The real estate agent is a valuable source of potential deals for you as an investor. They have access to multiple listing resources, and of course they have a monopoly on this information, so they should 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 to consider include the following:
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When you want to buy a property, give 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 some things that make an agent more excited than the idea of receiving their commission in the next 14 days. If the agent has another offer presented to them, they will generally advise the client to accept the offer and close instead of accepting a higher priced offer. One of the reasons is that it is better to have “one bird in your hand than two in the bush.”
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See if you can present 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, then 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 less priority than other offers. Agents generally do not like creative offers because they are more interested in conventional offers from strong buyers.
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Be suspicious of the agents.
Be suspicious of any agent who tells you how much you are getting on a property. The fact is, if it’s a good deal, why didn’t you buy it. Don’t take their word for it. 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 house 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.
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Don’t be intimidated by the agents.
Don’t be afraid to talk openly with your agent if something is being done that doesn’t suit you. Unfortunately, there are some agents who are unethical and work alone to make sure they get their commission. Sometimes they will refuse to make their offer to the landlord when it is their duty 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 presented. If you think this may be the case, don’t be afraid to bypass the agents and see the agency owner. If you find that a broker is uncooperative or not acting in your best interest, it is best to turn to another agent. The new agent will approach the same owner on your behalf.
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View some properties with the agent.
Arrange to meet with the agent and thoroughly 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 needs and make sure you are clear about 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 drive you to all properties and rearrange their schedules to fit your schedule. It is a good idea to bring someone you trust when you are looking for properties so that you can get another opinion. Let the agent know that you are serious about your search and that if the right property is found, you would definitely be interested in continuing. It is a good idea to bring your check book so the agent can see that you are 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 check the properties of the ads they place. These are the agents who prefer to place an ad rather than call the right buyer, so it would be advisable to use other agents.
Note: The above points do not apply to all agents. We are talking about the disreputable minority that exists. 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