Re: Work with Realtors…Don’t work with Realtors…HUH!? - Posted by JPiper
Posted by JPiper on April 01, 1999 at 21:35:57:
As for recording, I would probably record a “memorandum of agreement” which would state that there is a contract on the property, that it will close on or before XX date, and that a copy of said contract can be obtained from you at your address. This would need to be signed by you and notarized and recorded in the county the property is located in. (I believe Bronchick has these in his Nut’s and Bolts course? but you might be able to get one at the title company, or ask your attorney).
I’m not saying I’m against working with agents?..matter of fact I happen to be married to an agent, and had a broker’s license for many years. What I’m suggesting though is that with agents come problems?.and you have to both acknowledge that and be prepared for it up front. I used to make a big deal out of how I never dealt with agents?although I have bought a few properties in the last year where an agent was involved?.just one more example of “never say never”.
But here’s my belief system: Most of the really good deals are NOT in the MLS. Now there may be some who disagree with that statement, but I don’t make it lightly. I’ve had MLS access for years?and currently have it?.so it’s a topic I do know something about. Having said that, I think there are some possibilities for deals through agents?.and I don’t shut them off. I have one agent who before he lists a property in a couple of areas I’m interested in, always calls me. If I’m interested he acts as a buyer’s agent for me for a set fee?..he doesn’t list the property. I have other agents who call me regarding their listings, most of which are not of interest to me.
In the situations where I buy listed properties, I insert certain things into the contract in most cases. One of those clauses gives me the right to enter the property on a 24 hour notice to inspect or show the property to contractors, inspectors, tenants, and/or buyers. Now, let me ask you this?..would this agent being having such a fit if you had this clause in your contract? In the past I have even had a clause which permitted me to put a sign in the yard (although I don’t use that these days because I’m not that concerned with the sign).
The biggest problem I have with agents is not their stupidity (not all agents by the way are stupid?just a lot of them). Rather, the agent is basically a barrier between you and the seller. Because of this effective communication is either reduced or eliminated in most cases. Effective communication is key to doing a deal. However sometimes you can prevail on the Realtor that you be present during the offer presentation. Sometimes the Realtor can actually become an ally in this presentation if you play your cards right.
Of course for us tightwads, of which I am one, I hate commissions as well?.so there’s always that factor. For that reason I will generally only deal with the listing agent. Having 2 agents simply doubles the trouble and means two people have to be paid rather than one.
As to why some people get their jollies off with Realtors, I can’t say. I haven’t read Legrand’s courses, so I can’t comment. But Legrand has lots of lines in the water, and he’s not ruling Realtors out. I agree with that. I would only say that communication is going to be reduced with the seller, and their will be additional fees in the transaction, and you may have to deal with the Realtor from hell.
How do you work with Realtors? Attempt to get in front of the seller when the contract is presented. Insert clauses in your contract that give you the right to do the things you need to do…like access the property. And know your business inside and out…so they can’t intimidate you with misinformation.