Home Buying in 47909>Question Details

Peter North, Home Buyer in Lafayette, IN

Why do you need to use a real estate agent to buy a REPO ? What a waste of 3-10 % and can they be TRUSTED ? ...

Asked by Peter North, Lafayette, IN Sun Jan 12, 2014

Help the community by answering this question:


Hi Peter,
I can understand where you're coming from but need to clear up some misconceptions. The "buyers" never pay a realtor for their part in handling the real estate transaction; the seller typically covers the commissions paid. Usually there are 2 agents involved and several REO properties pay a 5% commission therefore the listing agent gets 2.5% and the agent bringing the buyer gets 2.5%. Sometimes the commission can be 6% but I've never seen 7,8,9 or 10% commissions.
Now to answer your question: A realtor with foreclosure experience will be able to submit all of the necessary paperwork while meeting strict guidelines and deadlines the general public simply isn't aware exist. There are usually several hours of work involved from the time an offer is submitted, to making sure all of the necessary forms are required and properly completed, to finally arriving at the closing table for the last hour. I have had the pleasure of handling many successful closings with reputable and trusted realtors so I recommend you speak with a few and find one you feel comfortable with. If I can assist in any other way, feel free to give me a call.
Best of luck,
Carlos Bonilla
Broker associate
1 vote Thank Flag Link Sun Jan 12, 2014
Carlos ..
Why not just list it below the 5% to 6% to start off with ...Plus The asking price is normally 5-20% above the Final agreed sale price , I am also now seeing where Sellers are asking for a added $1000--$2000 to be paid by the buyer .
Jennifer ..That is my point ..The agent gets both sides of the table ..$$ from sellers side and buyers side ..Why not do just alittle homework as a buyer ,its Not hard to find out what homes have sold for over the last 6-12 months, or the last sale price of a home ..We are not talking brain surgery
Flag Fri Jan 24, 2014
.just to add an addidtional comment....once the home is listed on the MLS...the real estate commission is set. What the REO companies pays the real estate agent is pre-determined. If you choose not to have a real estate agent represent you, that's your perogative, however, the listing agent will then get both sides of the commission, you can only be paid a RE commission if you hold a license. In addition, the REO assest management Co. will most likely insist you are represented by an agent to make an offer, this helps to ensure a timely and smooth transaction. A few buyers may know what they are doing, but most are unfamiliar with the process and what is required, especially when dealing with an REO property. Lastly, Value of a buyers Agent: Can tell you what other similiar type homes sold for in the past year, how many have sold, and how many are currently on the market. All this will help determine the value of your investment.
Flag Mon Jan 13, 2014
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