How do they make money?

I am in the process of buying or renting a house. I have a realtor helping in the search. If I rent how does he make her money and how much approx? Renting I will save more money that if I buy since I think I might be moving in less than 2 years. I think I found a house for rent brokered by a realty co.

I think I can deal directly with them but I am not sure how what to expect or if I can negotiate the rent they are asking for.

What advantages or disadvantages would I have by having the realtor help me.

Once you rent a house, aside from not building equity, what are the disadvantages.

Any tips you can provide are highly appreciated

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The advantages of buying are:

1. They stopped making land. It becomes increasingly scarce.

2. Real Estate is tax advantaged

3. Each piece of real estate is unique. The location is unique, the buildings on the land are unique.

4. If you own a place and rent it out, the tenants help pay your mortgage. You may use the piece of real estate to generate some kind of income.

5. Even if you don't rent it out, you property will likely appreciate over time, assuming the location has potential. Before you buy in your area you must ask yourself and a professional Realtor about different communities. You may buy something cheaper in a not so good area but may also have less potential for appreciation OR you may buy something in a good area that's more expensive but it may be worth your investment.

The first step I suggest is to find a good Realtor. I suggest http://www.ReferredPro.com

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Here are some reasons to use a Realtor when renting:

1. You'll have a real estate professional backing you up, in case things go sour. If the landlord doesn't look out for your best interest, your Realtor will. Your Realtor will represent you and hold the listing agent and the landlord accountable. If the listing agent is not communicating openly with the landlord, then your Realtor can communicate with the listing agent's broker.

2. If you are relocating, it's especially a good idea to work with a Realtor. You may not know many people around your new home. Your Realtor may help you to get you aquainted to your new place of residence. They'll be able to refer you to other professional services you may need. Realtors refer their clients to many other professionals every day. Be sure to ask your Realtor if they have experience working with Relocation clients.

3. The benefit to landlords, as well as tenants, is that Realtors know which forms and disclosures to use to make sure both parties know their rights before deciding to come into agreement.

4. Realtors also screen buyers and do a background check for landlords. This tends to reduce a lot of risk and increases the chances of having a good tenant.

5. Most importantly, a Realtor can help reduce a lot of headaches, time, and energy by showing you homes, communicating to all parties, explaining the lease agreement and disclosures, writing an offer and signing, accepting an offer and signing, preparing all parties for the move, making sure things go as planned, doing a walk-through with you before you move in and taking note of discrepancies, taking photos of the unit (in case you are out of town), give you phone numbers of utility companies, etc.

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You should use your agent to apply for the rental house.

You will submit an application where you specify the rent you offer and the start date. You will have the most ability to negotiate rent if you have a good income ratio, credit score, offer a larger downpayment and a longer lease agreement and sooner start date.

The commission on rental houses is generally one month of rent. The renting agent will share 1/4 to 1/3 that amount with an agent who brings a renter. You will just help the landlord's agent make a little more money if you do not use an agent.

While the compensation is a lot less per transaction and the income is a lot more predictable and houses rent out a lot faster than they sell. It is rare for a decently priced rental to sit for more than 30 days. While 60 to 90 days is typical for sales, and the marketing is a lot more competitive.
Have you thought about buying a house that needs some work and selling it in 2 years? you could do even better than renting...if interested you need to run the numbers.

The realtor typically gets a month's rent as a commission for locking you in.

As for buying, look for a budget realtor, or a help u sell type place for buying or selling a house. The realtors get paid way too much for showing you around a few houses and then filling in the blanks on a standard set of paperwork

Having said all that, you really do feel pround when you drive up to your house, you never feel like that when you rent.
If you are buying a existing property I would go with a realtor, otherwise you could get taken for a ride.