Looking for Buyer Broker - Page 2 - PhillyBlog

NYCtoPhilly · #11 (**permalink**) 05-28-2007, 01:47 PM

Quote:

Originally Posted by Maxwell

Ok, It is pretty simple, the deal would be done thru a broker not an agent.
An investor who does not need to be led around by an agent, a buyer/investor who knows the ropes and knows what he wants, knows how to do all his own due dilligence, knows how to do all the leg work and phone calls, comps, etc etc..
Really only needs the broker to do the legal paperwork.

Now the broker is happy to do absolutely nothing for the most part, wastes no time running around with the investor and makes a few thousand dollars easy for a fraction of the work he would have to do for a typical client. Both parties win, the investor gets a kick back to help pay closing costs and the broker makes his rent money for one month doing very little. Win Win ! It seems pretty simple.

Who would not like to make money for doing very little. I know in my business it would go without saying. The problem is no one likes change, but change is always inevitable. No one likes their racket to be changed.

I understand how an agent with a typical client would not understand this, it has nothing to do with an agent though. I also understand this is not for most brokers or buyers but for those will to do the leg work and those with enough knowlege this should be a great situation.

Isn't a broker someone with a licence who opens up an office hires agents to go out and make him or her money. Whats the difference between a hired agent or an experienced investor ?

You seem to be confusing RE professionals. Is there really a differnce between a RE Broker and Agent? Based on what services you say you need, ALL you need to do is to hire a RE attorney that will assist in the legal paperwork.

Tim K · #12 (**permalink**) 05-28-2007, 02:53 PM

Quote:

Originally Posted by Maxwell

Ok, It is pretty simple, the deal would be done thru a broker not an agent.
An investor who does not need to be led around by an agent, a buyer/investor who knows the ropes and knows what he wants, knows how to do all his own due dilligence, knows how to do all the leg work and phone calls, comps, etc etc..
Really only needs the broker to do the legal paperwork.

There is a HUGE flaw in your scenario. How are you going to "do all the legwork" as you say? You don't have access to the MLS, public records takes 2-3 months to be updated with sales, and you aren't licensed, so you can't show yourself the properties. You could call every listing agent and ask them to show you their property, but then being the one who showed the property to you the buyer, they would then be entitled to double the commission. At best you might be able to negotiate something with the seller's broker, but based on the wording of the contract they would be entitled to keep the whole commission.

Quote:

Now the broker is happy to do absolutely nothing for the most part, wastes no time running around with the investor and makes a few thousand dollars easy for a fraction of the work he would have to do for a typical client. Both parties win, the investor gets a kick back to help pay closing costs and the broker makes his rent money for one month doing very little. Win Win ! It seems pretty simple.

Most brokers don't spend time running around with clients....thats what agents do. So I don't think there is an advantage to a broker to, as you say "do nothing and make a few thousand dollars". If I represent a buyer who buys a house my broker gets a few thousand dollars for what you call "doing nothing" so in the broker's mind what is the advantage? [Note that brokers don't do nothing....aside from all of the actual work they do, they also are assuming liability for every person working for them as well as spending money on rent, utilities, insurance, marketing, etc]

Maxwell · #13 (**permalink**) 05-28-2007, 08:59 PM

Wow, I can't believe all the negative reaction coming from the agents out there. In my original posts I said that is exactly what old school agents reaction would be. I am starting to feel like I am in the twilight zone where no one has heard of anything I am saying.

Like i said I am not a professional by a long shot, I was looking for this type of deal in Philly because I had heard about them and read about them in other markets. This is not my imagination, this is happening in other large markets by a number of growing companies. It is catching alot of attention and by all means it should. I am going to do some more homework on this and inquire with company's doing this already. it's obvious i either have my facts wrong or no one is open to this senario around these parts yet.

I don't have access to the MLS ? yes I do, I have the broker I am working with send me the MLS or go online to realtor.com and choose my choice properties to be shown. The broker would show me a few properties on his or her schedule not mine.
See an investor can do the work really without seeing the property for the most part by the numbers. An investor is not interested in how cute the curtains are ,it's all about numbers,cash flow, location, and local employment etc....What I am trying to point out is that an investor already knows most of the important information, seeing the property is the icing on the cake. An investor is not going to waste anyones time if the numbers don't jive to begin with. Unlike a house hunter looking for a home who will look for 6 months to a year dragging the agent around endlessly.

Again, this is all new to me too and I need to find some more details to make this case. I will be looking to add to this. Please feel free to add more coments. I am learning from all coments on this subject.

Tim K · #14 (**permalink**) 05-28-2007, 10:38 PM

I wouldn't call this a negative reaction just because people point out problems with the scenario. Its not like people are screaming about you trying to put them out of work or destroying their careers. As I said, I'm not opposed to it nor afraid of it. I just don't think it would work on a large scale. I could see it working for a few people who find a small "corner office" broker to go along with your plan. But, for the reasons I gave earlier, I don't think that it could work on a larger scale. I doubt any of the brokers at the "named" real estate companies would ever go along with it either.

Quite frankly, there are a number of "investors" who simply spend a few hundred $'s and get their license. Then you can hang your license with a broker, join the MLS, let yourself in to properties, and waive your own commissions. I think this makes more sense financially too as your expenses are far less than the amount of money that would be going to the broker in your scenario.

Maxwell · #15 (**permalink**) 05-28-2007, 11:19 PM

hi Tim, yes you are right, that makes total sence. I will give that serious thought. Thanks so much for your insight. I appreciate your thoughts.

Tim K · #16 (**permalink**) 05-29-2007, 11:06 AM

Quote:

Originally Posted by Maxwell

hi Tim, yes you are right, that makes total sence. I will give that serious thought. Thanks so much for your insight. I appreciate your thoughts.

I just sent you a PM with some other info....

ct23 · #17 (**permalink**) 05-30-2007, 04:45 PM

I like Tim's suggestion, that Maxwell get his license and be his own broker. The education will be worth his time and he'll get cash back on almost every deal he does, except in cases where agents working as principals don't get a share of the commission. And he won't be wasting anyone's time or getting frustrated trying to work around other people's schedules.

What Maxwell seems to be describing, distilled to its essence, is a transactional broker. Agent gets paid a point or a point-and-a-half to do the paperwork for a volume buyer. The seller and his agent will be happy and so long as the buyer covers his butt legally everyone's happy. Everything old is new again.

REALTOR - Matt · #18 (**permalink**) 06-04-2007, 11:05 AM

Quote:

Originally Posted by Maxwell

Isn't a broker someone with a licence who opens up an office hires agents to go out and make him or her money. Whats the difference between a hired agent or an experienced investor ?

A broker owns/runs the company or the branch of that company, but most brokers do not take listings around here. It is a conflict of interest for many brokers to take listings or do their own business because they would be in direct competition with the people below them, the agents. I have only seen brokers of very small companies take their own listings, because they only have 2-4 people working there.

tbdiscovery · #19 (**permalink**) 06-27-2007, 04:56 PM

Is there any new knowledge regarding this? Any updates?

ct23 · #20 (**permalink**) 06-27-2007, 05:06 PM

Interestingly, I was just talking to someone about this yesterday. A customer (NOT a client) of mine who lives in the northern Virginia suburbs of Washington, DC, asked me to give back a substantial portion of my commission so that they could effectively pay a lower price for condo.

I talked about the situation, both generally and specifically, with lots of people and it turns out that not only is this never going to happen in Philadelphia, it's also ILLEGAL in Pennsylvania! For an agent to credit a buyer a portion of his commission amounts to a kickback and is therefore a violation of the Real Estate Settlement Procedures Act (RESPA). A title company will not make the change on the Settlement Statement, and if a buyer's agent is foolish or shady enough to give cash back away from the table he deserves what he gets.

I sincerely hope this whole silly thread goes away now. Real estate agents work hard for their money, harder than most people today think or want to believe, and DESERVE THEIR FULL FEE FOR SERVICE, ESPECIALLY BUYERS' AGENTS.