Posted by Linda Simms on August 02, 2003 at 08:54:32:
Another good reason not to use Relators unless absolutely necessary. Especially when buying. You don’t need a relator. You do need a good title company that you can trust. Any earnest deposit or down payment you make, deposit it with the title company, not the seller’s relator. Keep him out of the picture as much as you can. Remember he works for the seller, not you the buyer. You can handle all the necessary details or have your title company do it. I have not used a relator for years, just the title company which I trust. You don’t need a relator when you sell either. Use your title company. A relator is just in the way and will take a big fee out of your profits for doing little or nothing. Sorry but that is the way I and most seasoned investors see it. I know this will not set well with the relators or so called Investor/relators on this site. You don’t need an attorney either, unless you have a very difficult situation and require legal advice.
Ok, hopefully this got some attention. First of all, I don’t mean to imply that realtors don’t do anything. On the contrary, I’m really wondering what they do from the time the contract is signed to the time the house closes at the title company.
Here’s my problem…
I currently own two houses (both rentals now) but both were purchased the traditional route with both myself and the seller using realtors. I have a basic understanding of how to find properties and motivated sellers, but what do I do after we sign the contract? I guess I don’t understand what happens between then and when the house is actually mine. Do I as the buyer set up the arrangements with the title company? Who does all of the closing paperwork? Do we need lawyers involved? What needs to be recorded at the courthouse and how is that done?
I feel that this is the stuff that I now need to learn. It’s all well and good if I can find properties to buy and sell, but if I don’t know the actual process of the sale, it does me little good unless I want to continue to use realtors.
The first thing you need to do is find your local investors club and go networking. Find out who the preferred closing agents and RE agents and lenders are.
Find out all the procedures for buying and selling in your particular area.
I will say though that the agent will take care of most of the details you mentioned, so you don’t have much to do, except maybe collect documents.
There is one little problem though. Aside from the fact that the agent is being paid to attend to the details, another reason agents do it is to retain control. They want to lead you around like a sheep and do as you’re told.
You don’t want that, you want to be in control. You want to specify where and when the closing will take place. You don’t want to have a huge earnest money deposit tied up (and the agent will tell you that you must). You want the least possible money in the deal.
Furthermore, no matter how much money you have tied up, whether it’s $10 or $10,000, you want to be able to get it back if the seller doesn’t live up to the deal (say the house doesn’t appraise, or the repairs are more than specified or whatever). You will have an uphill battle if it’s being kept in the SELLER’S AGENT’S ESCROW ACCOUNT. You need to have it where you have control of it. Keep in mind that unless “your” agent has a “buyer’s agent” contract with you, they are not working for you. They are a “sub-agent” for the seller, and not looking out for your interests.