I'm new to real estate investing and am seeking some guidance as to the roles and responsibilities of real estate agents. My boyfriend and I are in the process of researching different locations within NH to invest. We are currently working with an agent in NH and have provided him with the following criteria to determine what cities/towns would be the best to invest. (Prior to finding out about BiggerPockets)
1. Increase in population
2. Workable R.V. ratio
3. Affordable <500k
4. Higher density of renters vs owner occupied.
5. Historical pricing, net positive appreciation. (Location based appreciation insight)
6. Affordable cost of construction
by sending our agent this criteria, we are wondering if this is information that an agent could/should provide, or is this something we would exclusively need to research ourselves? We want to ensure we are not asking too much of our agent and that we understand the role an agent plays during the investment property search.
Thank you ahead of time for any feedback you're willing to share!
I've never heard of a real estate agent helping someone find a location to invest because agents tend to be tied to a particular region. Using Ohio as an example, I wouldn't expect an agent in Cleveland to know anything about the market in Cincinnati. And (s)he probably isn't going to tell me to invest in Cincinnati because then you're going to need an agent in Cincinnati, not an agent in Cleveland.
Now, once you decide on a city, you can ask said agent these types of questions about specific neighborhoods.
I rely on my agent to confirm or deny my own findings as you still have to do your own due diligence. Does that make sense?
"we are wondering if this is information that an agent could/should provide, or is this something we would exclusively need to research ourselves?"
Am a broker, so am biased. Your main issue is going to be if your broker tells you something will you use it in reliance when buying a property.
What happens if they're wrong or things turn out bad? You'll get 1-2% of buyers that'll raise holy hell with the REA about that agent, that's why they'll get you 3rd party references instead of from the broker.
At the end of the day, it's your buy and you make the decision, not your broker. So understand EVERYTHING you can about your purchase.
I am an agent in Cincinnati and I specialize in working with investors. I see my role as a partner and someone to find data and bounce ideas off of. I can give an estimated ARV, locations to look into, help with the home search, and anything else the investor might need help with.
With that said it is still the investors responsibility to do all of their own homework. I do my best because the better my clients do the more likely they are to use me again.
Hope this helps!
Hi Nicole, if you are investing in residential 1-4 units, then most residential agents won't have any idea what you're asking of them. There just aren't a lot of analytic tools that residential agents have access to use. That said, you should be able to get enough information to make an informed decision.
If you have a commercial agent, 5 units+, or and agent who can work in both areas, then I would expect them to be able to answer these questions for you and it shouldn't be unreasonable.
I hope that helps!