Purchasing a fixer upper can be an extremely difficult and frustrating experience for the newbie fixer upper investor however it can have significant rewards. If you're a newbie and you're considering purchasing a fixer upper, you may wonder if you need an agent. In this article, we'll tell you the pros and cons so that you can make your own decision.
Pros of Using a Buyer’s Agent
1. By hiring a buyer's agent that specializes in foreclosures, you will have access to homes that are currently listed on the MLS system or not even listed yet. Many agents have partnerships with banks and credits and have viable lists of properties that aren't even available to the public yet. And, by hiring an agent, you'll have this information too.
2. A buyer’s agent knows the marketplace and can give you sound information based on their experience with fixer uppers.
3. A buyer’s agent likely has good contacts and can likely put you in contact with mortgage companies and/or bank loan officer that may be able to offer you financing options.
4. A buyer’s agent is hired by you (not the seller) so it is quite likely that they will work diligently on your behalf. That is, unlike the seller's agent, they are not trying to secure the best price for their client. Instead, they are working diligently to find a suitable properties and secure the fixer upper deal on your behalf.
5. A buyer’s agent will listen to your needs and help you discover fixer uppper properties that meet your precise needs. In addition, they can also negotiate on your behalf so that you secure the best possible deal.
Cons of Using a Buyer’s Agent
1. You will not be able to negotiate directly with the seller. In essence, you won’t be able to establish a relationship with the seller that could very well equate to a better profit for you.
2. Your agent will have to be paid a fee for their services. Since most buyer’s agents are paid directly from their clients and not from the sale, this money will likely come out of your pocket.
3. You may be able to find suitable fixer upper properties for sale on your own and if you're a good negotiator and know the business you may not need a buyer's agent working on your behalf.
4. Some buyers agents pressure you into signing a contract however if an agent is being paid upfront and not based on whether a sale is made, you shouldn't feel pressurized to purchase any specific fixer upper property.
In conclusion, there are pros and cons to working with a buyer's agent. By carefully evaluating both sides and your personal situation, you should be able to determine if you need to hire a buyer's agent to represent you in your next fixer upper property purchase. If you do, use good judgment and choose someone who is well versed in fixer uppers and make sure that they have your best interest in mind before signing your exclusive agreement.
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