Updated over 5 years ago on . Most recent reply
Picking your real estate agent
As I'm looking to buy my first rental, I've accumulated a solid list of 4-5 agents/brokers that fit my criteria (on paper). I've scheduled some time to talk to all of them to get a better sense of how their skill set aligns with my interests. However, I'm curious as to how do you make the call after speaking to all candidates? This is especially challenging for me because I'm investing OOS. What if I pick an agent and it turns out to be not a good partnership, can I still go back to the ones I initially rejected? Just curious how to navigate this, since I'm new to this and it feels like it'd be a bit easier if I could meet with them face to face from the start.
Most Popular Reply
I've worked with three real estate agents. My first was an out-of-state agent. I lived in Spokane and was hunting for a primary in Omaha. The first agent pressured my wife and I to offer on higher-priced homes, so that toward the end we narrowed our criteria to only nonnegotiable items: The house had to have a good foundation, sell for under $100,000 and be in the school district we needed.
We purchased our starter home, much to the first agent's chagrin, and after the deal, we agreed not to work with her again.
For my second home, I worked with a referral agent. He was excellent to buy with, but my wife and I didn't connect with him personally. The second agent owns three rental properties, but his philosophy is a bit different than mine. He doesn't care about cash flow and wants houses for appreciation. That effects what he considers a good deal, but he still understands the mechanics of offering, and helped me a lot on what was a good entry point when we identified a home we wanted to purchase.
The third agent is newer to the business and talked a great game about being hungry for any deal, but he's already failed to reply to time-sensitive questions and requests. That's an immediate disqualification for me. I don't need 24-hour availability, but I do need action by the end of a business day on any requests.
You aren't forced to work with an agent beyond one deal. If you pick one not-well-suited to your needs, view it as a learning experience, and slow down enough that you can take on the role of methodical evaluator. As long as you can resist pressure to act and run your numbers carefully, you'll learn and grow as an investor.
It sounds like you've searched diligently, so based on your post, I'd encourage you to go with the agent you have the best personal connection with. That's the one thing, in my experience, that will take you the furthest. Trust.
Best of luck!