Rental Property Investor · Member since 2020 · 32 posts · 35 votes
When I asked about the status of a deal my agent was trying to line up for me, he (to his credit) told me he and his partners just put it under contract and that he would keep looking for a deal for me.
I’m new to rental investing, but not new to buying houses/dealing with agents... and this seems off to me. Understanding that there is always competition, I believe the Agent should have notified me that he and his partners were interested in this deal from the outset.
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
5y
I'd get a different agent. I always tell my clients, I would never buy in front of them. Now if they don't like it, can't buy it, won't buy it, I might buy it, but I always give them the chance first. Buying in front of a client that has either alerted you to the property or one you sent them as a potential buy, is a great way to kill that relationship. I also ask them to tell me pretty quickly if I see a nice deal while we are there looking. I tell them straight up if they don't want it, I probably have another investor that does. If they want it, I don't shop it around to other investors, but if you don't and it's a deal, I want some other client to get it.
I guess it kind of depends on where you were in the process, if you have financing together. Not sure what lining up a deal means exactly. Had you seen the house? Had you made an offer? Do you have your financing in place? How many other homes have you seen with the agent? Have you bought other homes with the agent?
Rental Property Investor · Leavenworth, KS · Member since 2018 · 22 posts · 18 votes
5y
@James G. I would find another Agent. I would also let that agent know that obviously the best deals go to him and not his clients. Also if he works for a brokerage, let them know what happen. That's my opinion.
Real Estate Investor · New York, NY · Member since 2014 · 81 posts · 46 votes
5y
Really curious if you signed a buyer's agreement because he'd have a fiduciary obligation to you. if so, I would definitely report to the realtor association and write bad reviews on zillow, trulia, realtor.com, etc.
Or have that hanging over his head to bring you another opportunity, but you should be tactful about it. just be open about how you feel wronged and will call it even if he brings another promising opportunity.
Sounds like this guy is hustling to find deals, and if he had to convince the seller to sell the home he may be worth "using".
I'd get a different agent - or even try to buy without an agent - without giving it a second thought. That's really unprofessional of your agent. With so many real estate agents out there (albeit not equally good), you have no reason to work with someone who acts like this. Being able to trust your agent is a prerequisite for making successful deals.
Moreover, since you have already bought a few properties, why don't you try to buy the next one on your own, provided that your time allows for it of course?
Realtor · southern Idaho · Member since 2020 · 81 posts · 50 votes
5y
@James G. In what capacity are they your agent? If you have verbal or signed relationship that defined client customer and realtor rolls, I'd fire and report to state oversight. Highly inappropriate and unethical that realtor acts as your competitor in a transaction that you were obviously interested in and aware of. Never ceases to amaze me.
Realtor · Cleveland, OH · Member since 2015 · 2k+ posts · 857 votes
5y
From patching together everything that has been stated here.
The "agent" mentioned a possible property that might fit @James G. needs but the agent had not locked down the property or had shown him the property. Once the agent did lock down the property, the agent decided to buy it himself. Did the agent do anything wrong here apart from lead on James G and waste his time? NO. And IF you are going to report him for wasting your time then ever agent should report client's for doing the same. Agent didn't do anything unethical here. He did all the leg work, follow up and when an opportunity presented itself he took it. WE are all human and lets be honest IF you had the CASH on hand you would do the same given the outline circumstances above.
James maybe become your agent and you'll see just how much work it takes to get/find/secure a deal.
Real Estate Broker · Redwood City, CA · Member since 2014 · 679 posts · 888 votes
5y
This agent did not do anything wrong. For myself, as a buyer, this agent is top notch. He knows what he wants and can find deals. 99% of agents have no clue about investing, in contrary to what a lot of people are saying here. This agent knows what the market value is, and can commit his own money into it. That shows me he is the real deal. I would apologize to him about not acting quickly, and learn from him as much as I can about this local market. If he has other deals, pass it along. I would highly respect his evaluation of deals, since he can commit his own money in it.
Be humble, learn from other more experienced investors and your own mistakes. Stop blaming other people for your failure to act.
From patching together everything that has been stated here.
The "agent" mentioned a possible property that might fit @James G. needs but the agent had not locked down the property or had shown him the property. Once the agent did lock down the property, the agent decided to buy it himself. Did the agent do anything wrong here apart from lead on James G and waste his time? NO. And IF you are going to report him for wasting your time then every agent should report client's for doing the same.
The agent didn't do anything unethical here either. He did all the leg work, follow up and when an opportunity presented itself; he took it. We are all human and let's be honest IF you had the CASH on hand you would do the same given the outlined circumstances above.
James maybe become your agent and you'll see just how much work it takes to get/find/secure a deal.
Rental Property Investor · Member since 2020 · 32 posts · 35 votes
5y
@David Song good advice. Thank you.
Just to be clear, I’m not blaming him for anything other than not being upfront. I was ready to act (still am). I respect that it was his efforts that brought the deal around in the first place. And, they’re will always be more deals in future. I’m learning.
In addition to improving communication, I’ve learned form these posts that I definitely should be acting more on my own to bring a deal about, instead of just waiting for the realtor to.
So, starting tomorrow, I’m feet to pavement and will do more myself!
Real Estate Broker · Redwood City, CA · Member since 2014 · 679 posts · 888 votes
5y
@James G.leave some money on the table. Nobody is going to help you make money for nothing. A buyer agent is not paid by the buyer. They are just salesperson for the seller, and paid by seller. You did not lose any money. So there is no reason to be upset about it. The key is to know what is a good deal, and what is not. If you know that, you will make money easily. when I started in 2009, I had a great agent helping me. He knows the market really well, and I purchased and sold through him over 10 transactions and learned from him a lot. After I got broker license, I still keep contact with him and take him out for dinner once in a while. His knowledge of the market is extremely valuable to me.
As a new investor, do not be arrogant. Do not burn the bridge. Humble yourself and learn as much as you can from experienced agents. Pay them well. Find ways to reward them by closing multiple deals with them . That will gain their trust and bring you more deals down the road.
Real Estate Agent · Joplin, MO · Member since 2018 · 112 posts · 96 votes
5y
@James G. Great thread, I appreciate your level headed response to all sorts of answers from the group.
Tough spot for sure, especially when the most typical advice from BP in regards to interviewing agents is asking if the agent invests so that they are compete at to assist you.
This sort of situation happens from time to time. If you’ve got a solid, investor friendly agent, it’s likely worth sticking with it and addressing your concerns.
Real Estate Agent · Las Vegas, NV · Member since 2020 · 459 posts · 305 votes
5y
I would make sure it is known to all investors who this agent is. As an agent it is my duty to keep my clients interest before mine. The fact they took a deal is extremely unfair and if they are not the broker, I would inform their broker of what happened.
Wholesaler · Newark, NJ · Member since 2018 · 30 posts · 8 votes
5y
@James G.
A lot of mixed reviews and questions.
After reading this, this is definitely a learning experience in having indepth discussions of expectations, time lines, definitive actions, sense of urgency, and responsibilities.
Questions that may or may not have answers:
Under exclusive agent contract or not?
Time elapsed from last follow up?
"A number of houses"...how many?
Time frame...Before Christmas? After Christmas?
How long working with agent?
Should disclose interests in properties or wait til you view and offer?
Did agent give you any details on the property at all so you could talk/contact the owner, if the agent wasn't responding?
Is it worth it reporting to realtor board?
You didn't fire the agent instead wanted 2nd opinion. Do you still work with agent why or why not?
Why would the agent tell you about the deal at all and risk being reported to the board?