You can make ‘lowball’ offers to anyone…don’t need the MLS for that.
The big advantage with MLS is 2-fold. First, I can do searches that may indicate motivation…‘Market time’, price changes, keyword searches indicating motivation, property condition, possible bank-owned properties, etc. As extensive and time consuming as these searches can be, NO agent would do them as in-depth for me as I would for myself. Secondly, while I do locate properties using other methods, the MLS allows for instant, relatively accurate market evaluations, or at least a good guide until I see the property in person.
Also, while most investors will tell you that the biggest obstacle is the need to disclose your licensee status, that is easily overcome by explaining that you have an obligation to a Code of Ethics while non-licensed investors are not.
You don’t have a listing contract with the RE broker, the seller does. Without a contract to act specifically as a buyer’s agent, all RE agents work for the seller. Even when “your” agent shows you a house that is listed by someone else, they are acting as a sub-agent on behalf of the seller. Legally, the interests of the seller come first. In a practical sense, agents have to get the deal done to get paid. It is the seller’s responsibility to pay the listing commission. That said; it takes a seller that is very desperate or in unusual circumstances to accept an offer that doesn’t provide for ample cash to pay the expenses of selling the property. This will be reflected in the offers of most deals that involve an agent.
another question: say an agent has a seller, is it common for an investor to do a creative deal with the seller, given the seller is motivated enough? how does the commission work out? any issues that the investor should be aware of? thx.
Brent,
Sub-agency was outlawed in Illinois several years ago. This was done to protect buyers who assumed that ‘their’ Realtor was representing them when, in fact, they weren’t. Now, even though the commission comes from the seller’s proceeds in most cases, if an agent is finding properties for a buyer, they have a fidiciary obligation to represent that buyer’s best interests.
Do you use the MLS to make ‘low ball’ offers?
Or
Do you use it to locate motivated sellers?
Could you tell me what advantage a broker has over an individual investor?
The reason I am asking is that a prelicense course starts here in a couple of days and I was thinking about taking it.