Questions for buyers agent

3 Replies

@David Lyons make sure your agent  clearly understands your investment strategy. If they have a good grasp of what you’re trying to achieve and a sound market knowledge, they should be able to find the right property. I had a client who wanted a duplex in town but there weren’t any to fit his budget and timeline. When I learned his intent was to rent out the other side to his brother in college and other college students, we found a 5 bedroom house that had a full finished basement. College kids only need a bedroom and bathroom and I believe he was able to command a higher cash flow by renting out each room instead of an entire apartment. 

Hi David, I would also say make sure that they understand investment properties and know what a capitalization rate is. That sounds pretty obvious for someone who's going to work with an investor but is by no means a sure thing. They should understand that pricing for investment properties is based more on what cap rates comparable properties sold at than what sales prices they sold for. The other things I would ask any agent are things like what measures they take to make sure your interests are protected during a transaction, i.e. helping you keep track of timing on contingencies/deadlines so you don't miss a deadline that's in the contract. If you ask them to give you an overview of what's in a typical purchase and sale agreement they should be able to give you a clear, simple explanation of what's typically included and why - this will at least weed out people who don't have a good knowledge of the contract forms. Good luck!

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I would definitely ask what their investment strategy is and see if it matches yours.  

I mainly deal in small multi-families, so that's who I tend to work with.  I am getting myself into STRs soon, so I foresee working with those investors soon, as well.

@Irene Nash is right -- they have to be able to analyze a property and know the market, as well as know the contract and have systems in place for the contract-to-close phase of the transaction.