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Traditional agent vs. REO specialist?

Last Post 14 May 2008 10:33 PM by Melinda. 4 Replies.

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Michael J.
Posts:4

25 Jan 2008 03:50 PM
I am a first time home buyer and have done quite a bit of research on real estate agents. I would definitely use one but my question is should I go for an established real estate agent or for one that specializes in foreclosure properties? I want to use the home market downturn and find a great deal but at the same time I want to make sure my interests are very well protected and I don't get into a messy situation with a foreclosed property. Michael

Douglas Ingram
Posts:26

26 Jan 2008 09:30 PM
You are asking all the right questions ... The market correction has created some awesome opportunities. I think many of us will look back a decade from now and kick ourselves for not trying to take better advantage of the market. I would recommend being extremly careful in your selection of a realtor. You want to find someone who approaches real estate from an investment perspective first and foremost. This is a very large asset and all the common rules apply. Sometimes rookie realtors don't ask the hard questions and tend to focus on the transactional side of the equation too much. That being said I would look for an accomplished investment-focused realtor to help you. Another option would be to work through an investment oriented company. These types of firms often get pre-foreclosures, etc. that can be spectacular deals.

Michael J.
Posts:4

28 Jan 2008 03:52 PM
I want a deal but at the same time I am concerned that foreclosures can be a long stretch for a buyer like me. What if there is work to be done to the house? Can I still do a full blown inspection if I am looking at a foreclosed property? Michael

Russ Palermo
Posts:1

08 May 2008 01:28 PM
Hi Michael, Responding to an old post but I'm going to give you a biased opinion here...well biased and very experienced. Find yourself an agent who works with or has experience with investment properties. Look money means something and these agents if they are worth a lick should be able to find you a property at a great price with enough room to upgrade it and you'll still come out thousands if not tens of thousands ahead. I'm an investor turned broker and can tell you first hand that the mind set is much different with investor agents. Their mind-set is immediate value and future gains. The good ones will tell you that if you are not embarrased by your offer then you are bidding too much. The market, IMO, is still overvalued in most areas so even though some consider bidding low is offensive the good investor agent will respond they are speculating and bidding value. Sticking their client in a house at 10% disount last year would leave the investor 5% over market value today. Anyway, I've got a lot to say about buyers agents and the way the system is rigged towards commissions based on sales price but I'll save that for a blog someday. A good investor agent can find your dream home. will have reputable contractors on hand and save you lots of cash. Best of Luck!

Melinda
Posts:2

14 May 2008 10:33 PM
I guess the follow up question will be where do you find a good investment oriented agent? My experience has been that it is tough to find a real pro when it comes to investment properties - they need to know a bit from everything (finance, negotiations, local knowledge etc.).

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