Working with an agent - good idea?

Question

Mike Cumbie · Answer

Hi @Michael Meserve.

If You would like to chase after properties unrepresented then I will offer a bit of advice:

1) Have a POF/Pre-Approval and send it off before making a phone call. "I saw your property listed at 123 Main street and am interested in seeing it.... I do not have an agent and will be representing myself but would like you to write up the contract for us".

2) Realize that I have the line on about 10 properties "about" to enter the market. Everyone is "cleaning up a few things". and "Have to get the room painted and carpet in the spare room".

Why do I know that? Because they asked me what they needed to do to sell it. I walked in their house and gave them a 2 page list. They are queued up and I am shopping them long before they hit the MLS or Zillow or Trulia.

3) Tell me what you are actually looking for when you call. Sure this one may have 4 buyers already (and a new prospect never really had a shot) , but knowing what you are looking for may have me call you on the next one.

4) I know other agents and when I have exhausted my supply of something showing up tomorrow.... I make a quick shout before I list. Because I have to put it on the MLS within 24 hours of listing and I know what other agents perform. They have a 24 hour head start from the other generic agents.

Good luck and hope it had a different perspective!

Russell Brazil · Answer

You know how many times an unrepresented buyer has purchased a property I've had for sale...zero times.  If I'm the listing agent and someone without an agent wants to see the property, I have zero incentive to waste my time since I know there is 100% chance they will not buy the property.

Mike Abramowitz · Answer

@Michael Meserve There's no doubt you know more than most agents in your market. One thing that I've found unbelievably frustrating is that so many agents are absolutely clueless about what makes a decent investment and what a decent price is to purchase at. To put it into perspective, I just took the test to get my RE salesperson license and the process took me all of 7 days from the start of the classes to sitting for the exam and passing. How much are you really going to learn in 7 days?

On the flip side, @Russell Brazil is an agent and doesn't sound like he wouldn't give you the time of day if you requested a singular showing through him. I've gone through listing agents before (maybe 4 separate times) and have in fact purchased a property through listing agents. I guess I'm the exception to the rule? BUT I've also contacted listing agents before and just never heard back, I assume due to the same mentality Russell described above.

So to answer your question bluntly, there are a lot of incompetent Realtors out there, and they do a job that you certainly could do yourself, however, it's not going to save you any money not having an agent on your side. Go find an agent who is accommodating to your schedule and stick with them, or spend a week or two and go get your license so you can do it yourself.

Matthew King · Answer

I worked with an agent on a recently acquired investment property and while I don't mind going it alone, she has provided me with useful information, knowledge, and access to other homes I may have missed.

Russell Brazil · Answer

The problem with your friends premise is he is starting from the view point that the majority of agents will act unethically to gain double the commission.  Are there people out there that will steer  their clients to a worse offer in order to double end the deal? Absolutely. However the vast majority of homes being sold are being sold by a small number of highly successful agents, who have to act with the highest amount of ethics to safeguard their multimillion dollar businesses.  They are not concerned with trying to get and extra $5k, $10k, $15k in commission from the other end of the deal if it means jeopardizing millions of dollars being at stake.  In fact many brokerages have internal rules against dual agency even if the law allows it in a particular market. I operate primarily in 3 states, 2 of which allow dual agency and one that doesnt...but my brokerage does not allow me to be a dual agent even in the states where it is legal so that there is not even the appearance of wrong doing.

Chris Parrish · Answer

@Michael Meserve, I think there are obvious pros and cons. As a listing agent, I get excited to show one of my listings to someone who is unrepresented because that means I can potentially get a larger commission than if I just represented the seller. The nice thing about going through the LA is that you gain more control of the negotiations. The downside is that the agent you are speaking with is really primarily focused on taking care of the sellers.

Its up to you, but buyers agents don't cost you anything. If you work with a good one, I guarantee it will be a pleasant experience. Unfortunately the opposite is true if you work with a bad one...

Mike Abramowitz · Answer

Yah that was my mentality for the few properties I looked at with the listing agent (along with being in between agents while trying to find the right fit). At the end of the day you can do it that way but its going to save you a lot more time having your agent set up showings so utilize the free labor available. (I know, I know all you Agents out there probably hate that I'm referring to it as "free labor", but that's exactly what it is from the buyers side)

Working with an agent - good idea?

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