How do you deal with a property rep'd by an agent?

Yes, I know. Deal with FSBO's. But, when it seems that the FSBO deals are running thin and most people are signing with agents, it seems that you HAVE to make offers on homes rep'd by an agent.

So, how do you manage that dynamic? If you're going to wholesale the property to another investor, that puts you in a position where you might get called out by the agent. If you get called out, the consequences aren't pretty.

On top of that, the agent is self serving, meaning they will counsel the owner to wait for the highest bid, which undermines what you are trying to accomplish. So describing the economic benefits doesn't seem to play well here.

Whatever advice people have would be greatly appreciated. Thank you.

Erik S. Carrion

Edited: 06/26/2010 at 06:17AM

Mary Ann Ead

Commercial Real Estate Agent · Douglas, Arizona

18 posts

Icon_minipost Nov 03 '08, 08:59 PM

My advice would be to develop a relationship with an agent. I have relationships with investors. Generally I know what sort of property someone would want and whether I am working a deal with them at the moment or not, in my heart, they are my client. I want my investor to make money. Dual agency can sometimes make this difficult, however, through negotiating everyone wins. The seller will not take less than what they will take, the buyer will not pay more than they will. An agent with negotiating skills, ethics and long term vision is your best bet.

Edited: 06/26/2010 at 06:17AM

Andrew Massaro

Wholesaler · Tampa, Florida

246 posts
422 Influence

Icon_minipost Nov 07 '08, 04:15 AM

If you're making offers on properties that are listed with a realtor, you're in direct competition with that realtor. They will not appreciate your involvement with the matter, and will fight you every step of the way. I would explain this to the seller, and ask that they keep your conversations private. If you flip the property, it is up to the seller if they want to pay the realtor out of their end. You are under no obligation, though.

Edited: 06/26/2010 at 06:19AM

Mark Brian

Real Estate Agent · Anderson, South Carolina

313 posts
2065 Influence
6 Awards

Icon_minipost Nov 07 '08, 07:08 PM

I would disagree that an agent is self serving by trying to get the most money for the person the agent works for. A listing agents jobs is not to get the best deal for the buyer. I would not tell the seller to take or decline an offer, I would only tell them what they will net from the amount and remind them of market conditions, etc.

Is this offer enough? No, I find out what they need and suggest a counter. If the offer amount and what the seller will net is OK, I work to get it to close. But do not think because I am looking out for the interests of my client, I am self serving-I am only doing my job. If i was working as a buyers agent for you, I would make sure I represented you in the best way possible.

Andrew is correct you are in competition with the REALTOR since they work for the seller and their job is to get the most money in the shortest time and with the least amount of hassle to the seller. I would not say they will fight you, they will want the transaction to close, but not at the expense of the client they work for, which is not you.

Any conversations about the property are by the contract between the listing agent and seller supposed to go thru the agent. You are asking the seller to violate a contract to enter into a contract with you. If the seller will violate the contract with the agent, what makes you think the seller won't also do the same to you? Kharma is a b*&^%

Andrew is also correct if the seller is responsible for paying the agent, of course the agent will have to sue the seller. Or if they have enough time, the agent can put a lien on the property so they must be paid before it can close.

Understanding agency, and who the agent works for is the biggest misconception of most people.

Edited: 06/26/2010 at 06:20AM

Kim Rock

Residential Real Estate Agent · Yardley, Pennsylvania

72 posts
259 Influence
1 Award

Icon_minipost Nov 21 '08, 03:28 AM

I work with wholesalers as an agent and you're not really in competition w each other.. As long as the seller agrees to the sale price - you enter into contract w/ the seller, assign it to someone else, put your fee on the HUD 1, and the seller and end buyer go to closing. It's really not that complicated.

Edited: 06/26/2010 at 06:26AM

Tommy R

Real Estate Agent · Riverside, California

55 posts
192 Influence

Icon_minipost Jul 13 '09, 02:16 AM

Thank you Kim,

Simple...yet satisfying.

Edited: 06/26/2010 at 08:57AM

Leesa Cramer

Real Estate Investor · Levittown, Pennsylvania

36 posts
46 Influence
1 Award

Icon_minipost Jul 13 '09, 03:24 AM

Tommy,
That is why Kim is my buyers agent. She knows what she is talking about and can get the job done. I am working on a deal right now that she is doing for me. She is in contact with the sellers agent and we are doing it all through email. Just waiting to hear back to see if they accept my counter.

Edited: 06/26/2010 at 08:57AM