Avoiding real estate agents

**Kreative Maverick** · 09-24-2008, 09:26 PM

Hey board,

I have been searching for investment properties....especially REOs. I have found that when I find them there is normally a real estate agent involved who is not prone to budge on talking the bank down. Does anybody know what are some good ways to avoid the agent and deal straight with the bank? I have gone to a few banks and they either give me the run around or direct me to an agent.

Any suggestions would be great. FYI recently I have been going straight to the counties that I want to buy and have gotten some good deals, but I do not buy at auctions unless I have had a chance to check it out.

Keep it Kreative.

**Codythebest** · 09-27-2008, 09:43 AM

That's the problem. Banks get their REO to a local agent, who is not willing to work with the public but more for his wallet...
Even me, as agent, I wondering why, no later than last week, I suggested an offer at $220K (asking was $330K) to my client, making him very happy (he disagree, afraid of losing the deal) but getting 3% commission on $110K less...
Find a stupid agent like me and make better deals than what you could do yourself...
Oh...and I suggested 6% of purchase price back to my client for closing and prepaid...He has no idea about that...and the bank said yes !!!
Pfff..I'm tired of making other people richer than me...

**Greg** · 09-27-2008, 02:29 PM

Stop going to the listing agent and get a buyer's agent, their commission is already figured into the deal by the bank and you will not save any money by going to the listing agent.

The listing agent is required to get the most for the bank.

The bank's asset managers are having a hard enough time keeping track of things when dealing with a few agents. Opening the doors to the public would only make the situation worse and the system would grind to a halt. I doubt you will find a way to deal directly with the banks.

**markbrian** · 09-27-2008, 04:28 PM

Banks do not and in most cases will not deal with the public. They have found thru experience that the most effective way to dispose of REOs is with the help of an agent. The same is true of course for non-REO properties.

If you are a serious buyer/investor, you really need to find an agent to work for you. Many listing agents of REO properties are just as overwhelmed as the banks Asset Manager. And I suggest you learn how agents work, the lsiting agents job, with every property not just REO, is to represent the seller and try to get the highest price for the property.

A buyers agent's job is to get the best price/deal for the buyer. You can try a buyers agent out by signing on with them for only one property. If they meet your expectations, then you can look at establishing a longer term relationship.

Many people who have a dim view of agents have done exactly what you have and when they found a property they liked, they went to the listing agent. They think somehow they are cutting out another agent and the listing agent will get them the best deal since only one agent is involved. But remember, that IS NOT THE GOAL OF THE LISTING AGENT!

**Kreative Maverick** · 09-28-2008, 09:36 AM

That is some good info there. I have found that to be true in my dealings since I have posted this.

I am interested in thee buyer agents. So for someone who is a serious investor with the capital and credit to match. What would be the best way to find REO homes?

FYI>>>I was working w/ an agent and told him I would turn around and re list w/ him if he got me a good deal. We are purchasing the home next week. Has anybody else come up with some ways to get around the agents?

**Michael Asgian** · 09-28-2008, 10:18 AM

Isn't this a bit ironic to ask how to avoid Real Estate agents on a Real Estate Forum/Board?

**turkeysandwich** · 09-28-2008, 11:17 AM

Originally Posted by Michael Asgian

Isn't this a bit ironic to ask how to avoid Real Estate agents on a Real Estate Forum/Board?

YUP! If I didn't know better I would be offended. Nice pics BTW what area do you work in?

**hdbrental** · 10-12-2008, 03:56 AM

What is the reason you want to avoid real estate agents?

**minnesota-mls** · 10-12-2008, 05:57 PM

Thanks for your post Kreative! Realize the agent listing the REO or bank owned home for sale represents the seller and the seller's best interest. He or she does not make any decisions what price the seller will take.

I highly recommend you find a top real estate agent in your area who can go to work for you on the buying side.

I have invested in real esate here in Minneapolis since 2001. And even when I was not a realtor, I definitely used one on every purchase. They will provide a ton of value in helping you determine value of the property, as well as guiding you through the complicated bank owned transaction.

I would not recommend you navigate these waters alone. Remember the selller pays the real estate commisssions in a transaction. Find a top agent who will go to work for you!

**ericmedem** · 10-13-2008, 01:13 PM

I have bought several from other realtors even though I am an agent myself simply because they know when the banks are ready to drop their pants on a deal. For example one home sold at auction for 92k I paid 12,500 then sold it 3 weeks later for 35k. Why the agent didn't take it I will never know, but most dont.