Be careful: a real estate agent could lead you astray
The real estate agent is a valuable source of potential business for you as an investor. They have access to the multiple listing resources and of course have a monopoly on this information so they need to be part of your game plan as an investor. Working with real estate agents can be difficult depending on the agent.
Some of the factors you should consider include the following:
- When you want to buy a property, offer them a short closing date. One way to get an agent to take you seriously is to offer them a quick closing date. There are few things that excite an agent more than the idea of receiving commission from him in the next 14 days. If the agent is presented with another offer, she will generally advise the client to accept the offer and close it rather than accept a higher price offer. One of the reasons is because it is better to have “a bird in the hand, instead of two in the bush”.
- See if you can make a creative offer to the owner in person, rather than through the agent. If you have an offer that needs to be explained to the owner in a way that highlights all of its great benefits, you may need to help present the offer in person or with the agent. If you present that type of offer to an agent, it may not even reach the owner and will certainly be given a lower priority than other offers. Agents generally don’t like creative offers because they are more interested in conventional offers from solid buyers.
- Be suspicious of the agents. Be suspicious of any agent who tells you what a great price you’re getting on a property. Fact is, if it’s such a great deal, why didn’t you buy it? Don’t take their word for value. Request a comparable sales printout to show what other properties in the area are selling for. If the comparable sales information shows the same square footage as the home you’re looking at, take a walk and see if it’s correct. Don’t leave the task to your agent; be sure to do a bit of your own evaluation.
- Don’t be intimidated by the agents. Don’t be afraid to talk openly with your agent if something is being done that is not in your best interest. Unfortunately, there are some agents who are unethical and work just to make sure they get their commission. Sometimes they will refuse to present their offer to the landlord when it is their obligation and duty to do so. Many times an agent will lie to you and tell you to your face that your offer has been rejected, when in fact it was never submitted. If you think this may be the case, don’t be afraid to go over the agent’s head and see the owner of the agency. If you find that a broker is uncooperative or acting in their interest, then it is best to go to another agent. The new agent will approach the same owner on your behalf.
- View some properties with the agent. Arrange to meet with the agent and fully discuss what you are looking for. Do this before he takes you to see some properties. Ask them to search for a number of properties that suit your requirements and make sure you are clear on exactly what you want so you don’t waste time. The good agent will make an appointment for you to inspect the properties very quickly so that they can get an idea of what you are looking for. They will take you to all the properties and rearrange their schedules to follow your schedule. It’s a good idea to take someone you trust with you when looking for properties so you can get another opinion. Let the agent know that you’re serious about your search and if you find the right property, you’d definitely be interested in moving on. It’s a good idea to take your checkbook with you so the agent can see that you’re serious about finding the right property. Sometimes buying a property from a typical agent can be difficult. Many of them will tell you not to call them to verify the properties of the ads they place. These are the agents who would rather place an ad than call the right buyer, so you may want to use other agents.
Note: The above points do not apply to all agents. We’re talking about the disreputable minority out there. Most agents care about their jobs and work to represent their clients efficiently and professionally. Those are the ones to look for.
Copyright 2005 StartRunGrow
http://www.startrungrow.com