How should I proceed? Yesterday I was scouting properties in Gainesville. I arrived to one home builder after

Asked by Michael, 20111 Sun Apr 27, 2008

the main office was closed. I saw a group of people standing outside of a house that had an auction sign. The new owner had just made the winning bid at the auction and was looking at his investment. I decided to go over and talk with the group of people when I met his new neighbor outside. The neighbor told me he won the house for 250,000. And said the guy was an investor and would sell it for 300,000 that day. I decided to go talk to the guy. He gave me a price of 350,000. Which I knew was more than he really wanted from the neighbor. He told me he would go lower if we did it without a realtor, with his realtor/mortgage broker present. That was interesting. It was hard to tell who she was because she introduces herself as his broker and he called her a realtor. If I was interested and doing the transaction WITHOUT a realtor what should I be cognitive of.

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Shelley Mast…, Agent, Haymarket VA, VA
Wed May 7, 2008
Well, first of all do you have an agent already? If you do, you more than likely have a signed buyer agreement to use his/her services. If not then just be very careful. The money you would be saving by not using an agent, might be less than the head aches & money you might loose from this investors experience to make a quick 50k off you. Make sure the home is worth the amount he wants to sell it to you for. Have the home contingent on a home appraisal, your financing,a home inspection have an attorney write up the offer . Or you can hire an agent to write it up. You can hire a Real Estate Pro. to do limited services~ just ask! Good Luck!! Call if you have any other questions.
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Danilo Bogda…, Agent, Reston, VA
Tue Apr 29, 2008
Thanks for the response back and the link. I responded to your other question as well. Would like to chat with you in more detail if you're interested. Please let me know.

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Julie Holtka…, Agent, Gainesville, VA
Mon Apr 28, 2008
Hi Michael,

Danilo is right, you would want to have your own agent represent you. In this instance, the Realtor for the investor would not have your best interest at hand. The terms broker and realtor are used interchangeably, however, the broker is who the realtor works for. For example, I am with Long & Foster. I am the realtor, Long & Foster is my broker. I handle all of the transaction acting as a representative of my broker. My guess as to why he would want you to not get your own realtor is that he would not have to pay the other half of the commission. His agent would probably give him a discount. He would save about 2-3% of the sales price at your expense. It sounds like a really great deal, except did you have an agent show you what the comparables are for the neighborhood? That is a huge neighborhood and if you click on the link below, you can see what the homes in the last 60 days have sold for. There are also homes for sale starting at $325K. If you choose to purchase, even from the builder, definitely use a realtor to help you. The commission is built in and you will be better informed. Good Luck

Julie Holtkamp
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Michael, Home Buyer, 20111
Sun Apr 27, 2008
Thanks. Well written. here's the property
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Danilo Bogda…, Agent, Reston, VA
Sun Apr 27, 2008
What you're thinking of doing is like going to court as the defendant over a $300K dispute and the plaintiff having a lawyer present and you not having one. Sure you want to do that?

If the seller has a problem with you having your own representation, they may be trying to hide something. It's obviously not that they don't like Realtors because they have one representing them. So it's just you that they don't want represented.

The list of what to be cognitive of is huge and is why Realtors still add value to the process. Get your own Realtor/Buyer's Agent or hire an attorney in order to protect yourself and your $300K.
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