​3 Misconceptions Investors have about Real Estate Agents.

3 Misconceptions Investors have about Real Estate Agents.

1. Real Estate Agents do not know how to find “off-market” deals.

Real Estate Agents are the BEST at finding “off-market” deals. How do you think that the deals make it “on” the market? Real Estate Agents are the ones that put them there! Now that you know that Real Estate Agents do in fact know how to find “off-market” deals don’t be that investor that contacts every agent they can asking the agent to send them “off-market” deals.

We are Real Estate Agents; if we have a property that a seller wants to sell you better believe we are going to put it on the market and advertise it to as many people as we can. That is how you sell a property and the only way an agent is getting paid is when they sell a property. For whatever reason many investors seem to think that agents have these secret deals that we have just been sitting on in the hopes that one day you will cold call us and explain that you are willing to pay 60% of its market value. 

"Hurray our prayers have been answered! A buyer who is willing to pay 60% of market value for all of my off market properties" Said no real estate agent.....Ever.

2. Real Estate Agents do not understand wholesaling.

The idea that real estate agents do not understand wholesaling could not be further from the truth. Real estate agents do understand wholesaling. What people who want to engage in wholesaling do not understand is the logistics of a real estate transaction, licensing law, illegal brokerage activity and how an agent is best suited to use their time in order to achieve the highest amount of success.

Related: 5 things every new real estate agent needs to do to become successful

3. Your Real Estate Agent will always be able to get you your Earnest Money back.

Some investors believe that they after they have entered into a deal where they had to put up an earnest money deposit that they will have no problem getting back their earnest money deposit if they develop a case of buyer’s remorse. This is untrue.

Real estate contracts are typically written in a way that a buyer needs a very good reason to back out of the deal. The period in which they can come up with that reason is also pretty short. Typically 7 days or less. Some investors assume there is a 30 day “due diligence” period where they can back out no matter what. This is simply not true. Even if an investor follows the contract to the letter of the law and backs out of the deal for a valid and legitimate reason that does not automatically mean they will get back the earnest money deposit back without a fight. If a buyer finds themselves in this situation there is nothing they can do or say to get their real estate broker or title company to release the earnest money deposit unless the broker or title company has a signed from the buyer and the seller agreeing who the money should go to or a court order from a judge. So the moral to the story in regards to earnest money deposits is that you don't put a property under contract unless you are ready, willing and able to buy it. The time to kick the tires on a potential deal is before making an offer, never after.