Is it reasonable to have multiple agents find deals at the same time?

Question

Is it reasonable to have multiple agents find deals at the same time? My thoughts are that a few realtors looking at the same time would have a better chance finding good deals. It seems fair to me that the first agent to show me the deal should be the one that gets the commissions. But I wasn't sure if there is often a contract for the buyer to exclusively use one particular agent.

James Wise · Answer

Didn't say you should feel guilty. Just said there's going to be people who won't want to work with you.

You have to earn the agents trust that you won't be wasting their time. Some will work with you some will see you as a someone who will waste their time.

Not saying your wrong or right.

not saying they are wrong or right.

Just how it is.

Darrell Shepherd · Answer

I'll chime in again...I have one agent that I work closely with.  I have her MLS login and anything I find through there (or just about anything else) she gets commission on the buy and the sell.  She also helps me with picking paint colors (which I hate with a passion) and runs comps if I ask and is even a private lender on deals from time to time.  She knows her stuff and is a huge asset to my company.

I also network a lot and I'm known for doing what I say in my networking groups and my spiel to agents is that if they bring me a deal then they will get paid on the buy and the sell and I follow through on that promise.  That's a good payday, especially considering how much of their work I do.  And believe me, they waste more of my time than I do theirs.  Surprisingly few agents understand the numbers, even after you try to school them.  The one's that get it usually have people they send stuff to, so the ones shaking the tree are the newer, hungrier guys for the most part.  I view those agents the same as I do wholesalers, though, the more that know you will buy a real deal if they bring you one, the better.

I usually dont go look at a house until its under contract if there are pictures online so its not like I'm jumping in someone's car and having them drive me around all day.  I do most of it by email on that stuff.  I look at a lot of houses that aren't deals.  I tell them my buy number on just about everything I get, though, just to kind of train them up.

If an agent told me they wouldn't work with me unless they got all of my business I'd laugh at them.  My contracts with agents are house specific.  Also, just to say how I do things, when I'm selling something the deal is that if I sell it before they do, they get $500, if they sell it before I do, they get 6% (and I do run ads and pass out flyers).  That may not work for every agent, of course, but I've never had any of them say no to those terms.

I'm actually considering hiring someone and paying to get their license so I can train them to mine the MLS and fire off a bunch of offers.   My main agent has other clients (and two babies) so doesn't have the time for that kinda thing.  If I did that, though, it'd be to compliment my main agent, not to replace her.

Anyway, the moral of the story is that a lot of what is posted above is true.  Building a strong relationship with a good agent is a very good thing for your business, but talking to several, especially when buying is a good thing.  Plus, no matter how good your agent (or anybody you are working with) is, they tend to get complacent if they dont have at least a little competition.

Joel Owens · Answer

I really do not get this much on the commercial side. The investors are more sophisticated and want the relationship one on one.

There is a lot more involvement than just finding the deal in commercial with a ton of analysis and other things that go into it. I do have REIT's, Pension Funds etc. that have all cash and are chasing the deals. They are respectful and will pay very well when bringing a property to them and not cut you out. I know upfront that's just how these big institutions operate and they tell you so. I will bring opportunities first to my core clients.

I would rather have 30 clients with a one on one then 100 where some of them you just do not know what they will do next and are all over the place.

Josiah have you not rehabbed properties yet or are you saying you just haven't tried the multiple agents approach yet??

"By the way, I am only theorizing right now. I haven't done any of this but IF I did, I would definately not try to hide the fact that I'm using multiple agents."

If you try this approach you need to say to each agent " I have an agent that feeds my MLS stuff and any agent can do that. WHY I am calling you is to see if you have nay unlisted properties or off market stuff I can take a look at? "

Saying this lets them know you already have someone searching MLS and you want off market. Personally though I do not do residential I would ask you for proof of funds with a bank statement current within the last 30 days in your name and also I would want to know what kind of property you want to buy. Rehab and flip, buy and hold, etc.

I understand both sides  of this conversation. At the end of the day we all have businesses to run. There is certain business I do not even give second thoughts to or want as it doesn't fit who I want to work with. The beauty of real estate is that there usually is a fit for all types out there to conduct business.

Sharon Tzib · Answer

I believe most states have Exclusive Buyer Agent agreements, although my experience was few realtors compel their clients to use them. The ones that do are usually very busy agents who only want to work with serious clients and don't want to spin their wheels locating and vetting property for someone who may be using another agent.

As a former realtor, I think it's fine if you want to use multiple agents, but just be upfront with those agents so they can decide if that works for them or not. Nothing worse as an agent thinking you have a client only working with you, just to find out they did a deal with someone else and you've spent all that time for nothing.

Realtors are no different than any other profession - our time is valuable, and we expect to get compensated for our time. If we find you a deal that meets your criteria and you can't do the deal because you signed a purchase agreement with another realtor and now don't have the funds, that is not cool in my book.

I think in the long run, you will find an agent who you work well with, develop a great relationship with, and will no longer feel paranoid that you're missing any deals out there, because you will have confidence in the services of this person.

Account Closed · Answer

Thank you for proving my point that building a BUSINESS relationship based on trust with a client like you is impossible.

You view things as "what can this guy do for me" while I view a business relationship as "what can we do to build each other's business".

Bryan H. · Answer

If you are buying all the 'deals' that each agent brings you, then why would they care how many agents are working for you? If they are running all over town, finding deals and you turn them down because you don't have the funds/time/resources etc to close it, then shame on you.

Ugochukwu Opara · Answer

@Josiah Halverson Hey Buddy,

At the end of the day, there really isn't a right or a wrong ... there's just what works best for you, what everyone thinks, and what you think. Short and simple.

Get in and play around to see what works best for you + your business, in your market, and with the agents that you have available to you. That's the ultimate beauty of life ...options and freedom of choice.

What ever you do sir, I'm not mad at ya! I'm just happy you're out there doing deals is all. come back to BP and keeps us updated. Cheers.

Darrell Shepherd · Answer

I have several bringing me deals at any given time.  I'm rehabbing, though.   Mine know they get a commission when I buy and when I sell so they have a lot of incentive to bring me stuff.  Rarely do they understand the numbers, even when I school them over and over again so I get a lot of junk from some of them.  Most agents just do not have an investor mentality.

For rentals, they are mostly gonna be looking at the same stuff in the MLS, but there is no reason you cant have several looking for you if you are trying to purchase that I can think of.  Some get sold without getting listed, too.

You wouldn't want to spend all day having several drive you around if you just wanted to buy one house, but if you are looking for multiple houses, having several look up deals on MLS and send them to you is a good move IMO.

James Wise · Answer

It's a good way to get agents to not want to work with you.

Josiah Halverson · Answer

Thank you all for your input. I feel that I now have a better understanding of how to go about doing rehabs and using agents in a respectful manner.

Is it reasonable to have multiple agents find deals at the same time?

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