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If you’re an investor in today’s market and you don’t have cash in your pocket to burn, then you’ve got to be communicating directly with the decision maker. We think that working with the listing agent instead of talking with the seller themselves will net us a better deal in the long term, but that is FAR from true.
The listing agent is employed by the seller; the seller will be the one to pay their commission at the end of the day. Why would the listing agent treat you better than the guy paying his bills?
I hear this a lot from real estate investors of all experience levels tangled up in the gatekeeper’s web and unable to craft creative deals. This is why is it CRUCIAL for you to not only be talking with the seller directly but also to be there when the seller is presented with your offer. You have that RIGHT and it’s written in the realtor’s code of ethics.
Here’s my solution: hire a BUYER’s agent. “But Tyler, the seller is the one who pays the buyer’s agent!” Right, and that’s all the more reason you need to hire them. Now you’ve turned the tables and the agent is looking to YOU for their meal ticket instead of the seller. You can even have it written in the contract that you are responsible, not the seller, for their commission.
If you’re whining about having to pay a real estate agent, don’t bother: you’ll be paying for them, directly or indirectly, no matter the scenario. The seller, just like you, is having the numbers make the decision and they’re factoring that fee into what they’ll pocket at the end of the deal.
One thing you need to ALWAYS remember is that no matter how scared you are about negotiating and talking money with the seller, the seller is JUST AS SCARED as you are. They stand to lose money just like you. It’s easier to talk them when that power dynamic fades away, and you’re just two people trying to find a mutually beneficial solution to a problem.
Make sure you’re working with the seller directly, regardless of whether the property is listed or not. You can’t solve a problem you don’t know about, right? Make sure you know ALL the problems.
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