Use Realtors – With Some Cautions

Successful real estate investors don’t work in a bubble. Some have whole teams of professionals involved in their businesses. Real estate agents are on these teams, as we use them to help us to locate deals and to present our offers on listed properties. Working with real estate professionals is part of our job, but we shouldn’t count on them understanding our unique property and financial requirements.
We don’t always have a choice of Realtors, as sometimes we’re making offers through listing agents or an agent we don’t know brings a deal to our attention. When we do have a choice, there are some things we need to keep in mind that all real estate agents aren’t created equal, and they’re working under strict rules and restrictions.
The training they receive is mostly about passing a licensing exam. They learn the ropes working deals and sometimes working with more experienced peers. However, even an experienced agent is usually not going to have an understanding of our requirements and how we value and select properties. We’re using the Realtor’s services, but we need to take the lead when it comes to most of the decisions.
• Areas or Neighborhoods – Real estate professionals are experienced at advising buyers about neighborhood characteristics of value to the retail buyer. Our neighborhood evaluations take other factors into consideration, such as demographics, traffic patterns, employment, and future growth trends. We’re also interested in the differences and similarities of homes and which are the most suitable for rental or flip opportunities.
• Prices and Offers – There are cases where you may hear that an agent doesn’t want to present your offer, as they consider it too low and a waste of the other agent’s time. This is someone you don’t want to work with if you can avoid it. They are required to present every offer, but you don’t want them going in playing for the other team.
• Investment & the Math – Successful investors do a lot of valuation calculations, rental studies, and market research. The average real estate agent is not as market-savvy, nor do they think like an investor. Even if they’re trolling investment club meetings, don’t assume that they understand what we do. When you find one who is knowledgeable, hold onto them.
Effective use of real estate professionals will grow our business. We just need to be selective.