Working with more than one realtor at a time. Ok or not ok?
Investor · Saint Petersburg, FL · Member since 2016 · 29 posts · 14 votes
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
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.
Very relevant question! As a multifamily investor, I do work with a variety of different agents who also overlap territories/regions when I'm buying. It doesn't sound like this will be a popular answer, but I don't see anything wrong with it.
To me, this is about honesty, integrity, and your ability to build relationships. Don't get me wrong, it's not always the most comfortable place to be working with multiple realtors (if you focus on a particular region the community will overlap), but I would say you have to follow some ground rules to make it work. As several people have already suggested, you have to be upfront about not being exclusive. In addition, you should set ground rules so the people you work with know what to expect. For example, all my agents know that if two or more brokers bring me the same opportunity, I go with the person who got to me first - fair and square. They also know that if they get me a deal that closes, that's going to be theirs to sell when the time comes. There's a lot of value in being a straight shooter. The other thing that helps is just generally building a strong reputation in the community. Are you a closer? Do people like working with you? Are you always chipping away at commission? You can also help various relationships by referring new clients or rewarding some by listing properties with them that aren't tied to any particular agent. You can sometimes let your broker participate in an investment as a partner in lieu of commission, too.
The only caveat I'll add, is that you really have to be "active enough" to do this. Knowing that you're someone who is constantly buying, or that can close the big deals means brokers have a reason to want to work with you, even if you're not exclusive.
With all due respect to the real estate agents who've replied here, no single agent has access to every single deal (and in my very competitive market, a lot of deals are NOT on the MLS). And as much as I respect the value that brokers bring to the table, it's not like the agents are being exclusive to me as an investor either. The capable ones have several bigger investors for whom they are divvying up off-market product. Some agents who are also investors cherry pick the best deals for themselves, too. All I'm saying philosophically here, is that it just doesn't seem fair to be one-way exclusive.
Definitely DO NOT work with multiple agents behind the agents' backs, especially when you focus on one region. It may work for the short term, but you'll be found out eventually, and the hit to your reputation won't be worth it.
Is this still relevant in today's market. I can see both sides of the equation. As an investor, that's why I joined BP. I want more eyes looking for me. Some agents may be aware of properties others are not. I don't want to limit myself.
I actually spoke with an agent a few minutes ago and she went on about her company ethics and so on. Don't know how true it is. But, if some investors work with more than one, why not you or I?
Good luck and prosperity to all.