Working with more than one realtor at a time. Ok or not ok?
Investor · Saint Petersburg, FL · Member since 2016 · 29 posts · 14 votes
Working with more than one realtor at a time. Ok or not ok?
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Bel Air, MD · Member since 2015 · 42 posts · 15 votes
10yHi Suzane, Russell in 1000% right. Additionally, can you go into depth when you state that working with multiple realtors will provide you more access to more properties? Just curious as to all agents view all properties the same way. For an example if a client is looking to buy a 3bd 2.5bath under 275,000 etc once searched in the MLS you will receive the same feedback from each agent regarding their findings due to them all looking at the same information (hopefully that makes since). Here in MD all agents view properties through the MLS using MRIS yet, this may be different in florida. Also, an agent will ask you if you are already working with another agent due to the fact that if you are and if you have signed an agency agreement, the agent asking that question can not come between that agreement between you and your current broker due to the current contract. Lastly, if you do sign an agency agreement, and you feel as you are not gaining anything from the current agent, I would first recommend talking to the agent and or broker first. If no changes then you are able to terminate the contract due to the agent not doing their fiduciary duties but, I would review the terms of the contract before considering termination.
28 Replies
- Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes10y
Any realtor worth working with will only work with you in an exclusive arrangements. The ones who will work with you without exclusivity are ones not worth working with. (Unless you are willing to pay them for their time/work out of pocket without closing a deal)
District Invest Group545 Reviews - Bel Air, MD · Member since 2015 · 42 posts · 15 votes10y
Hi Suzane, Russell in 1000% right. Additionally, can you go into depth when you state that working with multiple realtors will provide you more access to more properties? Just curious as to all agents view all properties the same way. For an example if a client is looking to buy a 3bd 2.5bath under 275,000 etc once searched in the MLS you will receive the same feedback from each agent regarding their findings due to them all looking at the same information (hopefully that makes since). Here in MD all agents view properties through the MLS using MRIS yet, this may be different in florida. Also, an agent will ask you if you are already working with another agent due to the fact that if you are and if you have signed an agency agreement, the agent asking that question can not come between that agreement between you and your current broker due to the current contract. Lastly, if you do sign an agency agreement, and you feel as you are not gaining anything from the current agent, I would first recommend talking to the agent and or broker first. If no changes then you are able to terminate the contract due to the agent not doing their fiduciary duties but, I would review the terms of the contract before considering termination.
- Investor · Saint Petersburg, FL · Member since 2016 · 29 posts · 14 votes10y
Thanks for your input. I am referring more to buying real estate, rather than selling. I understand the need to be exclusive when selling but not really when buying. I dont necessarily need a realtor to sign me up for email alerts for on market property listings as I prefer to look in the MLS and online and get that information myself. But what I would like from a realtor is to pass on their experience and knowledge of a property in terms of whether it is a good buy for me based on my needs, criteria, return on investment, rental viability. This would help reduce the amount of work for me. More often than not I seem to be finding realtors that are only capable of sending me listings and if I ask too many questions I dont hear from them again. Alternatively, I find the properties myself and the realtor really only does the closing paperwork. This has been the case for the last 12 houses I bought. I dont have time for this anymore so I have reached out here on Bigger Pockets and have made interesting connections. I know there are knowledgeable realtors out there with investment understanding, its just a matter of finding them. To answer your question Ti, I have found that different realtors have different contacts with regards to off market deals which is really what I am looking for. Sticking to one realtor limits my access to off market deals because they dont come up that often. Loving these forums.
- Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes10y
Originally posted by @Suzane Ivas:
Thanks for your input. I am referring more to buying real estate, rather than selling. I understand the need to be exclusive when selling but not really when buying. (1) I dont necessarily need a realtor to sign me up for email alerts for on market property listings as I prefer to look in the MLS and online and get that information myself. But what I would like from a realtor is to pass on their experience and knowledge of a property in terms of whether it is a good buy for me based on my needs, criteria, return on investment, rental viability. This would help reduce the amount of work for me. More often than not I seem to be finding realtors that are only capable of sending me listings and if I ask too many questions I dont hear from them again. Alternatively, I find the properties myself and the realtor really only does the closing paperwork. This has been the case for the last 12 houses I bought. I dont have time for this anymore so I have reached out here on Bigger Pockets and have made interesting connections. I know there are knowledgeable realtors out there with investment understanding, its just a matter of finding them. (2) To answer your question Ti, I have found that different realtors have different contacts with regards to off market deals which is really what I am looking for. Sticking to one realtor limits my access to off market deals because they dont come up that often. Loving these forums.
I'd suggest working with one at a time.
(1) So if you meet Realtor Joe and Joe is informative and helpful, which is what you want, great. And suppose it's been 3 months, you still haven't purchased a house with Realtor Joe, and you meet Realtor Jane who is more informative and more helpful, great - move on from Joe to Jane. Like dating in middle school. You gave Joe 3 months and he didn't sell you a home, that's on him.
(2) As addendum to #1, I'd say it's fair/reasonable to buy with Realtor Fred, not Jane or Joe, even if you've never viewed a house with Realtor Fred, if and only if Realtor Fred in the meantime finds you some screaming deal that Jane or Joe wouldn't have had access to because it's not on the MLS, or any websites, and it's from Realtor Fred's personal connections / network / marketing / whatever.
But in terms of your primary person to call and say "Hey what do you think of 123 main st and this claimed ARV? Do you have 45 minutes to crunch numbers with me?" - I feel like you should have exactly one realtor at a time for that type of time-taking activity.
- Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes10y
Yup, you missed the point entirely, and that's why you won't end up working with a Realtor who is actually worth working with. An agent who will work under those conditions doesn't value their time, and that is because their time is not valuable. My time is valuable. So if someone wanted to work with me, but not exclusively then they could pay me my hourly consulting rate of $175 an hour. I can't imagine why someone whose time is actually valuable would work with someone without a high likelihood of being paid for that work.
District Invest Group545 Reviews - 10yJoe VilleneuvePro MemberPlymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
Exclusive agreements with REA are for homeowners, not REI. I work with a number of REA...and most of them know eachother. As a REI, I would never agree to any exclusive agreement with a REA. @Suzane Ivas you are 100% correct in your statement/question.
- Investor · Saint Petersburg, FL · Member since 2016 · 29 posts · 14 votes10y
Thanks Joe. Finding that realtor who is Investment savvy is gold. I would happily pay for their quality time. I deal with many realtors here in Australia which is primarily where I live, who are investors themselves. So they are fast and good at identifying whether an investment property is worth pursuing or not. We don't do exclusive contracts with buyers agents for buying property and it works very well. Just need a realtor like that in St Pete.
- Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes10y
"Any realtor worth working with will only work with you in an exclusive arrangements."
I'm not sure if I agree with this in all cases. In one of my markets, I have one realtor for buying SFRs, one realtor for buying or selling vacant land, and work only with listing agents when bidding on multi-family (since many agents try to double-dip on multi-family purchases, and since the majority of multi sales in some markets are with the listing agent representing both parties). They all seem quite happy with the arrangement, perhaps the clear separation means they are not worried about wasting time.
- 10yJeff CopelandBusiness MemberReal Estate Broker · Tampa Bay/St Petersburg, FL · Member since 2015 · 1k+ posts · 2k+ votes
The main reason you're likely to be asked that question ("Are you already working with another Realtor?") is the National Association of Realtor's Code of Ethics prohibits us from soliciting business from another Realtor's clients. It's a matter of professional courtesy, and is the source of many ethics complaints/violations.
You are correct that it's more fluid on the buying side than on the listing side, but it is not uncommon for Realtors to have exclusive buyer's agency agreements with their clients, so we have to ask.
As this thread shows, opinions will vary on whether it's worth each party's time and effort to work in a non-exclusive arrangement...personally, I don't have a problem with it, but it depends on the person and the relationship, and it has to be mutually beneficial.
Copeland Morgan LLC4.770 Reviews - Professional · Baltimore, MD · Member since 2010 · 79 posts · 47 votes10yIf I'm following this correctly, I would say you are not looking for a "Realtor" as a real estate agent , but a "Realtor" as in real estate consultant. It looks like You find deals just fine, which is an agents job, so move to finding a Realtor with a real estate consultant designation. They will help in the analysis better than a plain agent, but it will cost something. Finding an agent that gives free off market deal hunting and property consulting services with no promise of compensation is the same as the wholesaler hunting for the "motivated seller" among pretty houses in expensive neighborhoods. You will go thru hundreds of agent leads before finding someone good for the moment and it never means they are" investing savvy/ investor friendly." Most problems come when people try to dodge fees. Investors have misused agents many times baiting with the whole "help me for free and maybe I pay you a fee" way of acting. Which causes many agents to be defensive, unmotivated, or deny work with investors. So in conclusion.... TL;DR - Stop looking for an real estate agent and hire a licensed real estate consultant to be on a monthly retainer or some type of flat fee. It's easier for you and all parties involved. Just my 2cents.
- Lewis Center, OH · Member since 2016 · 23 posts · 12 votes10yIf you are looking to have a different agent by strategy - one for SF, another for MF - why not discuss that with your current agent? If you are open and transparent about your strategy, they might even be able to suggest some people & then you are building your team. But if you are talking about having 3 agents show you the same SF so you can get 3 different opinions (and you don't tell them you are working with other agents), that's different. If I were the original agent I would feel misled & probably not make you a priority client, much like Russell Brazil said.
- Rental Property Investor · Cleveland, OH · Member since 2015 · 1k+ posts · 880 votes10y
Real estate agents get paid when a transaction closes. If you are working with me and I'm providing you good service and then find out later that you wrote an offer on something with a different agent you're never going to get service from me again. Good agents will bend over backwards for their clients and do what it takes to get deals done. If you're working with a good agent then you shouldn't need other agents. If one agent isn't performing, tell them you are moving on or risk developing a reputation of a crappy investor that isn't agent friendly. Agents talk too and you'll get to the point where you'll run yourself out of good agents in the area that will even answer your calls or texts.
- Investor · Coeur d'Alene, ID · Member since 2016 · 551 posts · 218 votes10y
I too work with more then one REA. I will never sign a contract to work with only one. I also always find the properities myself and really only need an agent to do the closing things. I find this to be the case in the past areas that I have lived.
- Investor · Coeur d'Alene, ID · Member since 2016 · 551 posts · 218 votes10y
Also I'm always upfront with the agents that I'm working with other agents.
- Boca Raton, FL · Member since 2016 · 145 posts · 67 votes10y
When buying property Agents use the same databases (MLS) so different agents will provide you with same information; nevertheless the best idea is to get a Realtor that you feel comfortable with. An agent that understands your investment strategy and goals (flip, buy remodel and hold, brrrr, or just buy and hold, etc). An agent that can run the numbers and understand what is a good deal, that can "estimate" repairs roughly, that can help you finding finance, that can anticipate what is a normal rent, and a potential ARV. Ideally an agent that uses the BP calculators and can present you with a sound plan with "numbers" ... in this business it is all about the numbers. An agent that can structure the deal so it adapts to your strategy and goals. An agent that finds deals where nobody else can. Once you find an agent that becomes your wingman and is not looking for 1 commission but for a constant stream of commission ... you will have no interest in looking elsewhere.
Analyze and interview your prospective agent and make sure he/she understands what he/she is dealing with. Most Realtors do normal traditional residential deals and the community in BP is anything but traditional conventional buyers. We all are special!
- Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes10y
@Suzane Ivas when reading responses, make sure to consider the source. If you surveyed real estate agents, the greater percentage would prefer exclusivity. Can you blame them? Who likes to spend their time with someone is only partly loyal.
Many years ago when I first went home hunting I had a bad experience with an aggressive agent you tried to muscle me into signing and exclusivity agreement. I would have been loyal to her but the manner in which she pushed the agreement on me, I ultimately walked away.
Today I only work with one agent and it is loyalty without a written agreement. I get good treatment. I believe if I worked with multiple agents I would not get the attention I need. That being said, I don't see any problem with you working with multiple agents since it seems to work for you. In fact there are many investors who do this. One purchase strategy I hear often is to use the listing agent for your purchase. They have inside information and they stand to make the full 6% commission, so they will work harder to make sure your offer is the one accepted (I know technically they shouldn't show any preference, but we all know reality).
There are many different paths to real estate success. My best advice is be honest with your agents about your non-exclusive agreement, so they understand up front how the relationship works. If they are ok and it works for you, no reason to change.
- 10yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
@Suzane Ivas I think the answer is it depends.
I is a broker.. but I use multiple brokers in multiple states.. since we are in the building or flipping business NOT buy and hold .. this is quite different than working with a broker for buy and hold were your maybe only good for one or two transactions a year or will only buy one in a lifetime .
With my agents its known with them that I list back .. IE you bring me a deal that I buy you get paid once ready for market you get the listing... And many times I will have profit for the agent built into the deal on TOP of commission.. now you want to get first look at deals.. that's the way to do it. LOL. then the agents will sort themselves out.. the hustlers bring you deals consistently others maybe occasionally or work with you once then they are off to the next shinny object.
If your a buy hold and want an agent to be johnny at the rat hole then I think some exclusivity is warranted..
So if I look at my Charleston Market for instance.. I have one broker team that has brought me listings ( they scourer hot sheet and constantly market for me) Look at 74 America for instance you can see one of my new builds.. they found the lot we list back. Another broker in that town only brings me off market deals then I list back plus I pay him a commission to find it.. look at 24 Cleveland this was off market ..
Other brokers I put them into the flipping business.. were we partner on everything we do. and they run rehabs... I find this to be my very best partner is the Real Estate professional..
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes10y
Originally posted by @Suzane Ivas:
Oftentimes realtors will ask if I am already working with another agent. Does this mean they won't work with me if I am? I find working with one realtor very restrictive and slow. Working with multiple realtors means I get different perspectives, more access to more properties and I don't get stuck working with someone who is not adding any value. Outside of the US this is normal practise but I feel this is not in the US. Any thoughts?
Regards
Suzy
A real estate agent does not get paid unless the deal closes. What this means to you is that when you are working with a real estate agent you have to understand that the agent is working for you in good faith. It is a lot like ordering dinner at a restaurant. The restaurant serves you food and beverages in good faith with the understanding that you will still be there to pay the tab after the dinner is over. Working with an agent is the same way. They will expect you to use them when writing an offer on the property you finally choose to buy.
If the agent finds out you wrote an offer with another agent after they spent all of that time and money working for you they will likely treat you the same way a restaurant owner would treat someone who did not pay for their dinner.
- Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes10y
Suzane you are using the "Octopus approach". Throw a bunch of tentacles out and see what sticks and comes back to you.
Nothing wrong with that if you FULLY DISCLOSE upfront what you are doing. If you tell them right away on first contact " I am looking all over the country for properties to buy. I make money using this XXXXXXX structure buying deals. I am looking for off market as anyone can send me MLS feeds. I work with many brokers and agents."
Now the broker or agent knows you do not really want an exclusive relationship and are just fishing for deals from anyone and everyone.
I am on the commercial real estate side. I do ask if they are working with anyone else? Why do I do that? I have many clients and my time is valuable. I have reached a point in my career where I am in demand for services.
Typically I find large funds that buy across the country are looking for anyone and everyone to bring them deals. They are experienced buyers but want an above market deal. Those deals do not come up often so brokers and agents will look while going through other properties but not heavily focus on the long shots.
The other part of the business is people needing exclusive help and want the relationship one on one. I get for instance people trading out of an asset for small multifamily and then buying a 5 million strip center. They need specialized help for that so they come to me. It takes a lot of work to help them understand the process so it is a commitment from both parties.
If you are looking for cheap properties to flip SFR you are in a different world.
Experienced brokers and agents run a for profit business. The newbies with nothing going on are generally the gophers who will run around like crazy with little direction to make something happen. As an investor myself I understand return on my time. If you waste people's time you are costing them money whether that is a buyer or the broker/agent.
The new agents typically do not have the network for the "first look" deals you are seeking. On the commercial side we send out letters constantly to owners, talk to property management companies, development companies directly sourcing properties. It takes a lot of time and effort finding these good deals.
Someone giving me a fleeting call looking for the "good stuff" and talking to 15 others is not going to get on my "inner circle" of clients I present deals to. That's just the way it works for a lot of broker/agents.
If someone new calls I first see if we are on the same page for a working relationship. If so we agree to work one on one to find what they want for commercial. If they are unrealistic they need to change area or expected return. If that broker/agent is falling short then move on to someone else. Best thing to do is work with one person in that area and see if they are getting it done. If not move on.
I would rather have 20 clients working one on one to reach their goals then buyers calling around all over the place. In the business they are called "flaky buyers". They have no loyalty to anyone and are unstable so you never know what they are going to do and if they will close anything. No long term relationship to solidify doing repeat business over and over.
Just my perspective as a principal broker and an investor. All the best.
- 10yRich N.Pro MemberInvestor · Haverhill, MA · Member since 2015 · 761 posts · 328 votes
If your a one timer buyer (not folks here), then using multiple ones happen often, but when it comes to multiple buys, its best to go with one. Although I go with two...but that is based on location and two different partnership groups.
As for finding properties, I have bought properties off the MLS with the agent, using my agent after I found the property and the most important reason you should be using a good competent agent is properties I got that never made it to the market :)
- Rental Property Investor · SF Bay Area · Member since 2015 · 154 posts · 179 votes10y
Originally posted by @Suzane Ivas:
Thanks for your input. I am referring more to buying real estate, rather than selling. I understand the need to be exclusive when selling but not really when buying. I dont necessarily need a realtor to sign me up for email alerts for on market property listings as I prefer to look in the MLS and online and get that information myself. But what I would like from a realtor is to pass on their experience and knowledge of a property in terms of whether it is a good buy for me based on my needs, criteria, return on investment, rental viability. This would help reduce the amount of work for me. More often than not I seem to be finding realtors that are only capable of sending me listings and if I ask too many questions I dont hear from them again. Alternatively, I find the properties myself and the realtor really only does the closing paperwork. This has been the case for the last 12 houses I bought. I dont have time for this anymore so I have reached out here on Bigger Pockets and have made interesting connections. I know there are knowledgeable realtors out there with investment understanding, its just a matter of finding them. To answer your question Ti, I have found that different realtors have different contacts with regards to off market deals which is really what I am looking for. Sticking to one realtor limits my access to off market deals because they dont come up that often. Loving these forums.
Hi Suzane - If you know what you want and what you are doing (and if you have already bought 12 houses I assume that might be the case, you could opt to contact the selling realtor directly. I would not recommend that to a newbie, but if you already know what you want and willing to pay, what to look for etc, why not. And while you do that, you might meet a realtor that is so awesome that you'll want their advise on other deals as well. And even if it does not work out on that deal, you can ask the realtor to keep you in mind if in the future they have a property *that they themselves list* matching your requirements.
Again, this is not for everyone but I have done this a few times in the past and it has worked well for me. I just call them directly and say, "I would like you to be my realtor on this deal and make an offer for me on such and so property that you list. What can you tell me about it?" Then I say "I don't want to waste both or our times, but I am thinking of offering $X, does this put me in the ballpark"? If not, you both save yourselves some time docu-signing back and forth. If the realtor agrees to take the offer you know it at least will most likely not be outright rejected. If they dont like the price I politely thank them for their time.
If it seems to go anywhere and you schedule an inspection you can bring along whoever you want and trust. So if you have someone whose judgement you very much value, you can bring them along and pay them what you guys agree on for the hour or two it takes. Same for reviewing the documents, you can pay someone to do that on your behalf if you want/need.
Anyway that is my two cents on that. By the way, I can totally understand the realtors perspective of not wanting to trawl 40 insulting offers on behalf of a hopeful low-baller or to tour around "aspiring" investors that live in fantasy land and basically just need someone to validate them for a weekend here or there:).
Also most regular realtors don't really know about investment property (and are not interested) and I have found that instead of just telling me that and moving on they waste my time making vague promises and stalling, waiting for me to move on. Why not just come out and tell me in a respectful way? :? Anyway, just sayin' that your experience is probably typical.
- Real Estate Consultant · Houston, TX · Member since 2015 · 172 posts · 51 votes10y
Hi @Suzane Ivas in my opinion it's about building relationships and a real estate team when investing. So hopefully the goal is to find someone that will fit your criteria when looking for a real estate agent. The agents that are serious about what they do they typically show you their work ethic before you sign an agreement. I for one only want to work with those who want to work with me. So if an agent isn't adding any value it's as simple as having a conversation in regards to ending the agreement; however I think the most important point is to value the time of everyone involved including yourself.
- Real Estate Agent · Austin, TX · Member since 2014 · 636 posts · 486 votes10y
Wow! I'm a fan of this thread; very interesting opinions to read. My personal view is that you can find good realtors and bad realtors, but having multiple good realtors won't help you much. As has been stated previously, they all have access to the same MLS data, and they all use the same forms, so as long as they're honest, responsive, and truly understand your goals, it doesn't matter whether you have 1 or 100 realtors. Feel free to quote me on that.
- Investor · Syracuse, NY · Member since 2014 · 13 posts · 0 votes10y
This post has certainly brought enough opinion to the discussion from both agent and investor viewpoints.
I do think it is important to build your team and develop the trust for long term relationships. Developing a long term relationship may take working with a few agents to find the team member that fits best. Same as with your accounting, property management, contractors and legal team members.
It is important that we don't waste the an agent's time and show that we can perform when a deal presents. I would suggest that agents also realize that waiting for them to find and present off market deals is taking time from the investor. Time that could have been used in due diligence and closing a good deal.
As a new investor I am trying to see things from all sides. I hope to make the right decisions at the right time to result in a win win more times than not.
Chip
- Involved In Real Estate · Upper Marlboro, MD · Member since 2014 · 246 posts · 230 votes10yAll decent agents are going to require you sign an exclusive agency agreement. This agreement will require you to pay a commission, regardless of who brought you the deal. This means (legally) you'll be liable to pay a commission to every agent you've signed this agreement with. More importantly, RealEstate is a business based on trust. Once your Buyers Agent finds out you've signed deals with other agents, your reputation is mud. The better approach would be to: a) Find the best Investor/Agent you can and figure out the best way to maximize the relationship; b) Have an open line of communication and let them know, up front, that you plan on working with another agent, and why. c) If you're hiring someone for their local knowledge, then they should not have a problem with your working with another agent in another jurisdiction, especially if you're crossing state lines. Just make sure you put this in your Buyer Agency Agreement. This is generally referred to as a "carve out". This will prevent you from being obligated to pay double commissions.
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