Off Market Purchase - Seller Requested No Realtors

[Cole Leonida]

Hello everyone. My wife and I have been looking for our first flip in Denver and it has proven to be a challenge to find a good deal. We have recently come across a potential deal with a neighbor that is looking to sell their home, as is, for a big discount. I have used the BP fix and flip calculator to determine it is a good deal and definitely worth pursuing. The seller has requested that no Realtors be used, for the obvious reason of saving a few bucks. We are prepared to purchase it as is and we have already had our contractor (whom we trust very much) walk through the property and determine it is likely a lipstick rehab. I have read several old forum posts about purchasing without a Realtor and I have noticed many real estate agents caution against it for one reason or another and then it seems investors, particularly experienced ones, say its no problem to purchase without a Realtor. 

I have a few questions:

1. 1. What are the major concerns in not using a Realtor on either side of the transaction and is there any way to help avoid them?
2. 2. What are the necessary steps from the buyer's perspective in this type of situation?
3. 3. Is there a good place to find purchase contract templates to use?
4. 4. Do you have personal experience in a similar situation that you could share with us?

As always, thank you in advance for your insights!

-Cole

[Corby Goade]

You can take what I say with a grain of salt, since I'm an investor/realtor, but I hear stories like this pretty often. Essentially- "I don't want to pay a realtor, they're worthless, but I don't know what I'm doing, so can someone help me do what a Realtor would have done, except for free?"

A realtor (at least a good realtor) does more than protect you and push papers. A good realtor will find you leverage where there is none. They'll protect your interests and make sure the transaction closes smoothly, legally and in the way and within the terms that you agree upon. What would you do if you get a couple days before closing and the seller changes their mind? How would you protect your interests? What if you discover a body in the crawlspace or an easement through the front yard?

If you and the seller have already agreed to terms and you aren't sure how to proceed, honestly, you need a Realtor in some capacity. I'd ask friends and family for recommendations and see if you can find a quality realtor who will take care of all of the paperwork and transaction management for you for a flat rate. Maybe you pay it out of pocket, maybe you split it with the seller. It certainly doesn't have to be a 6% commission, but there is value in those services- that's why you are asking this question in the first place. 

Food for thought- I work with lots of very wealthy investors. They don't think twice about having representation in a deal- they have a team that they trust to do their jobs and take good care of them. I also talk to lots of tire kickers who think they can handle everything, but most of them never really get anywhere because they don't build and value their team. 

In any occasion, best of luck, hope you get yourself a great deal here!