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MJ DeMarco
I followed the science; all I found was money.
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I'm happy to announce that I bought a house today and got a steal of a price -- 25% discount and under assessed tax value! I plan to live there for 1 year while my primary residence completes its remodeling/pool project - which has gotten out of control.
I got the deal primarily because I WASN'T working with a real estate agent - which i never do.
First a disclaimer: This is not an attack on real estate agents as I know there are a few here. This is my opinion on WHY I don't use an agent. Second, this is based on my experience as a buyer and seller of real estate; not as a full-time "investor".
Why I Never Work With a Real Estate Agent
In the past 10 years, I've bought and sold various properties from homes to land, and I've NEVER used a real estate agent, w/exception to the first home I ever bought.
First, on the sell side. I always sell By Owner (FSBO) and pay a listing service to drop the property in the MLS. Then I offer the buyer agents a fee if they bring a buyer -- from 2% -3%. The caveat is you have to be home to show the house, or, put the house on your own lockbox (which can be purchased at any Home Depot).
I buy the standard contracts and do them myself.
On the buy side, I troll neighborhoods I want to buy/live. I call the agent and ask for a showing. I line em up one after another! Now, since I am not represented by an agent, I have some negotiating power to get a lower price since the 3% is saved in buyer agent commission OR the selling agent is motivated because he thinks 6% is coming his way.
Prior to trolling neighborhoods, I search the web for properties. In the age of the internet, you now have access to MLS listings which was once a sacred ground for Realtors. Not any longer.
I used in my search:
1) Realtor.com
2) Craigslist.com (Distressed)
3) RealtyTrac.com (Distressed)
4) Maricopa.gov (Check Neighborhood comps / Tax bills)
I was able to get a contract due to the fact that I was NOT represented by a real estate agent - the seller (which was FSBO and offering 4% to buyer agents) was FREE from paying commission to anyone.
I was told later that my offer wasn't the best; but since I didn't have agent representation, I got the deal. The seller netted MORE since all agents where removed from the transaction.
My competition on the property was working with agents costing the seller thousands - hence, they didn't get the deal. Every dollar counts to a motivated seller.
Remember, 3% on a $1,000,000 home is $30,000 -- what can you do with $30K?
A lot!!!
:eusa_clap:
I got the deal primarily because I WASN'T working with a real estate agent - which i never do.
First a disclaimer: This is not an attack on real estate agents as I know there are a few here. This is my opinion on WHY I don't use an agent. Second, this is based on my experience as a buyer and seller of real estate; not as a full-time "investor".
Why I Never Work With a Real Estate Agent
In the past 10 years, I've bought and sold various properties from homes to land, and I've NEVER used a real estate agent, w/exception to the first home I ever bought.
First, on the sell side. I always sell By Owner (FSBO) and pay a listing service to drop the property in the MLS. Then I offer the buyer agents a fee if they bring a buyer -- from 2% -3%. The caveat is you have to be home to show the house, or, put the house on your own lockbox (which can be purchased at any Home Depot).
I buy the standard contracts and do them myself.
On the buy side, I troll neighborhoods I want to buy/live. I call the agent and ask for a showing. I line em up one after another! Now, since I am not represented by an agent, I have some negotiating power to get a lower price since the 3% is saved in buyer agent commission OR the selling agent is motivated because he thinks 6% is coming his way.
Prior to trolling neighborhoods, I search the web for properties. In the age of the internet, you now have access to MLS listings which was once a sacred ground for Realtors. Not any longer.
I used in my search:
1) Realtor.com
2) Craigslist.com (Distressed)
3) RealtyTrac.com (Distressed)
4) Maricopa.gov (Check Neighborhood comps / Tax bills)
I was able to get a contract due to the fact that I was NOT represented by a real estate agent - the seller (which was FSBO and offering 4% to buyer agents) was FREE from paying commission to anyone.
I was told later that my offer wasn't the best; but since I didn't have agent representation, I got the deal. The seller netted MORE since all agents where removed from the transaction.
My competition on the property was working with agents costing the seller thousands - hence, they didn't get the deal. Every dollar counts to a motivated seller.
Remember, 3% on a $1,000,000 home is $30,000 -- what can you do with $30K?
A lot!!!
:eusa_clap:
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