Becoming an Investor Friendly Agent
Hi:
I would like to focus my business on Investor Transactions, are there any suggestions?
Thank you.
Most Popular Reply
A couple things that come to mind to start this discussion off:
- In my experience, investors want agents who understand the basic principles of investing (valuation, exit strategies, analysis, etc).
- Investors don't want to be treated like typical buyers/sellers who need their hands held...they want someone who will be their partner, be brutally honest, not sugarcoat the information, etc. In other words, at all times maintain the investor's trust, even if it means delivering bad news.
- Be prepared to play the role that the investor wants you to play. Some investors will want you to take the lead on transactions, while others will just want you to write up offer, submit counters, etc. Don't assume what the investor wants...actually discuss it.
- Be prepared to provide incentives for long-term relationships. If you're normal commission on a sale is 3%, be prepared to offer a long-term investor client somewhere closer to 2.0 - 2.5% for their repeat business.
- Make sure you provide GOOD comps, and it's always better to provide more information than not-enough information. Many investors want you to provide the raw data, but want to do the analysis themselves; be okay with that, but also know when to throw in your two cents and bring them back to reality.
- If you can provide any design/staging consultation, that's a bonus. Many investors are guys, and don't know how to pick a paint color, let alone how to furnish a house for sale. If you can help, you're a huge value-add.