I guess I wanted to get an understanding of how a conversation goes between an agent and buyer. I reached out to an agent this morning in reference to a property that's close to my home. The unit was 6 beds 3 baths 2,576 sqft roughly for 80k only to find out it was just put under contract which kind of confused me if it's currently under contract its still listed as for sale! It needed about 80k in repairs due to fire damage which probably explained the holes in the floor in the description of the property. The agent was informative and also suggested other properties in the surrounding area once I mentioned I was new to investing in rehab properties. I don't just want to jump the gun with this one agent. My question is there an limit as to how many agents you can do business with? Should I reach out to other agents before jumping and doing business with the first agents response?
If the property was a foreclosure or REO then when they accept a contract they consider it ratified, but technically the agent has to wait on the final initials for sometimes as long as two weeks. Typically the agents agreement to the mls is that it doesn't get changed until it is ratified, which would mean that all the initials have to be signed and delivered. This is how many of the distressed properties will still show active, but are actually under contract. Also, if you were looking at zillow, trulia, etc. they may not be accurate. It sometimes takes them longer to make the changes to their listings than it does the mls site.
Jumping from agent to agent is very common for investors to do, but typically not a great idea. If agents know that the investor is calling a bunch of other agents they are less likely to spend time trying to work for you, because they may invest a lot of time with no return. This doesn't mean that you should settle for the first agent that answers a few questions for you. I would research agents that work in the areas of interest that you have, and have complimentary knowledge that you may not have. For example I know an agent that used to be a lender, so investors that don't have much lending knowledge could benefit from working with him. I spent most of my life as a general contractor, and often work with investors without much construction knowledge so I can help them figure things out during the discovery process. I would recommend researching some different agents and then scheduling with them to sit down for coffee and discuss. If they don't take the time to meet with you, its probably not the right fit anyway.
Good Luck! Aaron
I suggest interviewing a few different agents and not just settling for the first one you come across. You may burn some bridges by shopping around, but I like to be very clear with agents that I am talking to others so that they aren't surprised. As Aaron mentioned, each agent is going to bring something different to the table and I would suggest being very honest with yourself when it comes to what you are good and bad at. For example, if you aren't great at running the numbers, you might want to find an agent that is also an investor and can run the numbers for you. Additionally, if you are looking at multiple areas, you can definitely work with different agents as they may not be well versed in every area (even within the same city). I have found this is the case out in LA where I am based. Let me know if you have any questions I can help to answer.
@Walter @Aaron Poling Thank you for your feed back I'm definitely going to take your advice and interview a few more agents to discuss my options further and from there.