Jeff Bezos Didn’t Use an Agent to Buy His $165 Million Estate. Here’s Eight Reasons Not to Be Like Jeff Jeff Bezos Didn’t Use an Agent to Buy His $165 Million Estate. Here’s Eight Reasons Not to Be Like Jeff


Jeff Bezos Didn’t Use an Agent to Buy His $165 Million Estate. Here’s Eight Reasons Not to Be Like Jeff

Written By: Jaymi Naciri
Monday, March 16, 2020

The property is, admittedly, stunning. Geffen reportedly auctioned off about 11 million worth of original furnishings, which he deemed too musty and museum-like, after he purchased the property, said The Los Angeles Times. But he did keep an imported wood floor"said to be the one upon which Napoleon proposed to Josephineas well as the paneled walls supposedly carved by a Chippendale.

Other impressive features, according to Architectural Digest, include a George III>

But 165 million isA LOT. Some real estate leaders have wondered aloud whether he overpaid. Others have mused that you cant put a price on a veritable museum. But what stands out for us is that Bezos and Geffen made the deal without involving real estate agents on either side. Before you start thinking, Well if its good enough for one of the worlds richest men, its good enough for me, check out these xx reasons you should definitely use an agent on your next purchase.

Because you dont have Bezos money

Part of what a good buyers agent does in advising clients is: Find you a home you love, but also one you can comfortably live in and afford. No one wants to be house poor.nbsp;

Theres no worry of that with Bezos, despite the exorbitant price tag. The 165 million is approximately one-eighth of one percent of his 130 billion net worth. A measly little 165 million isnt going to break him. Asnbsp;The Vergenbsp;pointed out, If you make 60,000 a year, thats like spending 75 on a house.

Also, its not the only property he has purchased recently. In addition to the Warner Estate, Bezos recently purchased a 90 million plot of undeveloped Los Angeles land, which he is considering an investment, a source told thenbsp;Wall Street Journal. And last summer, the Amazon chief made headlines when henbsp;purchasednbsp;not one but three Manhattan apartments overlooking Madison Square Park for some 80 million.

Bezos also reportedly owns several condos that overlook NYCs Madison Square Park, a 30,000-acre estate in Medina, WA, a huge ranch in west Texas, and two additional properties in Washington, D.C.

But what happens if you buy too much house? When you dont have billions of dollars as a safety net, you need to know youre in good hands with a professional who has your best interest at heart.

Because you dont have that 165 million in cash

There hasnt been any word on whether Bezos intends to mortgage his new manse, but we doubt it. Not surprisingly, his past purchases have been rumored to be all-cash deals.nbsp;

But it reminds us of a story we love. After L.A.s 924 Bel Air Road sold for 94 million in October 2019a huge cut from the original 250 millionnbsp;list pricethe anonymous buyer turned around and took out anbsp;58.2 million, 10-year loan from HSBC Bank USA, according to property records, said The Business Times. That would make the monthly mortgage payment about 650,000

Carry the nine, multiply that by xand, yeah, the possible mortgage payment on a 165 million home makes our collective heads hurt.

All-cash deals are on the rise among luxury homes, which is hard to comprehend for us regular folks who are just doing the best we can to cobble together a minimum down payment. When your money is on the line, you want to do everything you can to protect yourself. A real estate agent acts as a fiduciary of sorts, with training and expertise that can help give you peace of mind, whether youre spending 165,000 or 165 million.nbsp;

Because you dont have a yacht

I mean, arent all real estate deals made on a 590 million superyacht? Jeff Bezos and David Geffen hammered out the Amazon chiefs record-setting 165 million purchase of Geffens Beverly Hills estate while socializing on the former music moguls famous yacht, the Rising Sun, said The Real Deal.nbsp;

Because you dont want to do your own negotiating

Really, you dont. Check out this article from Inc. that called Bezos and Amazons search for its new HQ2 a master >

Bezos competitiveness and business savvy are legendary. Not that were saying yours dont comparebut, lets be honest. Unless youre a real estate agent or an attorneyor some other type of professional who gets paid to negotiate and/or argue for a living, its just best to leave this to the professionals.nbsp;

Because you dont know what you dont know

You might be far out of your element when it comes to reviewing and understanding the multiple documents involved in a real estate deal, and you should have a thorough understanding of what youre getting into regardless of whether youre buying or selling, said The Balance. Purchase agreements alone can top 10 pages in 2019, not to mention federal, state, and local document requirements.nbsp;

Home buyers may be tempted to purchase without using their own agent in certain circumstances, like if they happen into an open house and talk to the sellers agent or if they are buying new construction. But there are important reasons to work with your own agent in either case.nbsp;

Yes, a sellers agent might be able to work both sides of a deal, but having your own agent better ensures that you have someone in your corner whose priority is getting you the deal you want.nbsp;

Buyers are sometimes unaware that they can work with their own real estate agent when buying a new home. Each development has its own rules, but, in general, the agent must accompany you on your first visit to the community or they will forfeit any available commission. That commission may also be lower than what the agent is accustomed to; this will generally be advertised as a broker co-op or broker participation, with a percentage set by the builder or development.nbsp;

Working with a real estate agent on a new construction home may not yield you a better price; builders are typically >

Because thats just too much house

Seriously, who needs 13,600 square feet on nine acres, with expansive terraces and gardens, two guesthouses, nursery and three hothouses, tennis court, swimming pool, nine-hole golf course and motor court complete with its own service garage and gas pumps, as Architectural Digest puts it. No one. No one NEEDS this. But, clearly, this purchase wasnt about need.

A good real estate agent will su>



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