All Forum Posts by: Account Closed

@Henry Cervantez please let me know if I can be of any help to you. I have Costar and am Director COMMERCIAL Division at Tru REALTY. Twenty years in the business and worked as the Managing Broker for DPR Commercial for almost four years.

Originally posted by @Carrie Giordano:

@Account Closed like I mentioned in my previous post, when I sold my last property I did find quite a bit of value in my realtor. She was smart, hard working and knew the market. Unfortunately, prior to working with her our buying agent was awful. Perhaps, if we had had our selling agent at that point I wouldn’t even have posed the original question.  You seem to love what you do and are very educated so I’m sure your clients see your value.

However, having mls & property access as well as saving a significant amount of money is certainly worth considering. 

 @Carrie Giordano it absolutely makes sense to investigate your options.  That said, I've been able to be my own Designated Broker for 18 years now and I have never chosen to be "on my own" for many reasons, including a layer of liability protection.  I fully believe the cons outweigh the pros, especially if you want deals in a competitive market.  You have to have connections with agents who have connections with big wholesalers, etc.  Do you really think the GOOD deals just go to market?  Nope, they have a network, like Jay above said.  It's hard for agents to get in that network let alone a newbie investor, forget it.

Originally posted by @Michael R.:

When it came time to list the last two wholetail deals and one flip we sold this year, we used a flat-fee listing service.  The cost was $99, we chose a 2.5% buyers agent commission, uploaded 6 pictures and handled the showings ourselves via the Showing Assist app.  The process was incredibly easy and all of them had a similar time-on-market and percent of list price to the sales in those areas represented by an agent.  @Account Closed I'm fully aware that you aren't an attorney but do you see any issues with this approach from a liability perspective?

My partner and I find that this, along with having an investor-friendly agent for the buy side, is a great way to save some cash without obtaining/maintaining a license.  

Hi Michael! I used to live in Barrington IL, small world. Great question. I'm trying to give real answers and not just the obvious you should use a good agent ones... that said, flat-fee listing services offer you only one thing and that is MLS access. They do NOT reduce (imho in AZ) your liability, they do absolutely nothing. They, in fact, don't even list the property well, from what I've seen. Also, by not paying a buyer's agent 3% you (depending on the market) may NOT be doing yourself any favors. Although agents shouldn't consider the co-broke when showing, they are human and they do. I always do and how I handle it is by reaching out to the listing agent BEFORE I show and telling them that I work for 3% and asking if I brought them "an acceptable offer" if they would consider paying my brokerage 3%? Any SMART agent says yes, since who knows what a reasonable offer is? In other words, just build it into the sales price for the buyer to pay... net the same to the seller, only no disadvantage potentially to the listing/seller in extended market time.

That said, to me the largest liability is one of lack of disclosure and buyer's are the ones who tend to sue according to my research.  That said, it's worth it to protect yourself.  In addition, when you use a "real agent" vs a flat fee that agent/brokerage has liability and you have a company in the game.  I want to have someone professional to hold accountable if needed or determined to be appropriate.   It's why I hire an attorney at times, in situations.  It's why I consult other broker's and the department's legal hotline (for Designated and Managing Broker's only).  It's why I have obtained additional education, it's why agents come to me with questions and love my answers and help (see my LinkedIn reviews).  

My primary goal is HELPING people. Find an agent who is motivated to HELP and being an expert in their field and you will readily see the value in paying for such expertise and how you will make more money by doing so and have less stress! Btw, if anyone wants help finding a good agent in their area I can research and connect you. I know there are bad agents, so find a GOOD one and change your perception. Also, if you are set up on a very general MLS search you will get all the listings immediately just as agents do. Again, if you have a REALTIONSHIP built, that agent will jump through hoops to get you into properties right away and better yet help you find off-market deals you might not get otherwise.

@Jay Hinrichs yes, she is!  Funny.  Yeah, we got it in the shorts for sure.  I just sold a 4 plex for $320k.  Yep!  You are definitely an exception and I guess most people just see dollar signs and can't see what we see and know with hundreds of deals under our belts.  It's funny because a smart investor in my mind partners with a quality agent and there is loyalty on both sides.  This is beneficial in many ways and that commission spent will come back to the savy investor with more deals coming their way, less liability and more focus on their highest and best activity.  I have sold several attorney's homes recently all of which wouldn't even consider doing a deal on their own, so it sort of shocks me when your average person does... :)

@Carrie Giordano I guarantee you it is not legal to represent yourself AND the buyer as an agent/Broker. If you are unlicensed, that's different. Although, this just further illustrates the problem. A good agent would know that they can make the whole commission and ONLY represent one party. I, personally, refuse to represent both parties. I'm unable to do my job if I do. Since the way the Exclusive Right to Sell is written pays me regardless of representation there is ZERO reason to hugely increase my liability. I just closed a property I got full commission on and the buyer's chose not to have an agent (I reduce commission some to my seller if I sell it myself, this gives them incentive and I tell this to the buyer). I give the buyer the option to have representation (they historically decline to "get the deal" they think). My liability is minimized and everyone is happy. If you represent both sides and there is a suit you will pay your E&O deductible twice, btw. Representation is NOT tied to Agency. I teach this and trust me, MANY agents don't understand Agency either. It's crucially important, though. I'm also a GRI, Graduate of the Real Estate Institute. If you want a real education this is what you want. Real Estate school will only teach you incorrect info to pass the state test (at least in AZ), I teach it so trust me on that!

@Carrie Giordano an agents value is not in finding the deal, at least not always. If you only see that, then it's even more important not to become an agent!

@Tairsa Mathews exactly.

@Sam Shueh I just became a Redfin partner and actually they do not offer a rebate for the buyer. They also charge the agent 30% on listings. Not the way to go. West USA or HomeSmart would be companies to read what their ICA and E&O policies say. Many (CRES) won't cover an owner/agent unless they provide a home warranty and jump through other hoops. Then there's the deductible if you get sued, I've seen up to $10k in AZ.

@Russell Brazil smart.

@Jay Hinrichs you and your wife are definitely exceptions. You mention material defects, E&O, umbrella policy, etc. The problem is that it takes lots of years of experience to even comprehend being a seriously good agent, rarely do I meet an investor agent who is an actual GOOD agent. Your volume makes sense and your level of expertise all speak to it making sense for you. I'm extremely responsive as an agent and my investor clients get the value I bring and my connections. Ultimately, it's a dangerous game for 99% of the investors out there in my opinion. Increasing liability in this business is the opposite of what I work for every day!