When you start out in the business of investing in pre-foreclosure homes, one of the most important decisions will be whether, and to what extent, you use a real estate agent to find and negotiate the purchase of the property for you.
Real estate agents are professionals licensed to represent the buyer and / or seller in a real estate transaction.
Because they deal with day-to-day nature, usually focusing on a specific geographic area and often on a specific type of property in Fishtown Philadelphia, they can often provide invaluable expertise of the properties in a particular area.
Plus, a highly skilled agent will be adept at negotiating, and therefore should be able to negotiate a better deal for you.
Therefore, the buyer agent, such as realtors, they are compensated based on the sales commission split. The Commission is a percentage of the sale value of the property.
The buyer agent has a fiduciary duty to act in the best interests of their clients. Moreover, the successful buyer agents, especially those investors who represent, know that they will do better in the long run if they really serve and retain their clients.
If you have a strong relationship with the buyer's agent and they have good contacts close to the seller's agent representing the home pre-foreclosure or deal in the property as their own, you may have the advantage of being "first to know" when a new home to be, or may become, available.