Do you use the same listing agent for all your flips?

Question

Hello,

Do you typically have just 1 realtor that lists all of your properties for buy and flip?  If a realtor brings me a home that the numbers work I would obviously use them to purchase the home, but how would you handle the listing part of a deal like that?  Would you list with the realtor who brought you the deal or use the same agent for all listings?  Hope that makes sense.  Thank you!

Tim Johnson · Answer

Hi @Parker Shoaf,

If I find a good deal for an investor....I usually have the expectation that the investor will then at a later date use me to list it - whether on or off-market. I don't assume that.....but I usually have that conversation with them. Obviously we will negotiate a listing fee that would be a win-win....

I also take as a given that that same investor owes me no specific loyalty or obligation to always use me....and in fact, will probably use other agents to list properties that came their way via those other agents.

Investors generally love working with agents that can find them deals - we agents love working with investors who are on the move and actively buying - and that often will lead to relationships that are pretty constant - although not exclusive in any way.

David M. · Answer

@Parker Shoaf

okay.  If for some reason you are super nervous, perhaps entertain with your "favourite" agent that (s)/he would give that other agent a referral fee..  Figure that arrangement out (hmm.... with your favourite agent) and you can be state that upfront when other agents bring you deals.  If its known up front that's how you work (you basically can say honestly that you have an agreement with your favourite agent and thus you are locked up), its honest and the expectations are clear.  I have no idea how these other agents will take it, but it could go either way in my opinion.  Good luck.

Parker Shoaf · Answer

I guess starting out I need to find just a few solid realtors I trust to bring me investor deals and then just have an understanding that they will be on both sides of it when they bring me one.   If I every buy anything in WA I'll be sure to look you up.

Tim Johnson · Answer

Sure, I get it Parker, that makes sense. Lots of factors to consider.

I was thinking more of the case where an agent is actively looking out for deals for a specific investor. He finds one.... the investor buys it....it turns out to be a great deal.... and the investor rewards the agent by using him on the listing side later as well.... thus, insuring that the whole process can repeat.

But this assumes you trust each other, have a relationship, and want to keep the cycle going. Sometimes you just need to find a different agent.

Parker Shoaf · Answer

I totally understand that.  It is about building relationships.  I want to be as fair as possible to everyone.  Realtor 1 brings me a house that the numbers work and I use them to purchase and they get paid being me the buyers agent, but do they automatically get the listing side as well or just go with the realtor I know has a great track record of selling too.  I might be over thinking it, just trying to be fair and what would more or less be the norm for that type of situation.

Steven Foster Wilson · Answer

I think it is always nice and is apart of building that core 4 to stick with the same person. I have found deals and the seller did not use the same agent because I could find a buyer who wants it and put my commission in the price so it made more sense for them to do that. Thus, with all things it can sometimes depend.

Tim Johnson · Answer

Investors who are constantly on the look-out for good deals know that promising to then list it with the same agent after the flip.... or several years down the road.... is good incentive for that agent to keep finding them deals. (after all, there are plenty of other investors interested in great deals.....)

But this isn't just for investors. As an agent, my goal is to create great relationships and offer "above and beyond" service with EVERY client I work with. My hope (and goal) is that every client who buys a home through me will (of course) want to list it with me when they sell. Believe me, Parker, NOTHING is hit or miss.....

Parker Shoaf · Answer

Thank your  for your feedback. This was more of a hypothetical situation more than anything.  Just makes me nervous thinking about dealing with realtors I don’t have a close relationship with.

David M. · Answer

@Parker Shoaf

Lets face it, if you don't list with the agent that brought you the deal, why would that agent want to bring you another deal?  Sure, nothing says that the agent automatically gets the listing.  But, its how you run your business, get leads/deals, and who you want to work with.  Open, honest communication is always better.  But, if you can't stand the agent, you can't stand the agent...  Good luck.

Do you use the same listing agent for all your flips?

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