Real Estate Brokers have a rather strange job and their entire job is an exercise in conflicts of interest. Brokers almost always represent the Seller and it is very rare that a buyer’s broker is used except in very limited circumstances. Brokers are obligated to get the best price for a home that they possible can since they work for the seller. They are rewarded for this because their pay is directly related to the purchase price. In order for a broker to make money they must sell homes,which means they must also keep buyers happy and negotiate on their behalf as well. Brokers also have their own listings where they will not have to split the fee with anyone else and many will attempt to steer you in that direction. Be wary as there may be many more homes and some may be better suited to your desires than what you are being shown.

If you determine that you need to use a broker to find your home , there a few tips that will help you get the best results possible:

1. Don’t sign anything. Brokers will sometimes attempt to get you to sign an exclusive contract whereby you are bound to use only that broker.

2. Use multiple brokers as each broker has their own area where they are prevalent. A broker experienced in one town may have little or no knowledge in another town, even if they are geographically close.

3. See houses in day trips. Always see a house in the day time, not at dusk or night as it is too easy to miss things that way. Also see multiple houses at a time. If you are going to see a house with a broker, there is no reason not to see three, four or ten houses on the same excursion.

4. Don’t be bullied. If you want a house with at least three bedrooms, then do not allow the broker to take you to see houses with two bedrooms.  If your budget is $300,000, then there is no reason to be looking at houses in the $400,000 dollar range. A little more is ok, as price is always negotiable, but there is no reason to be looking way out of your price range. These little things turns into a waste of time and become very frustrating.

Related Posts:

1. 7 Days To Owning A Home: Day 1 – Your Credit

2. 7 Days To Owning A Home: Day 2 – Financials

3. 7 Days To Owning A Home: Day 3 – Where To Live?

4. 7 Days To Owning A Home: Day 4 – Where Do I Find My Dream Home?

We are no longer in the world of inflated prices, inflated appraisals, and banks lending money just because someone asked for it. However, many of our investors are making tens of thousands of dollars in profit on every house they sell.  

Don’t misunderstand me. If you are careless and do not do your homework, you can lose a lot of money. You need an attorney to guide you, a Real Estate agent/broker who can inform you about the area, and some knowledge of the area. However, if you put together a good team of people to help you, there is money to be made. Here are my suggestions for how to invest wisely in Real Estate in the new economy:

1.  Get a good crew and don’t be afraid to get in there and get dirty.

You need to have a contractor that is dependable and insured. You need to be able to count on them to work quickly and efficiently. Ask for references. You also need to get into the house and get dirty. Make sure you stay involved in the construction process so you can have the house “buyer ready” as soon as possible.

2.  Find a hard money lender.

A hard money lender will make this process go smoother. You are going to pay more interest than you would with a conventional loan; however, you will also receive the money quicker and once you have gone through their background process, you don’t have to do it again. Once they give you money, they almost always will give it to you again and again.

3.  Hire an attorney who handles these types of transactions.

You do not want to be represented in these types of deals by an attorney who does Real Estate “on the side”.  This needs to be their primary area of practice so that any and all issues that arise can be handled quickly and efficiently.  Remember, the idea is to move the property as quickly as possible.

Not every house is going to be a winner.  You are not always going to make thousands of dollars on every house. Even the most seasoned investor has properties that wont sell or don’t sell for as much as they want. The trick here is quality and quantity. Investors need to move more inventory and create beautiful homes.  

If you are going to give investing in Real Estate a try in this new economy, make sure you talk to a seasoned professional and ask as may questions as you can. There is no price on experience.

The risk is high but the reward is great.