Home Buying in 30041>Question Details

Toni, Home Buyer in Georgia

Buying from a brokerage company...is it a good idea??

Asked by Toni, Georgia Tue Mar 2, 2010

Is it a good idea to buy from a Brokerage Company? A friend of mine has alerted me to a foreclosure home in her neighborhood that has been bought and now being sold by a brokerage company. I talked to the broker today who said he is just waiting on an appraisal before listing the property and plans to sell far below the appraisal price. Is there anything I should be looking out for when buying from a brokerage company? Any specific questions I should ask? Thanks for your input

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Hi Toni

You're getting a lot of good advice. I would simply like to emphasize that you retain a real estate attorney, who can also do your closing if you wish, to help you with your offer and sales contract. You do need to make sure that you have ways to get out of an adverse situation should inspection of the property or title uncover something unfavorable. You should also have a good realtor helping you out. A good team will make things so simple it may seem like they're not needed - going on your own you'll regret not having a few professionals on your side.

If you're financing, feel free to toss those questions my way - I'm always happy to help.

Eagle Nationwide Mortgage - Thomas.Stevens@ENMCdirect.com
0 votes Thank Flag Link Wed Mar 3, 2010

If it is going to be listed by a brokerage company, I guess the question would be, what is the difference. You can always contact a buyers agent to represent you in the transaction. Which would be a good idea.

Since I am a mortgage lender not a broker, the difference in my field is the following:

A lender makes the decisions in house with in house UW, Closing, Wiring. Nothing goes out of the building so to speak.

With 17 years in the mortgage lending business, please feel free to contact me if I can assist you with any answers to questions you may have about mortgages. I would be honored to help you and your in this field, if you find the need.


Lynel Adams
Sr. Mortgage Consultant
0 votes Thank Flag Link Wed Mar 3, 2010
Thank you for all of your input! I find this website invaluable! To answer Mr. Taylor's question...... virtually none. My husband and I purchased one home which is the one we currently live in. The foreclosure home I am speaking of would be for us and our 2 small children to live in as our primary home.
0 votes Thank Flag Link Wed Mar 3, 2010
Hi Toni,
I totally agree with the other agents that have answered your question-but now I have a question for you. I know that you have had other questions about buying real estate in our area- I have to wonder why you are not working with an agent- remember- the buyers agent will be there for you, to represent you and your interests in this purchase and the best thing is that you do not pay them for this service- the seller does. Don't fall into that trap of thinking that you will save money by going it on your own- it does not work that way. The negotiating skills and knowledge of practices and contracts that a buyers agent will bring to the table for you will save you both money and time tremendousley in this endevor. Find a agent that you can develop a working relationship with and trust them to lead you in this journey- I feel sure that you will ultimately feel more secure in your decisions and find the whole process to make much more sense. Good luck to you and let me know if I can help you.
Web Reference: http://www.wilmahine.com
0 votes Thank Flag Link Wed Mar 3, 2010

Your question is a good one and can be answered Yes or No. It will depend on which Brokerage firm you buy through.

Let me explain. If, as your question suggest you deal directly with the firm that will be listing the property the answer to your question is probably NO. This is because the Brokerage firm which lists the house is required by law to represent the interest of their client; the seller, and not that of the buyer. The reason the answer is NO in this case is because one Broker can not truly represent the interest of both parties at the same time. It would be kind of like JOHNNY COCHRAN defending OJ as his defense attorney and also being the prosecuting attorney at the same time. Wonder how OJ would have faired?

If however you buy through a Brokerage firm that represents you as a client in the form of a Buyer Broker; the answer would be YES. At least that’s what I think OJ would say.

For additional insight please feel free to contact me or go to this link. http://wp.me/pCwCu-3R. I found it very helpful.

Van S. Purser - Managing Broker & Investor
Van Purser & Associates LLC
Providing Real Estate Solutions Since 1981
Office: 770-623-3313 Cell: 404-863-2340
Fax: 770-623-0531
Email: MailTo:VanPurser@VanPurser.com
Web Reference: http://www.VanPurser.com
0 votes Thank Flag Link Wed Mar 3, 2010
Hi Toni,

Typically the brokerage company that you refer to in your post is the listing agency not the owner of the property and they are looking out for the best interests of the seller of the property...not yours. So as previously stated find and hire yourself a strong buyers agent to represent you. In regard to the home you need to look at the home from top to bottom to see what repairs and upgrades may be needed....You may want to get inside the home with an inspector prior to it being listed if you feel there may be multiple offers...your agent should be able to facilitate that for you. There are multiple other considerations that you will need to decide upon as you go through the process...

If I can be of help please do not hesitate to call.

Chuck Green, Realtor
Keller Williams Realty
Web Reference: http://chuckgreen.com
0 votes Thank Flag Link Wed Mar 3, 2010
Some great answers here, Toni. The best, in my opinion, are the ones which advise you to get your own representation. In this situation, that is priceless. And anyone on either side of the closing table who tells you they know which homes are most likely to go up in value over the next couple of years, unless the property is already 30 to 40 points below market, be aware. In whatever you decide, as always, Good Luck!

Michael Hammond

0 votes Thank Flag Link Wed Mar 3, 2010

There is more to buying a good INVESTMENT than simply getting a good price on a home. Does the home or neighborhood have a history of poor performance? How are schools for resale purposes? How's the lot? Comps in the community and immediate area? Location and proximity to shopping, etc? How close to GA 400 for commuters.... and on and on. You get the idea. You want an agent that lives and breathes the Cumming area so they can tell you whether the hoome is likely to appreciate or not and what it's performance has been in the past (and why). The listing agent is just that. They are paid to sell the house. They are never going to tell you it's a bad deal.

Best of luck in your search. Call or email us if you need help.

The Sherry and Maria Team
Keller Williams Realty Consultants #1 Team
Sherry 678-283-1710
Maria 678-548-5513
0 votes Thank Flag Link Tue Mar 2, 2010
You are entitled to equal representation. In this instance the brokerage is representing the Seller(Bank) and their best interests..NOT YOURS. The are trying to get the best deal and terms for their Seller. You should hire a good Buyer's Agent to represent you and YOUR best interests in this transaction. They should have recent experience and good skills in foreclosure transactions and Buyer representation. There are so many things to consider in buying a foreclosure that you don't want to depend on an agent that represents the Seller to advise you on these issues. You want someone on your team. The Seller pays the fees for a Buyer''s agent in most cases so it does not cost you anything and can save you PLENTY. If you would like to discuss this further please contact me and I'll be happy to answer any questions. Depending on the area and neighborhood we can either help you or refer you to an agent that can if you are out of our area.
Deryk Harper
Keller Williams Realty North Atlanta
0 votes Thank Flag Link Tue Mar 2, 2010
Tim and Anna both give good advice.

What has been your experience with real estate purchasing, Toni?
Web Reference: http://intowninsider.com
0 votes Thank Flag Link Tue Mar 2, 2010
Just keep in mind that if it's listed on target for today's market or sligtly below multiple offers could come to play--otherwise--no matter who the owner is the process is the same--if you don't agent of your own consider the services--he/she can look our for your best interest--be aware of recently sold similar properties in the immediate area--review the data before making any offers.
0 votes Thank Flag Link Tue Mar 2, 2010
Hi Toni,

You should be fine buying from a brokerage company. At one time FHA had a 90 day flipping rule in place if you were funding the home with an FHA loan but the rule has been removed for the time being. So go for it!

I hope this helps!

0 votes Thank Flag Link Tue Mar 2, 2010
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