Home Buying in Las Vegas>Question Details

Abusiness1, Home Buyer in Las Vegas, NV

if im paying in cash...for a bank owned house..do i need to get a real estate agent..still..? or should i deal with the bank agents directly...?

Asked by Abusiness1, Las Vegas, NV Mon Dec 6, 2010

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REO transactions are complicated and you probably should hire someone who has experience with submitting offers on various REO servicer's listings. Each one is different and you do want someone who has time to guide you through the process so you don't go banging your head on the wall.

The REO agents here are pretty incredibly busy so I don't know that they would have time to work with you. They will more than likely push you to one of their buyer's agents.
2 votes Thank Flag Link Tue Dec 7, 2010
Just because the label says BANK REO doesn't mean you will getting the "steal" of a lifetime. Banks are in the business to make as much money as they can with their unsold inventory, and you will be negotiating price with a seasoned, experienced seller who does negotiatiations with 100's of buyers a year. He knows every trick in the book, AND YOU DON'T.

This is not like buying a car.

In poker, I would call you a fish. Set you up with a couple easy questions, become your friend, and when it comes to crunch time, bring out the hammer.

Even with my over 30 years experience, I thought I could save some money letting the listing agent
represent me as a buyer on a very, simple condo transactions. We waived 1 major inspection and it cost me $10,000 to fix, And I have been involved in over 50 buying transactions. GET HELP!!!

David Cooper +1-702-499-7037
1 vote Thank Flag Link Tue Dec 7, 2010
It is never in your best interest to not be represented by a listing agent. You want your own agent and it is basically free (except any transaction fee) to you. If the listing agent represents you that means they are dual agents which LEGALLY restricts them from doing certain things that the average person would consider fundemental under the concept of repensentation! Find a buyer's agent and work with them. It is quite possible that your offer may not be accepted. I know that i still get an average of 3 to 10 offers on most of my bank listings. Just because you are a cash offer does not seal the deal....there are many investors out there that pay cash and still do not get contracts.

I haven't seen one single bank that pays the listing agent both sides of a commission if the buyer does not have representation. The bank keeps the cost of the buyer's commission but i can tell that will not make or break a deal from the seller either way so it is better for you to have your agent that doesn't cost you anything.

?????QUESTION: Why would you want to PAY for an attorney, as some have suggested, to represent you when you can be represented for $0.00 FREE from an experience real estate agent???????? If you want to know more about the process, you can call or email but make no mistake you need to be represented by an agent who is experienced in distressed properties.

Best of luck.

Valerie Edwards, REALTOR
ABR, RRG, SRS, SFR, RRG, SRES, RSPS, GREEN, ATHOM
(702) 371-5533
INFO@AgentValerie.com
1 vote Thank Flag Link Mon Dec 6, 2010
As others below have said, use a good buyer's agent that is familiar with distressed homes.

THE DIRTY LITTLE SECRET:
What's interesting though is that many Bank Agents are now asking buyers like you who come to them to use another agent (usually a friend from another firm). They know the bank will cut them way down to 4% if they have what we call "both sides." So, they will "run it through" another agent they know on the buyer's side so that the most they will get cut to is 5%. They still have to pay the person it's run through something but not the full 1% they would lose if they had "both sides."

That's "hypothetical" of course. Now I may get whacked by my fellow Realtors for letting a dirty secret out-of-the-bag.
1 vote Thank Flag Link Mon Dec 6, 2010
Quite simply you don't need to use a real estate agent. On the other hand you don't need a doctor or dentist. If accused of a capital crime you don’t need a lawyer. You can always do it yourself in every case. If you have the knowledge and expertise you can always do any task yourself. On the other hand if you don’t do real estate as a profession and don’t have the continuing education and knowledge than you would probably be best off having your own agent.

I sell may bank owned properties (as the bank’s agent) and when I receive calls from customers I always ask if they have their own agent that they are working with. When they say yes I refer them back to their own agent. If they don’t have an agent and specifically want my property I will usually have my buyer’s agent represent them to make sure they are fully protected and will get the best representation possible.

If you have a real estate agent or a REALTOR that you are comfortable with I strongly advise you to work with them. If you need an agent please contact me or one of the agents that replied to your question. Your end result would me much better in your quest for home ownership.

Dave Rubinger
Broker
D and R Realty
David@DandRRealtyLV.com
1 vote Thank Flag Link Mon Dec 6, 2010
Good Morning Abusiness1;
If you know like the back of your hand:
The standard residential contract, the addenda that accompany the contract, the banks contract and addenda once they agree to the terms, how to transfer and protect your escrow deposit, how to read a title insurance policy, how to order a survey and an appraisal, and what to do with the HUD sheet, etc. etc.
.....by all means go ahead.
Web Reference: http://www.321property.com
1 vote Thank Flag Link Mon Dec 6, 2010
No matter what always have an agent represent you , it does not matter if cash OR loan still the same transaction.

Would you go to court have opposing side attorney represent you? Probably not

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Mon Dec 13, 2010
The bank agent represents the bank - NOT YOU. Their first allegiance is to the bank. So, they have no interest whatsoever in negotiating a better price for you. Nor in telling you what inspections to have and when to have them. You don't save any money by not getting a buyer's agent to represent you. It doesn't cost you anything for the representation as it is paid by the bank. Conversely, if you don't have one, the price doesn't drop for you either. When you have your own agent, they are looking out for your interests only. The fee for your agent is paid by the bank. By paying the agent, the bank just makes less profit, but the amount you pay is exactly the same with or without and agent. So, to me it would just make more send to go with an agent.
0 votes Thank Flag Link Mon Dec 13, 2010
While you do not have to have an agent legally, you should get one. Why? First off their services are free to you when you are buying a home. They also have a fiduciary duty to you which, among other things, means they have to always act in your best interest. This will allow you to get the best deal possible while limiting your risk to any problems that you may be unaware of. Realtors do real estate transactions quite frequently so they know what to look for and can easily see when something is just not right. I would find a good Realtor in your area and interview them to see if they are a good fit.
0 votes Thank Flag Link Mon Dec 13, 2010
Yes you should have an agent watch out for your interest. Bank owned properties need someone to pay attention to and someone with some level of expertise. It is in your interest to have representation.
0 votes Thank Flag Link Mon Dec 13, 2010
CASH!!! Sellers love cash! They will take as much of your cash as they can get. That is why you should have your own agent. Your agent – YOUR – will be working for you, not the seller. You will not save money by offering to work with the listing agent. You will just be putting more money into that person’s pocket.
0 votes Thank Flag Link Sat Dec 11, 2010
buying an REO is very tricky and you usually have a lot to do in a short amount of time or risk your deposit should you not move forward. I would find an experienced agent in buying these types of properties.
0 votes Thank Flag Link Fri Dec 10, 2010
In today's real estate society, it is very important to allow a real estate agent to represent you in the sale or purchase of any home. Your real estate agent is going to work diligently to protect your investement and ensure there are no hidden secrets or surprises of the subject property. Hope this helps, Mary Ann
0 votes Thank Flag Link Thu Dec 9, 2010
While you don't need a real estate agent to buy a house, there are many things that have to be done before closing on the property, i.e., smoke detector intspections, home inspection. appraisals, etc. Your Realtor will know what's needed and who to call to have everything done. If you choose to handle the sale yourself, be prepared to deal with the failures of any of these inspections. If you're going to do it yourself, you really should have a real estate attorney present at the closing, to represent your interest in the transaction and who will work to make sure everything, and every document, is legal.
0 votes Thank Flag Link Thu Dec 9, 2010
The means of financing does not mean that you don't need advice and professional help in your decision to buy a home and at what price. An agent can help you understand the value of a home, the demographics of the neighborhood and much more. Do you believe that not using an agent will save you money? To the contrary, it may cause you to pay too much. A professional agent can help you make the right decision due to their knowledge of the market and potential pit falls along the process of buying.
0 votes Thank Flag Link Thu Dec 9, 2010
Get an agents that specializes in buyer representation. A good agent will run comparable sales in the area. Negotiate the transaction and protect your interest.
0 votes Thank Flag Link Thu Dec 9, 2010
Greetings...by reading your question, you really do know the answer, so I will validate your thoughts by advising you to definitely work with a real estate agent. Best of luck in your purchase!
0 votes Thank Flag Link Thu Dec 9, 2010
The agent gets paid by the bank, Why would you not take advantage of no cost to you representation.
0 votes Thank Flag Link Thu Dec 9, 2010
Not only get a real estate professional that will give a 2nd opinion, as well look for a powerful lawyer that protect you from dealing with the banks, in Florida the General Attorney have several lawyer firms under investigation, they have get the foreclosure properties for the banks in a fraudulent way, you can loose you savings.
0 votes Thank Flag Link Thu Dec 9, 2010
Hello Abusiness1,

You received many responses below.

You should definitely have an agent represent you. It cost you nothing, and it provides you with a great resource. Just make sure you find the right agent for you; interview your agents.


I can help with any of your Las Vegas Residential Real Estate needs or questions; feel free to contact me direct.

--

Sincerely,

Mark D Fleysher, MBA, Broker, REALTOR
The Jack Conley Realty Group
C. 702-291-8186 F. 702-946-0843
0 votes Thank Flag Link Tue Dec 7, 2010
i would deal with the bank directly but make sure you have a lawyer look things over before you sign
0 votes Thank Flag Link Mon Dec 6, 2010
Hey there,

go ahead and deal with the bank agent directly and please make sure you have a good lawyer for protection after you get screwed by the bank or their reps. especially after you close the deal and find out you have some minor issue with title or property condition such as mold.

good luck!!
Web Reference: http://www.alexnatour.com
0 votes Thank Flag Link Mon Dec 6, 2010
Hello Abusiness1,
As a buyer, Realtor's usually provide free service to you. We are normally paid buy the seller.
I would think that this should have some interest to you.
I would love to earn your business!
Give me a call or shoot me a email,
John
Web Reference: http://www.JJLVRealtor.com
0 votes Thank Flag Link Mon Dec 6, 2010
David's answer below is right on the money!

You don't know what you don't know and that's where you can run into trouble. It's possible to go it alone and maybe you'll come out ok, but there are so many pitfalls an experienced agent will help you steer clear of. Why wouldn't you want someone with experience and knowledge to guide you through the complicated process of purchasing a home (especially a bank owned home)?

I see quite a few questions on sites like this from buyers who have found themselves in a bad situation and are looking for advice. The advice often boils down to: "It's too late! You should have used a knowledgeable, experienced agent and you wouldn't be in this situation". Don't be that buyer asking for advice after it's too late. Take the advice you got today and hire a good agent!
0 votes Thank Flag Link Mon Dec 6, 2010
If you wish, you can deal directly with the listing agent, however an agent of your own will look out for your best interest--also keep in mind that no matter cash, or loan, in the end the seller gets paid--therefore be aware of recently sold similar properties in the immediate area, after reviewing the data, a determination as to a fair bid can be made--also keep in mind that if the property is listed at today's market or slightly below, multiple offers may occur.
0 votes Thank Flag Link Mon Dec 6, 2010
Im not sure why you would think paying cash has anything to do with whether you hire an agent or not. It really doesn't matter. You should have your own representation. You dont want an agent that is hired by the bank to get them the most they can working for you too. Every agent in Las Vegas that is an active agent is very knowledgeable on bank homes.....I know this because that is all we do right now. It is very rare to find a real living breathing seller. I would be happy to answer any questions you may have . You can call or email me any time. Also remember , as a buyer it doesnt cost you anything to hire an agent so why not ?
0 votes Thank Flag Link Mon Dec 6, 2010
Good Morning
I am a Buyer's Agent Realtor working with Investors and private buyers. I sell mostly REOs because they are usually not overpriced and they do not have the wait time of the typical Short Sale. I know what to expect in these houses and in these contracts.
If you want someone to look out for your best interests and get you the best deal, work with a Buyer's Agent. Remember the Selling Bank's agent is working towards getting the BANK the best deal.
Andrea Packo
Representation with Integrity
MBS Team, Keller Williams Marketplace
Henderson, NV 89074
702-279-2679
Web Reference: http://www.andreapacko.com
0 votes Thank Flag Link Mon Dec 6, 2010
Good morning,

A smart buyer should hire a Realtor... When hiring a Realtor, like myself, you have the confidene that you have hired someone that has agreed to higher standard and are committed to your best interest. Why You Should Work With a REALTOR® ? well.....

Not all real estate practitioners are REALTORS®. The term REALTOR® is a registered trademark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION of REALTORS® and subscribes to its strict Code of Ethics. Here are nine reasons why it pays to work with a REALTOR®.

1. You’ll have an expert to guide you through the process. Buying or selling a home usually requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page settlement statements. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes.

2. Get objective information and opinions. REALTORS® can provide local community information on utilities, zoning, schools, and more. They’ll also be able to provide objective information about each property. A professional will be able to help you answer these two important questions: Will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

3. Find the best property out there. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your REALTOR® to find all available properties.

4. Benefit from their negotiating experience. There are many negotiating factors, including but not limited to price, financing, terms, date of possession, and inclusion or exclusion of repairs, furnishings, or equipment. In addition, the purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

5. Property marketing power. Real estate doesn’t sell due to advertising alone. In fact, a large share of real estate sales comes as the result of a practitioner’s contacts through previous clients, referrals, friends, and family. When a property is marketed with the help of a REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.

6. Real estate has its own language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with a professional who is immersed in the industry and knows the real estate language.

7. REALTORS® have done it before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you’ve done it before, laws and regulations change. REALTORS®, on the other hand, handle hundreds of real estate transactions over the course of their career. Having an expert on your side is critical.

8. Buying and selling is emotional. A home often symbolizes family, rest, and security — it’s not just four walls and a roof. Because of this, home buying and selling can be an emotional undertaking. And for most people, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on both the emotional and financial issues most important to you.

9. Ethical treatment. Every member of the NATIONAL ASSOCIATION of REALTORS® makes a commitment to adhere to a strict Code of Ethics, which is based on professionalism and protection of the public. As a customer of a REALTOR®, you can expect honest and ethical treatment in all transaction-related matters. It is mandatory for REALTORS® to take the Code of Ethics orientation and they are also required to complete a refresher course every four years

If I can help you or answer any qestions related to real estate in general, please do not hesitate to contact me.

Best regards,

Maria L. Morales
Realtor
Keller Williams Realty Southern Nevada
(702) 286-2464
0 votes Thank Flag Link Mon Dec 6, 2010
Hello,

You should definitely have an agent who represents your interests in any real estate transaction.

I would appreciate an opportunity to be that agent. I have plenty of experience with bank owned homes and will work hard for you.

Please feel free to give me a call.

Thank you,

Brian Mannasmith
REALTOR
702-335-5335
0 votes Thank Flag Link Mon Dec 6, 2010
You could certainly deal direct with the listing agent if you feel comfortable. If you are knowledgable about the buying process, have a knowledge of buildings and repairs and being a cash buyer, most listing agents will certainly give you the attention you deserve. The key to the good deals is getting the information when teh agent is assigned teh listing, there is often a lag time from it hitting the market untyil the house is cleaned, maybe deed cleared and house is appriased. By getting into these listings before they hot the market, you can complete your own inspection, assess what the house is worth in todays market and have an offer ready once the bank sets a price.

If you do not have any expereince you should definately have a buyer broker, the key though id making sure the agent is expereinced in bank owned homes, not all are, You want soemone that can give you an advantage when making your offer.

Please see my blog for more tips and advice on buying bank owned homes
0 votes Thank Flag Link Mon Dec 6, 2010
Simply stated......always seek to protect your personal best interests by working with and through an agent that represents only you.

In most cases the banks have calculated into their asking price a fee that already includes the fee for professional services.....for both agent sides.

Proceed with your own personal agent!

Bill
0 votes Thank Flag Link Mon Dec 6, 2010
I couldn't agree more. Get your own agent. How you are paying does not come into that equation. Your own agent can help you negotiate a better price than the one who is working for the bank.
0 votes Thank Flag Link Mon Dec 6, 2010
Absolutely correct! You NEED your own agent! Your question alone indicates you have not got a lot of experience in these things which means it is all the more important for you to have an experienced agent looking out for your best interests. These deals can be difficult and tricky. You need someone to be sure you are protected, that you get marketable title, that you get the home in the condition you anticipate, and that you get good value for your money. This one is a "no-brainer" get yourself a good agent!
0 votes Thank Flag Link Mon Dec 6, 2010
ALWAYS ALWAYS ALWAYS have your own agent! It costs you nothing and you get 100% representation from your own agent! Find someone who is experienced with bank owned properties and use them! Why would you want to use the agent that represents the bank when they will have the best interests of the bank in mind when negotiating???
0 votes Thank Flag Link Mon Dec 6, 2010
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