‘I want to invest in real estate which means I need a realtor.’ This is one thing that goes through most people’s minds when they look into buying a building or a piece of land. For years now, estate agents have done a good job at ensuring everyone thinks they are a necessary part of the process. In truth, an individual can do it alone as long as they have the confidence and foresight. Sure, a professional does come in handy, but they also cost a lot of money. If you don’t have the money or trust to hire a realtor, here are your next moves.
Research The Market Price
One reason investors hire estate agents to for a valuation. They want to know what the property costs and you are no different. The thing is you can figure out a competitive price without giving away 5%. All you have to do is find out what the rest of the properties in the area cost and compare it to the house you want to buy. If the features are the same, the value should be similar, too. Even if they have different characteristics, it is not hard to research how much value they add and come to a new figure.
Don’t Reduce Your ROI
You are investing now to make money in the future. It is a typical story and one that works. Well, it does if the cost of the investment doesn’t exceed your budget. Unfortunately, this might be the case with a realtor by your side thanks to their cut. On the face of it, 5% or 6% doesn’t seem like a significant amount, yet it comes to a considerable chunk if the property is worth hundreds of thousands. Lots of investors don’t factor this into the cost when they make an offer, and it comes back to bite them on the backside.
Hire A Lawyer Instead
The process is complicated, so having an expert by your side is a good idea. However, one who demands a percentage of the total investment is too expensive. Thankfully, an investment lawyer is a cheaper option because theirs is a set fee. The other choice is a property investment company. Even though they take a cut, they offer a comprehensive list of services such as marketing the property and managing its long-term value. If they make your investment more profitable, you will make more money in the process. In most people’s view, that is worth the money you will have to pay.
Use Online Marketing Tools
Realtors will tell you they generate leads, and this is true. But, you don’t need them to do that any more thanks to the internet. By going online, it is possible to sign up to numerous listing sites to garner more interest. And, with the help of SEO it is not unrealistic to bring people to you instead of the other way around. Even if you don’t get much interest, it doesn’t cost a penny.
The bottom line is that agents do have a role to play. But, if you are savvy enough, you can outsource their tasks to others or do it yourself.