What is better when purchasing a home?

Question

I would like to buy a home to flip it but I was wondering if it's better to buy a house from a realtor or directly from the owner.

Answer 1

You are ALWAYS buying from an owner, so the realtor will not be charging you a fee, period. This is a "buyers realtor" and they CAN come in handy for finding a bargain. The realtors do not OWN the house, and the only person who pays the realtors are the sellers. Seriously, call one and ask.
Try looking more into foreclosures and police auction housing.
Just dont SELL through a Realtor. Then you have to pay whatever percentage you are contracted to.

Again, BUYING can be done THROUGH a realtor, and there are no fees.
SELLING means the SELLER (the owner) is paying realtor fees, not the buyer.

One thing to be aware of is how property values are. Keep track of the stock market, and network with accountants and realtors, to get as much information as you can. Right now, the real estate business where I live is about to crash back down to reasonable pricing.. and its probably going to be that way in most places, so wait at least 6 months before purchasing anything. The real estate market is not always a profitable venture, thats why I suggest you go for foreclosures, and auctions, first. (sometimes you can go down to your tax appraisers office and pay the delinquent taxes on someone elses house. You have to wait a few years, and if they end up paying the taxes, you get a high interest yield, like 10% or something, but you could also get the home too. That DOES mean that you would be responsible for the balance on the mortgage, of course, so look for undeveloped lots, first, to get started, and find like minded people to help you figure out the best investments..)

Answer 2

Usually it is the seller who pays the commission to the realtor, not the buyer. If the seller does not use a realtor and passes the savings on to you, it would be best to buy from the owner. A lot of times someone will not use a real estate agent but still asks as much for the house.

Answer 3

I've never flipped, but I think you would be better off buying directly from the owner, as you could get it cheaper (especially if the house is in need of repair) and you wouldn't have to pay the Realtor a commission.

Answer 4

Buy from the owner and skip commission that the a realtor tacks on. Be careful when doing a flip make sure that you hire a qualified inspector. They go for around $250 (+/-more depending on the area you live in) but well worth the investment so as to determine your purchase and investment budget and not get in over your head so to speak. Good luck!

Answer 5

I'm a buyer's specialist, and I don't list many. That said, listing is serious work, and especially in a buyer's market like now, the odds are you will be happier if you pay the fees for a full service agent. Discounters and FSBOs just have no clue how to get a good price in the current market. Either they are overpriced, and get no offers, or if they are priced appropriately, they have no idea how to market or negotiate effectively.

And if you're across the table from a good seller's agent, don't you want someone just as strong on your side? Especially since the way listing contracts work, the seller's agent gets both pieces of the commission if you don't have an agent?

Answer 6

The involvement of a realtor will likely involve a commission. A direct purchase would not involve a commission. Though, having a realtor work as your advocate, even with a fee, could be beneficial to your negotiations. Best of luck!

Answer 7

I would go with a realtor. They know the ins and outs of the business, can find you the best home for your $ and can make sure you're not buying a house with hidden problems.

A really good website to browse local real estate/real estate agents is: http://www.idxbroker.com/news/256_IDX,_Inc._Introduces.php

just click on your state and you can check out local agents and homes.

It's really easy to navigate and is full of info about realtors with links to their personal websites. I would check out the "feature" agents. They will be your best bet for finding an expert who still has some integrity. Hopefully that works for you! Good Luck!

Answer 8

Wish there was a good answer to this. If the house is already listed, you don't have a choice but to pay her 3.5 percent on that (assuming you don't use one to buy.)

If the house is FSBO (For Sale By Owner) and overpriced, you have not saved any money.

So your decision is more about how low you can get it for and not how it is listed.

*Generally* houses worth flipping are "distressed" and sold in sheriff's sales, tax sales or foreclosures.

Be careful that you live in an area where houses are steadily increasing in value before you try to flip one. People are watching these shows on TV and think they can make $50,000 in two weeks.

It only works that way in very special situations and the shows don't show the people who have lost their shirts doing it.

Answer 9

It's a trade off.

You will almost always pay less buying an FSBO home (for sale by owner), but there is always a much higher risk of a contract dispute.

Realtor contracts are designed and developed by your local realtor's association, so they are very tried and true. But alas, convienence is expensive.

Answer 10

You can do it on your own. After our last experience with a realtor, we will not use one again. They are not worth the 3%-6% they get in my opinion. As long as you have the correct paperwork, you can fill it out and do negotiations yourself. Even with a realtor, the buyer & the seller ultimately make the decisions.