Are agents deal killers?

Question

Hello,

I am a newbie and am wondering if working with real estate agents is bad or good?

Some say they are helpful, while some say they kill deals as all they know is commmissions... and are not creative usually.

Thoughts?

Thanks,

Newbie

J Scott · Answer

In my experience, most agent are incompetent (low barrier to entry in this business).  But a great agent can be your most valuable "team member"...

Rich Weese · Answer

I've been on both sides of this question. I was a licensed broker in the states of California and Colorado employing many real estate agents in the 1970s. Most of the agents that worked for me were extremely useless. They took up more of my time asking questions, than the value they produced in deals they did. I remember the fact that 10% of the people in real estate earned 90% of the money and the  90% of people in real estate scrape and scrounge for the other 10%. If you can find someone in that top 10%, they might be extremely useful for you to use.

Since all of the previous posts were by licensed real estate agents, let me now address it from the standpoint of someone that is not licensed. In any multiple listing service the real estate agents are going to have access first to any properties that become listed. In many instances you will be competing with agents for the same properties. Who is going to be the most likely to have an offer accepted on a home?  The agent that sees it first or you? If it is a truly good potential investment, hundreds of real estate agents will have first access to the knowledge and information about the listing through the MLS before you will get a glimpse!

This puts me, as a buyer at a distinct disadvantage. However, if I'm willing to do the work and find expired listings, or homes for sale by owner, or homes advertised for sale, I may become the first person to have access to purchasing this piece of property.

I can make a valid argument for either side of this discussion. I have had extremely good help from real estate agents over the past five years but the majority of them are not worth their salt and as others have pointed out above, they do tend to change colors when the chips are down. Rich

Brent Zande · Answer

Look for agents that are in the investing game.  There are a few out there that really understand it and can be a great help.  That being said, most are incredible deal killers, the good news there is that you can change agents and if it is the sellers agent usually they don't make it through 6 months and you can go back when they are gone.

Joel Owens · Answer

Just depends on what you are trying to do.

If you are trying some crazy strategy because you have no cash and 100 things have to line up right for the deal to close and for me to get paid than no I don't like those kinds of deals.

I like vanilla deals where you might have to get a little creative but the buyer has skin in the game (cash).I want to work with long term clients and not one off deals.

I also do not work with people who would think I am overpaid or that a broker doesn't bring any knowledge or value to the table.Those types of people are very close minded.

I believe you get ahead by networking and learning new ideas from others.

You have to understand  that brokers/agents get hit with many schemes by so called investors trying to make a quick buck.Many think about the quick buck now and the legalities after the fact.To protect our license we cannot act in that way or do transactions that way.

I don't know why people harp so much on agents.There are bad apples in every field.

I am an investor as well so I see both sides of the coin.

Matthew Paetz · Answer

I think Jamie is on the right track. The unfortunate thing is it's so easy for anyone to get a real estate license.  I agree you must find a realtor that not only understands what it is you're looking for, but is more interested in a long term relationship over the short term commission. I would strongly suggest a full time agent over the part timer. Agents in the know when it comes to the legalities as well as potential deals that fit your budget and goals, these are the ones you want to associate yourself with.

I hope this helps.

Ed L. · Answer

I'm a self hating Realtor.

Almost all have the capacity to be your best friend when things are going according to plan...

The moment a commission comes into question the fangs tend to come out.

Jamie Cox · Answer

Working with an agent is a good idea but not all agents are good for investors. You'll want to find someone that understands the investing side of the business and perhaps even invests themselves.