how not to piss off an agent when getting familiar with area

Question

I have heard many times in books and podcasts that before getting ready to start making offers, one should familiarize with the area, property values, by "looking at 100 properties, making offers on 10 and maybe getting 1 offer accepted".

In his "Book on Flipping Houses", J Scott also recommends this, in order to become familiar with properties that are being flipped, what they look like before and after, in order to know what a good deal looks like.

Going back to my question, if I found an agent in an area that I was interested in investing and wanted to do this, knowing fully I wasn't at the stage where I was ready to pull the trigger, how would one go about doing this with an agent's help and not piss them off?

Looking at that many properties takes time for the agent in order to locate the properties, meet me at each one in order to let me in and spend time at each one in order to discuss it... Wouldn't an agent be tired of the "tire kicking"? I know I would be was I in their shoes...

What would you recommend as a way to get this done and not piss an agent off?

I was thinking that maybe contacting more than one agent in order to divide the time spend with more than one agent in different properties... Would this be ok?

I also thought that doing this would be beneficial in a sense that it would allow me to talk to multiple agents and see and compare each one with one another and see what agent I liked working best with and felt most comfortable with.. Seems like a way to "kill to birds with one stone".

What do you guys think?

Michael Delpier · Answer

@Patrick Boutin Here is what I did.

When I first started investing in the SF Bay Area, being born there, I knew the whole Bay Area like the back of my hand, so narrowing down took about 1 day. I narrowed down to San Mateo and then down to about 9 sq blocks. Watched everything on the MLS and went to every open house in my selected area. This let me know who the agents were and how well they knew the area. Then I just approached the best agent and put in an offer on a place he was listing. Relationship grew, and he let me know of everything that fell within my criteria. Most importantly, I closed on everything I said I would. If you want to piss off an agent, pull out just before closing.

When I moved to Houston, it was very difficult for me to get a handle on the market here. The price drivers were so different it had me stumped for about a year. During this year I looked at the MLS (HAR.com) everyday. I went to open houses through the Houston area. I quickly learned that Houston is huge and I wanted to invest closer to my house. I also learned who I wanted as renters and who I did not want. This had everything to do with attracting long term renters who were not too much of a head ache. This led me to the price bracket they would accept, and this'll led me to the house price that would make this work.

From there I looked at every open house in this price and area. And looked at every listing for lease and for sale in the area. After a few months I had a good feel for the area and what would, and would not, work for attracting the type of renter I was after. This will also let you know the agents who are most active in your area.

Sure, I could get better returns, but I would have either a high maintained tenant or a lot of turnover. Both cost a lot.

So, I have never contacted an agent unless I was serous about pulling the trigger soon.

If it is too far for you to drive to see the open house, it is too far to be a local investment. Then just invest out of state or use a turn key investment.

Jeff Brower · Answer

@Patrick Boutin for seeing when open houses are to occur, Zillow is a good base. I have an automatic search setup to send me open houses that are happening every week. It comes right to my email. Or you could phone local brokerages and ask what they have on their schedule.

Patrick Boutin · Answer

@Valerie Hiscoe, I am planning on going to a REIA meeting near the areas I have in mind and will be looking out for those RE agents as you say. I am also working on my finances so I know that the time will be in the spring of next year when I will be most comfortable starting to apply for pre-approvals. In the meanwhile drove throughs and open houses it will be.

What are "display suites"?

@Jeff Brower, that's a good point about the agent who doesn't get to do the sale. Thanks!

@Mike Cumbie, how would you recommend I located of find out what open houses will be taking place? The areas I am considering are about 1.5 to 2 hours away from where I live due to the high living costs here in the Bay Area and it would be nice to be able to plan these a little ahead of time (if that's even possible) just before the weekend.

Mike Cumbie · Answer

Hi @Patrick Boutin,

You can plan on spending your Saturday afternoons and Sunday morning/afternoons hitting up Open Houses. That way you will get to see plenty of houses and also meet plenty of agents. You will get to do an informal interview process and they will be able to point you at other properties they know about or will be "coming soon"

Good Luck!

Valerie Hiscoe · Answer

Almost forgot - although agents might not have time to show you the insides of lots of properties, they will HAPPILY put you on their email list for automatic updates on what's coming up for sale that meets your parameters in the area. Decide on your target type and find that investor friendly realtor (ideally someone who invests themselves). If you know price range, beds and baths, square footage etc, they can automate it. Zillow, Trulia, too.

Valerie Hiscoe · Answer

Display homes and suites are where one unit of new construction is staged and decorated (usually) to show off the development. It's a great place to get ideas about coveted looks and materials in the area. If there's new construction in your preferred 'farm area', look for them.

Your job is to find out what sells for how much in how long. Keep your thumb on the pulse of everything for sale in the area, and everything sold, even if you don't get to actually go inside.

Jeff Brower · Answer

I would not 'divy' up the load between two agent because when it comes time to make an actual sale, you will only be paying commission to one agent and the other will be left high and dry with nothing to show for his 'half' of the work. I would simply be up front with the agent and let them agree to be on board or not. I suggest finding a new hungry agent with extra time on their hands.

Valerie Hiscoe · Answer

See if there's a real estate club nearby that you can join and hook up with an investment realtor or two that way. You're right though in that they'd much rather you be prequalified to buy before they start setting up appointments for you. Try to get those finances pulled together asap. Until then, do your drive throughs, visit open houses, look at display suites, etc.

Hopefully an agent will weigh in with some solid advice.

how not to piss off an agent when getting familiar with area

how not to piss off an agent when getting familiar with area

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