Skip to main content

Why I do not trust buyer's agent anymore as a real estate investor?

Disclaimer: This is not a post of trying to dis the whole real estate agents but more on the system on how to give the incentive for the both buyer and seller agents

In the past few years we have seen that because of covid and both buyers agent and sellers agent will always sell it to the the retail customers that house price keeps going up so you will always have to put offer the best of the best possible! And with that they have insane amount of commission never seen pre-covid. Totally understandable for the listing agent's side because for seller its better for them to get higher price but it does not make sense for the buyer's agent to do this. Correct me if i am wrong but the buyer's agent is supposed to help the buyer understand the market of the property, the rental comps, the property comps and what is the *best purchase price for the buyer* and usually lower is better for buyer... but no.. because of this commission incentive they will try to convince the buyer to put the offer as high as possible so they can get higher commission... So as a buyer why would i even trust a buyer's agent recommendation if they just want to make the purchase price as high as possible for that oh so sweet comission... Exhibit case A: I am trying to add another multifamily in my portfolio and I usually try to talk the listing agent directly and to be unrepresented so the deal is better for me usually. I know how to do my own comps, rental comps, and calculate the cap rate/ coc. One of the newer selling agent did not want to do this and recommended his "mentor" to be the buyer agent, that deal did not go through but this buyer agent kept sending me listings of multifamily that they hope that they can represent me in the purchase. So I decided to test this buyer agent in terms of deal analysis for a multifamily that I know on the listing. And goodness they inflated every aspect of COC return and purchase price so it looks amazing deal for me. For instance I asked them what is the rental price for 2 bed and 1 bath in the area which i know to be 1600 and they came back with 2100 lol.. So with that they trying to represent this is a good deal yadda2...

This is probably 1 or 2 sample points and the market is not great right now for both buyer and seller in RE industry so i understand the desperation of both seller and buyers agent right now.... but this kind of behaviour will make me trust less of buyers agent which is sucks and i think its just the incentive for the buyers agent is just *wrong* Wondering what all of you guys think about this?

submitted by /u/keyclipse
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/z0soj5/why_i_do_not_trust_buyers_agent_anymore_as_a_real/
Labels:

Comments

Post a Comment

Popular posts from this blog

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear
1 comment
Read more

Fast Rising HOA Fees on NYC Condo, No Budget Provided

My wife and I are first time homeowners and could use some advice on a situation we've been having with our management company and Board. We bought a condo in Brooklyn two years ago, and since then our HOA fees have climbed dramatically. In August of last year, our fees were increased by ~30% and just yesterday we received notice that this new figure would be increased by 16% as of June 1st. The by-laws for our building state that ten days before such a change goes into effect, the Board must provide unit owners with the itemized budget upon which the new numbers were based. This didn't happen last year, and when I asked the management company about it, they just kept vaguely insisting the Board had done due diligence. After I kept pressing, they finally sent a budget that was several years old, so obviously not the one that the new numbers were based on. When I asked the management company for contact information for the Board to get further clarification, I was told that th
Post a Comment
Read more

How to create fidelity investments current bank statement for lender during escrow

I transferred a certain amount to my bank account to complete the minimum down payment required. The bank wants a current statement of the transaction. Unfortunately, fidelity only does quarterly statements so a December statement is not available and we are due to close next week. I called fidelity and they they can only provide a letter but the bank said that won’t suffice. Any way I can find or make one of my own that has my account number/name along with all the recent month’s activities? submitted by /u/bodaciousbeans [link] [comments] source https://www.reddit.com/r/RealEstate/comments/zmnnqo/how_to_create_fidelity_investments_current_bank/
Post a Comment
Read more