$$ Realtors can make you Money $$
When you seriously consider all of the reasons I have outlined above, it should become obvious why it is so much easier to deal with a Realtor who has access to thousands of listings, can do the research for you, filter out the desirable properties for you to look at, and can advise you on contracts, closing agents, neighborhoods, zoning, schools, and development prospects for the area.
When I am looking at a property to buy or already own a property that Iím thinking about selling, I will ask several Realtors what their market valuation of the property is under several different conditions. I want to know what the property Is worth
A. As is
B. With minor cleanup and paint work.
C. With what specific renovations (bath, kitchen, etc.)
If doing renovations does not substantially increase the value of the property over and above the cost of those renovations or beyond the cost of cleanup and paint, then weíre just going to clean and paint. I use these cost projections to determine what I will offer on a property and if I cannot buy it profitably, then I do not buy it at all. Always remember when you make an offer, that no matter how ridiculous it may seem, you do not know what the seller will do today. For all you know he just won the lottery and doesnít care about getting every cent out of the house, he just wants it gone so he can go to Hawaii. It could be for health or retirement reasons, family crisis-illness or death, or just being ready to move on today. An offer they may not have taken a week ago may be looked upon favorably today. You have absolutely nothing to lose by trying to make the very best offer you can. The seller will never accept an offer for 60 or 70% of the value of the property from you if you do not make it!
Once I have successfully acquired the property, done what ever cleanup or renovation I choose to, and am ready to sell it, I list the property with a Realtor. I have set my price to take Into consideration the 6 to 7% Real Estate commission and other closing costs. The reason I do this is that I do not want to be called while Iím having dinner with my family to show the property. Further, I have no wish to be called on weekends, nights, or holidays. I have no wish to place ads in the paper and other media and continue to pay advertising bills until the property is sold. The realtor will do all this for me and through their MLS network, I have hundreds of salespeople and brokers trying to sell my property. Many of them will have buyers waiting with money in their hand to buy my property. I am thrilled if I list the property and they sell it in a week. I donít want to wait three or four months or longer to sell.
If you work with the Realtor, buy the property right, have minimal cleaning and rehab, it is likely that you will then be able to sell property through a Realtor quickly, easily, and most importantly profitably. Why make the whole process any harder than it has to be? Using a Realtor will save you time and effort and make you money. I truly believe this and I think if you follow these guidelines you will find that it is so.
Good luck in your Real Estate ventures.