who chose to go it alone and screwed up, usually asking about how to sue the seller for failure to disclose when they actually failed to do their due diligence as the buyer, complaining about how they got screwed by someone when they really just made a rookie mistake etc. Most people think they know everything about real estate because they have the internet when they really just know enough to be dangerous. Not all agents bring value to a transaction and earn their commission on every deal of course, but the good ones definitely do and there will be a role for them long into the future without a doubt.
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