What defines a good RE agent?

Question

Ok, I've been working with 2 different real estate agents over the past 2-3 years.  1 was referred to me, the other is a friend of a friend.

Problem is, when trying to buy, the best that any RE agent has done for me is send me an automated listing of what is in the MLS.  Once I scrub what I'm looking for, then they seem to help out by pulling comps, market analysis, etc.  The time consuming part is scrubbing the MLS.

Are my expectations out of line for what an RE agent should do?  I've literrally told the last one, "I have $xxx amount for use in purchase and rehab and am hungry to buy.  Just need help finding the house."  Then comes the list of what is available on MLS, and I won't hear from the agent unless I find a house that strikes my interest from said MLS list.

What does a good agent actually do in terms of helping investors find homes?

Thanks.

Loc R. · Answer

IMO, a good agent is one that is on the same page as you.  If you want to be a lowball, vulture type investor, then the agent should funnel desperate listings to you (90+ on the MLS, owner will carry, etc., major fixer).  Just like if you were a high-end buyer who wanted 2000+ sq ft, 4+ bedrooms with a view, you should expect the agent to bring you just that...

Don Konipol · Answer

When I first began working with my current buyer's agent, we went through a training process of about 4 months before he (1) understood what I was looking for (2) believed I was not interested in other type properties and (3) believed the type deals I insisted on were attainable.  Now he sends me listings infrequently, but they more nearly match what I am looking for.  The process of training takes time.

Bill Gulley · Answer

Honesty, competency and a good business reputation are qualities to look for IMO.

I don't think most investors should be looking for someone who takes orders, you don't want a "yes" man, you need someone who knows more than you do and who will assist, be a player, and keep you from making mistakes!

As to friends and family, IMO this is usually a mistake, someday something will go wrong and you put that relationship at risk. And it's human nature to slack off more when working with someone who has a close relationship as they spend more time with those they must "earn" business from, they can easily feel like you will always be working with them so it's okay to have you on the back burner today.

Keep it a business relationship, most will call you friend, just remember they have alot of friends!

Ziv Magen · Answer

Great thread, thanks. :)

We found that, while most agents will not have the required "telepathy" to know exactly how to cater to the investor's needs initially, even if they've worked with investors before - because every investor's needs differ - they still roughly fall into the categories of "those who will learn" and those who won't. It doesn't take too long (usually 3-4 emails/listings sent) to weed out the former from the latter, so I'm also a bit baffled on why you've been working the ropes with these guys for 2-3 years - are you sure there aren't ones easier to deal with in the areas you purchase in?

Joel Owens · Answer

It's just about setting expectations.

Say you buy 4  50k houses a year and the agent grosses 1,500 a pop.

The annual book of business is 6,000 commission.A newer agent doing the grunt work will be on at best a 70/30 split.

You are talking 4,200 gross before taxes,gas,car maintenance,etc.

Of the 4 properties if you flip them you make say 25k on each one.So in a year you make 100,000 and the agent makes less than 4,000 after expenses.

The agent will even if they find a property you like most likely you will be competing against many other buyers for that property.So if I list the property and ten offers come in and we accept one I get paid.

If ten buyer brokers submit an offer one gets paid and the other nine get to go have fun all over again looking for the one in a hundred or one in a thousand property that works.

I will say as a broker it is important to know if an investor is buying to hold or for a flip.Flips are harder to get to close than rentals as the margins have to be greater for the short term exit.

Also important is if the investor is paying cash or using HML.The buyer having liquid cash to perform is key.If the investor states they have cash but cannot provide the broker a bank statement valid within the last 30 days and the investor comes up will all kinds of excuses the broker needs to not work with that buyer.

For every wannabe broker/agent I can just as easily show you a wannabe investor.Both waste people's time and get in the way of properties being purchased.

For the low junker properties you need a broker that is not taking down  much larger deals or  anew agent hungry to do anything to get paid.You might just be better getting on the REO kings list for the area and buy direct through them.

The REO listing broker is getting squeezed by the bank or asset company anyways and gladly will take the extra fee.Even if they assign a buyers agent for their firm to represent you they are still getting a cut of that side of the commission.

Dale Osborn · Answer

There have been numerous threads on this topic - do a search to see some of the other replies.

If there were some good RE agents out there we would not keep seeing this topic pop up from frustrated investors. Following are some items you must have:

1. Agent listens to your wants and needs for a property. 
2. Agent puts your wants and needs ahead of their own need for the commission. 
3. Agent does not hand you a MLS list and expect you to do their legwork for them and then they arrive at the closing table looking for the commission. 
4. Agent preescreens the property before showing it. Example: I was looking for land with a pond or stream - it was very embarrassing for the agent to look at the dried up hole in the ground and try to explain the listing "said there was a pond there". 
5. Agent maintains an open line of communication with you and you do not need pliers to get info you need to make a decision. Many agents like to pretend they are so busy they can't return your phone calls. Guess what - any phone call not returned within 24 hours results in a lost customer/client according to NAR statistics.

If and when you find someone you can work with - you want them to work for you each and every time you do a deal.

Good Luck in your search for such an animal on this planet.

Karen Margrave · Answer

The question is, are you trying to find properties that aren't out there, and you're wanting a deal that can't be made, then figuring there's a problem with the agent, because they don't want to spend their time spinning their wheels, and they're being polite by not telling to to get lost?

It's not always the agents fault things aren't going how you think they should

On the other hand, there are lazy agents. There are agents that won't work certain areas because they don't relate well to people of different cultures, or whatever. If you have specific areas that you want, languages that you need, be honest with the agent, and ask them if they know the area, and aggressively work it. Ask if they know the languages in the neighborhood, etc. They can't be discrimatory, and are sometimes worried about answering certain questions, but they can tell you if the area is one they have experience in. And most larger offices have agents that know the local cultures and languages.

To find a good agent, find one that you are comfortable with, then make sure you give them all the details of what you are looking for so they don't waste time. Tell them what you expect of an agent, and ask if they are willing to do it. If not, find one that is.

J Scott · Answer

If the agents are so bad, why have you been working with them for "2-3 years"???

Don't mean for this to sound obnoxious, but it sounds like you're being just as lazy as they are (by not demanding more or moving on)...what incentive do they have to change if you're sending the message that you'll keep working with them?

Jerry Rode · Answer

Thanks all for the suggestions. I likely need to keep "training" the agent I have now. We've bought 4 houses together but I might need to get a little more direct at how I think he can help out.

Joe Bertolino · Answer

I have switched gears and am looking at SFR's in the inner city and the agents I used to work with are not very excited about helping me acquire $40-60k houses in transitional neighborhoods.  I have opted to go with some greener agents that work the area hard and can speak the language (Spanish, Russian or Hmong).   When the commission is coming to $1500,  I don't have high expectations.  MLS list, comps and either picking up the call or responding promptly is all I require.  I will buy 1-2 houses a year and I know that isn't enough to put me at the top of a great realtors list.

What defines a good RE agent?

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