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Do I need a buyers agent in a 1031?
Posted on 1/26/22 at 12:48 pm
Posted on 1/26/22 at 12:48 pm
I've decided to go with the board's recommendation with IPX 1031 and they will handle the subject properties. Do I really even need a buyer's agent for the interested properties that I find? I will be the one finding these properties for submission, so what purpose do they serve and am I missing something? If I identify the property and use the sellers agent in conjunction with the 1031 company, shouldn't my bases be covered?
5
Posted on 1/26/22 at 1:07 pm to Shamoan
No. Other than finding you available properties, the agent doesn’t really do anything else. Having an agent could also increase the Purchase Price. The seller may have a listing agreement with Seller’s agent where if there is only 1 agent then commission is 3 or 4% but if there is a buyers agent the commission is 6% split between the 2 agents. I would hire a real estate attorney who can help negotiate the contracts, complete due diligence and help you close the deals.
Posted on 1/26/22 at 1:40 pm to jrhoad1
quote:
The seller may have a listing agreement with Seller’s agent where if there is only 1 agent then commission is 3 or 4% but if there is a buyers agent the commission is 6% split between the 2 agents.
This may be true, but as a buyer, you have zero way of finding this out. It's an agreement between a seller and a broker. And just because a commission MAY be smaller if a buyer represents himself, there is no reason to think that savings would be passed on to the buyer. Often, if a listing agent sells the home himself, he keeps the entire commission.
It's every listing agent's dream to have an uninformed, self-represented buyer who thinks they're saving money this way. The listing agent is hired by and works for the seller, period.
Posted on 1/26/22 at 1:59 pm to jrhoad1
100% wrong
The commission is being paid regardless. Buyers should be represented if they are not an expert in real estate contracts and the seller has agent. period. The sellers agent is obligated to represent the best interests of the seller.
The commission is being paid regardless. Buyers should be represented if they are not an expert in real estate contracts and the seller has agent. period. The sellers agent is obligated to represent the best interests of the seller.
Posted on 1/26/22 at 2:38 pm to Shamoan
The fact that you are doing a 1031 doesn't change whether you should have a buyers agent or not.
Other factors influence that decision, not a 1031.
Other factors influence that decision, not a 1031.
Posted on 1/26/22 at 2:58 pm to Shamoan
If you want the inside track on actual good/off market deals for this, have an agent who flips property and has lots of rental property themselves. Be loyal and they'll continue finding golden nuggets out there. Good luck! 
Posted on 1/26/22 at 7:12 pm to Shamoan
No, get a Purchase Agreement, execute it..place the name of the closing company..give a copy to title company and attorney holding escrow..also, on the PA state that you intend to..utilize a Tax Deferred Election at no cost to the Seller.
Posted on 1/26/22 at 7:19 pm to Shamoan
maybe, but definitely a CPA 
Posted on 1/26/22 at 9:01 pm to jrhoad1
quote:
No. Other than finding you available properties, the agent doesn’t really do anything else.
I agree with this part 100%.
If you can find your own deals in the allotted time frames you will be fine. Market is tight for buyers though.
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