When Should I Contact an Agent?

Question

I am preparing to buy a multifamily home to owner occupy in the Salt Lake City area. Eighteen months ago, I had a sub-par credit score & very little savings. I realized that I wanted more for myself, so I worked hard to save aggressively and paid off all my debt last year. My credit score has been rising steadily, and I have about enough saved to get into a home using VA financing.

I want to wait a few months and get my score higher, and continue to save beyond what I'll need to get into the property. I also think I should read more RE and investing books.

My question is: When should I call an agent and start looking at properties in earnest? I am already doing preliminary work of driving around checking out neighborhoods, searching online listings, etc.  I'm still a few months out from when I will feel comfortable buying. Will an agent in a busy market like Salt Lake think I'm wasting their time if I contact them now?

Thanks in advance to everyone who offers their advice on this.

Travis Gibson · Answer

Maybe the best way to find out is to talk to some agents. I think a good agent would be willing to spend some time getting to know you and what you are looking for. If you are up front from the start about your situation and let the agent know you might be a few months from being ready to purchase at least you can start building a report with the agent and find somebody you will enjoy working with. And who knows? They mind come across the perfect deal for you in the meantime and maybe you will find something that works earlier than you thought possible.

Ryan Catchings · Answer

SO EXCITING!!

You shouldn't waste your time contacting a real estate agent before you are pre-qualified for a mortgage. Agents are sales professionals looking to close deals. They won't work for you until you prove that you are ready NOW. A pre-qualification letter from a mortgager delivers this message. And when you are ready w/ that letter, send it out to 15-20 agents. It helps! The more deals you are able to evaluate the better. And make certain to evaluate them from HOME. If they look good on paper, then spend your time physically viewing the property and area.

I'd also advise contacting a mortgage broker re: your home loan. I'm certain your VA loan is the best option, however, you never can be certain. A mortgage broker's job is to secure you the best loan and inform you of your options.

The key here: time is valuable. Utilized yours wisely because agents are typically experts and utilizing theirs.

My mentor and I provide advise on matters like this on our YouTube Channel. Good luck!

Ryan Catchings · Answer

LOL! I'd agree. Stick w/ the VA loan. And no problem!

Yele Omo · Answer

@Ryan Catchings that's the solid advice I was looking for, I appreciate it. It's going to be hard to beat almost nothing down and no PMI that the VA offers, especially because my credit is just average right now, but I will look around.

Yele Omo · Answer

@Curtis Fergus I'm also an electrician, although I work in automation on the industrial side now.

Yele Omo · Answer

Thanks guys.

As far as multi-families go, I'm not surprised to hear that. A co-worker sold his duplex in the last 2 weeks with multiple offers & above asking price.  In my neighborhood near Liberty Park, I see the "For Sale" signs come up, and get pulled down within days. Things are moving fast.

@Curtis Fergus, in your experience, is finding good cash flow also difficult in low-income, or "undesirable" areas? I will be happy to let you know when I'm ready to meet with an agent.

Curtis Fergus · Answer

I'd suggest getting together sooner than later. It usually takes awhile 30-90 days to close on a property anyways.  If you sit down with someone and express your needs and wants we can get to work finding things that might fit what you are looking for.  In single family it is really difficult at the moment due to everything flying off the market as fast as it comes on. (For buyers anyway)  In multi family you have a better shot.  I'd love to sit down with you if you like. You might find that it isn't necessarily easy to find a good cash flowing deal in the multi-family sector in our market as well.  Might take some time digging... Let me know if you decide to meet with an agent. I'd like to throw my name in that hat...

When Should I Contact an Agent?

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