Investor · Cypress, TX · Member since 2013 · 403 posts · 59 votes
So I am just getting more into investing now. Several investors have suggested you contact several RE agents to get them looking for properties for you. Now I've heard from a few RE agents that if agents know if you are working with other agents they will not want to work with you. I would love to hear from agents/investors who can really explain to me if it's a waste of time for me to seek out 5-10 agents to help me find properties. Certainly this has been talked about before but I can't find anything on it when doing a search. Thanks in advance for your advice.
Investor · Omaha, NE · Member since 2011 · 475 posts · 211 votes
13y
I is absolutely OK. I work with 3-4 agents in my home market and 2 in another in which I buy. Don't let an agent intimidate you into working with just them, you are free to work with whomever you choose.
Investor · Ojochal, Costa Rica · Member since 2013 · 287 posts · 164 votes
13y
In a market that I am established in I have a relationship with 1 broker who works really hard for me and I put everything through him. Even if I do a deal that another broker has brought to me, I still make sure my broker gets some sort of compensation. It breeds a loyalty that can be indispensable, and very profitable.
I also recently went into a new market that I didn't have any good contacts in and wanted to talk to a couple different brokers to work out who I wanted to work with long term. One of the brokers, who was referred to me, wouldn't even talk to me without signing an exclusivity agreement. Despite my previous track record with my other broker, and my business partner's track record in his market, the broker was adamant about having the agreement in place. His loss.
I am not about to sign anything like that until I know that I want to work with this person long-term, and even then, I would hope that the relationship I establish would not necessitate such an agreement.
Involved In Real Estate · CA · Member since 2010 · 10 posts · 2 votes
13y
There is nothing wrong with working with more than one agent as long as you are up front with them and let them know that you plan to use them for the offer and ensuing transaction if they bring you that deal. You will have problems when you go behind the brokers back to do the transaction and the broker/agent will force you to perform(pay the commission ) that is rightfully due him/her. and you need or want that headache,and the talk to other agents in your area and you will begin to get reputation that dont want. I have worked with many investors and I make it very clear at the onset of the relationship where I am coming from and what is expected of both of us. And when I take a listing I like to throw a bone to my investor and give him 1st crack at it, but.... If he dicks me around he gets rotated to the bottom of list. And that's not where he likes to be he wants to be 1st so..... There ya go
Good luck have fun!!
Real Estate Broker · Bozeman, MT · Member since 2012 · 220 posts · 52 votes
13y
Just last evening I was reading through this thread after emailing my agent to clarify our relationship.
The challenge (and resulting clarification) came when she was showing us a multi-family property and my husband mentioned a different, similar property we'd seen with another agent a few weeks prior. This other agent had contacted me about the property after gaining our contact info from an inquiry I made on an REO that she had listed last year.
I explained through email later that evening to my preferred agent that we didn't have multiple agents running all over town for us, and I planned to use her for any transactions involving an agent. I felt it was necessary make sure she understood that I valued our professional relationship. I also think it's fine to use multiple agents if you are in a large metropolitan area or are looking for different types of properties (commercial vs. res, etc).
Residential Real Estate Agent · Costa Mesa, CA · Member since 2008 · 1k+ posts · 380 votes
13y
Frankly, agents are a terribly inefficient way of procuring properties. So, to limit yourself to only one agent in an already inefficient venue would likely have a negative impact on your acquisitions. That said, there are great agents out there for investors, and typically they have an investor background themselves, or several investor clients. The trick is to be going after properties that the agent themselves (or a buyer that the agent gives a higher priority to than you) is not interested in.
If you can find one agent that you can have a mutually beneficial relationship with, that's good. If you can find multiple agents like this, that's better.
In no circumstance are you negatively affected by having multiple agents looking for properties for you, so long as you keep the inventory overlap to a minimum and allow each agent to focus on their niche/specialty/geo area of focus.