Offlineif i have a real estate agent working with me, what would be a good pay and would he be working under his office or mine? i just want to make sure before i shop for one. also what about inspections, can an agent inspect properties legitimately without contacting a city inspector???
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First, great job for finding a good agent! That is not always an easy task. Second, a RE Agent get paid 3%-6% commission just like on any other deal they would do. The advantage for an agent to be working with an investor (like you) is to be getting more deals done. More deals = more money. The agent will be working under their RE Broker/Agency's office and no, an agent cannot do legitimate inspections. You need to hire a licensed home inspector - they are normally around $100-$400.
Good luck
Karen
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There are 2 types of home inspectors:
those the buyer pays for (generally) because he needs (before loan funding can occur) and/or wants, and those that are mandated by the city. The buyer will still pay for the city inspector (whom he has no choice over), but they are a requirement by the city, and usually a certificate of occupancy won't be issued until that inspection is completed and on file with the city.
If your city doesn't mandate a city inspection and you don't want an inspection, you are not required to have one in an all cash deal. Many properties are exchanged daily without any inspections.
It's better to deal with the devil you know than the one you don't so I recommend them.
As far as realtors go, I've seen commissions range from 2.5%-7%, but that isn't always true. Sometimes a piece of property is so cheap that a percentage isn't high enough for a realtor, so they may impose a flat fee of say $1,000. Just make sure that whatever fee agreement you make with your realtor as a seller, that it includes the buyer's agent's commission, or no buyer's agent will bring any prospective buyers your way.
I've even had sneaky realtors try to best the buyer's agent with commissions that aren't equal splits, and I've nixed them. Both agents deserve equal splits, and a seller's agent who tries to take more than half is not someone I want to deal with. It shows bad faith and greed to me.
Of course, if a listing agent (seller's) also procures a buyer, that agent is entitled to the whole commission (usually split with that agent's broker/owner).
Hope this helps!