Buying, selling and operating apartments in Portland

Role of Broker | 17 April 2010

Having one more team member with your interests is to your advantageA broker representing a buyer is usually paid out of the seller’s proceeds of the sale and the amount of commission is usually not affected by the number of brokers. The commission is the same, so having one more team member with your interests is to your advantage. The broker you select should know:

Market – He should know comparable sales and what is listed available. If he has a good network, he will be aware of unlisted properties which give you more choices.

Financials – A good broker can generate property specific financials – How exactly is a property doing? What’s your return? How does it compare to other properties in the same area? How can the property make you more money? Get a good understanding of how a property is actually performing.

Bank – A broker is NOT a finance person, but he should have the contacts and ability to advise you on financing options and what you can afford. However, identifying your mortgage person early in the process is your best resource for finance issues.

Rents – Get a rent survey to determine where you stand versus the competition (other rental units). Do you have the lowest rents on the block or the highest?

Dual agency – Be aware when a broker represents both the buyer and seller. If you are dealing with the seller’s broker he will have a higher loyalty to the seller.

Physical Issues – Your broker knows experts who can tell you what to expect in terms of ongoing maintenance and items that need repair after you close. In addition, upon inspection, he can point out maintenance considerations that add appeal to your property and help you save money.

Apartment Operations –You need to put together a plan to preserve and grow your income once you purchase a property. A broker should understand apartment operations well enough to do this. Using this information, he can help you decide on an offer that allows you to make a profit.

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