So you are thinking of hiring an agent to support your investment. Unless you choose a bad realtor, that’s a great idea in theory. Ideally, working with an agent should be an efficient way to find a deal and sign a contract quickly. When things go well, more time and energy can be devoted to other aspects of the business.
The problem is that not all realtors help your business. Some people may hurt it — and few agents know how to work with investors, so you are not their traditional customer.
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Everything traditional homebuyers and sellers need is a high quality agent. However, if you want the agent to help you with the acquisition, you need more. You need an “investor-focused” realtor, which is simply not suitable for some very good homeowner-focused agents. It’s a deal like a “round peg, a square hole”. Choosing the wrong agent wastes time and money, so you need to pay attention to the danger signals. (It’s also very frustrating.)
Fortunately, bad agent danger signals are easy to find. Pay attention to these seven characteristics of bad agents and don’t cause any pain to yourself.
Real estate licenses are not required for all investors, but some consider them to be an important part of their investment strategy. However, obtaining a license can be a lengthy process, including course work, exams, and background checks. Of course, you need to find a broker. Learn more about what distinguishes the average agent from a good agent, and get all the details about licensing in a detailed guide. How to Become a Real Estate Agent — Investor Guide..
Signs of a bad realtor
Protect yourself, your time and your money. Don’t work with a bad realtor! Pay attention to these seven danger signals. Helps you quickly identify agents to avoid.
1. Don’t ask about your goals or plans
Anyone can do the paperwork and collect the signatures. Good agents know how to ensure that they are suitable for potential buyers’ investment strategies and help them reach their goals. This is not a problem of lack of communication. Bad agents are just looking for someone with a pulse.
If the agent isn’t asking about what you’re trying to achieve, don’t bother to dig deeper.
2. Not interested in lifelong relationships
Good realtors know that their business is built on lifelong referrals. Working on behalf of the buyer leads to working on behalf of the seller — definitely if you are an investor. If the agent you’re talking about doesn’t seem to be interested in forming a lasting alliance of any kind, they probably see you as just a possible salary.
Your agents shouldn’t suggest marriage, but don’t spend any more time if they aren’t trying to feel your personality or personality.
3. I don’t do much business
Yes, this is important. The best agents get the most referrals and businesses.
Feel sorry for the agents that aren’t producing and don’t give them your business. It doesn’t help. It’s just stupid. Frankly many Authorized agents should not specifically work with investors. Giving someone a business out of sympathy prevents them from eventually realizing they are in the wrong industry. Don’t let pity make your decision.
Find a local agent now
The Bigger Pockets Agent Finder You can easily connect with realtors who know the local market and can evaluate real estate from the investor’s point of view. The mechanism is as follows.
- Choose your market
- Share investment standards
- Matching with real estate agents
4. Don’t speak real estate language
If your agents don’t understand how a loan, escrow, or offer works, they obviously don’t care much about their profession. Even a stupid person can close a deal. trust me.But they closed the deal and it was number one handle? Not so many. If your agents aren’t learning along the way, it means they are indifferent. Avoid them.
5. We offer the cheapest fees
Sorry, everyone: This is sad but true. If the greatest value of your agents is their cheap fees, that’s a problem.
Choosing a buyer’s agent is like consciously choosing to shop at the flea market to save money as they will reimburse their fees. It’s okay to do it, but know what you agree with. What you purchased may not work properly. And with the agent, you probably aren’t getting the best deal.
This also applies to agents who want to sell your property. If agents can’t negotiate their commissions, why do you trust them to negotiate your money?
6. Ask what you want to do, but don’t make a suggestion
You hire your agent because they are more experienced than you. If the agent is always asking for advice, that’s not a good sign. It’s okay to ask for feedback for affirmation, but if the agent leaves all the decisions to you, it’s a red flag.
In addition, you need an agent that does more than just perform motion. You want an agent to hustle. Do they hire a professional photographer or do they shoot the list themselves? Do they have anything to do with stagers?
If they have a list and it doesn’t sell, you should hear more than “We should lower the price”. What niche marketing ideas can you adopt? What minor upgrades can I make to make my property sell better? Need to hold another open house?
Do you have any suggestions? Run away — because they don’t know what they are doing.
7. Other agents have a bad mouth
Watch out for this fiery red flag. If the only valuable thing agents can provide is gossip or negative information about their competition, it indicates that they are not safe and do not seem very good. If an agent says too many negative things about other agents, avoid them.
8. Lies … or just manipulate the truth
Not to mention this, you definitely don’t want to deal with unethical or dishonest realtors. If you find them lying, go away before signing the list. (Or, if you already have one, go out if you can, or never use it again.)
If an agent encourages you to lie about the disclosures you should make, advertise false claims, or show other types of fraudulent or unethical behavior, this is not the person you want to trade. ..
9. Non-expert behavior
Non-professional agents can spend money on your transactions by turning off potential sellers-or simply spending time and energy on you. Non-professional behavior includes rude emails, vulgar jokes, blasphemous expressions, and late appearances.
Professional agents always provide quick response to emails, text messages, or phone calls. If they don’t reply to you right away and do what they have to do, there’s no reason to work with them.
10. Do not cooperate
It’s important to get the advice of an agent, but you’re also a real estate expert. If you believe the agent is stubborn or knows best about everything, there is no reason to worry. You will be constantly poking your head, and the trouble will be much greater than it is worth.
11. I don’t understand what your property is worth
Determining the value of a property is one of the most important parts of a real estate puzzle. The Wrong Realtors simply draw a two-mile radius around the target property to get the average amount per square foot. This is an inappropriate way to run a comp and judge its value. You can underestimate your home, leave money on the table, or overestimate it to increase the number of days in the market.
A good agent needs to perform appropriate comparable market analysis to accurately assess which home best mimics the property you are buying or selling. Only then can you get a reasonable list price.
Should your agent be investor friendly?
Investors aren’t looking for the same thing as a first-time homebuyer. In general, you need to find an “investor-friendly” agent. How do you know? First: Do they have any investment transactions? Do your investors’ friends and acquaintances recommend them?
There are three signs that agents are not investor friendly.
1. Lack of investor thinking
Good Investor Agents Have Homeowners Thinking In The Past What Investors Want to Understand needs.. For example, skylights can be a big selling point for homeowners. But they are famous for leaks. Many buy and hold investors avoid them all together. Swimming pools are often great for homeowners, but they have far more problems than they are worth for investors.
Agents focused on some homeowners have a hard time visualizing what a badly shaped home will look like after rehab. But as an investor, you need an agent who knows what your end users want. Whether it’s a future tenant or a homebuyer, it’s after the flip. You also need to understand what is cost-effective for rehabilitation and maintenance and what is most profitable.
In short, you need an agent that thinks in terms of cost-benefit and profit / loss.
2. I don’t know the structure
It is not essential for agents to have a deep understanding of construction costs, which is a great benefit. Agents should at least have a good understanding of what it takes to rehabilitate a property. Real estate investors generally deal with real estate that requires work. Homeowner-focused agents focus primarily on turnkey or minor fixer upper properties.
For fixes and flippers, it’s a big advantage to have someone on your side who knows what they’re talking about. Agents unfamiliar with rehab can be overwhelmed or even try to stop buying, regardless of the number.
3. Talk you to the deals
This is an important danger signal for all realtors, but investors need to pay particular attention. Typical homebuyers may not know a good deal when they see it, so agents may need to try to convince them to at least strongly consider real estate.
Investors want agents who understand that no one will open or destroy their bank account. They simply give advice without trying to convince them. Hopefully, if the agent doesn’t believe it makes sense, he’ll be willing to talk to you from the deal. This shows that the agent is both a quality agent and a quality investor-oriented agent.
A good realtor on your investment team will be in your best interests. It’s “trendy”, so don’t just cancel all agents.
That said, if you decide to go the agent route, be sure to look for quality agents with an investor-oriented focus.
Did you have a bad experience working with a real estate agent? Were there any signs of warning?
Share your thoughts in the comments below.