What does a great real estate agent do for an investor? What are the top 5 qualities for a real estate agent/broker to have in order to be of irreplaceable value to an investor?
Whatever It Takes
My favorites know their market inside an out. They can find a contractor when you need one, see the vision for the project, control timelines and budgets like a COO, communicate clearly and effectively with either side of a transaction, and always have "a guy" when you need one. They are connectors, relators, communicators, deal makers, and my favorite...... bulldogs.
On top of what Sean and Evan said, Im also a makeshift (in a moments notice):
boots on the ground - eyes and ears
A good real estate agent will:
- Keeps up with local and regional market activity and industry news
- Researches active, pending, and sold listings and reviews the daily MLS Hot Sheet or Activity Report
- Completes, submits, and files paperwork, such as real estate documents, agreements, and records with the proper state agencies
- Plans and coordinates appointments, open houses, showings, and meetings with clients and other real estate agents
- Develops marketing plans for listings and creates fliers, newsletters, and other promotional collateral
- Responds to incoming emails and phone calls
- Update websites, social media profiles, and blogs
@Greg Stetz It's hard to list everything, but...
- Have the buyer's back. Buyer's interests first, last and everything in between.
- Scour the available properties on or off market. Alert the buyer ASAP of new properties.
- Try to expose every negative about the property and the location before the buyer invests in inspections and appraisals. Train tracks, gun clubs, air strips, flood zones, busy roads, noise sources, etc.
- Do a walk through. Try to screen properties for defects.
- Run deeply detailed comps. Not the automated garbage, but real comps.
- Review disclosures with the buyer - lead paint, known defects, HOA docs, etc.
- Come up with conservative ARVs for rehabs and projected rents for buy & holds.
- Handle the writing of offers, including contingencies, repair requests and other provisions.
- Negotiate points of contention with the seller's agent, working to maintain a cool, professional demeanor, even when the other side gets agitated and unreasonable.
- Deflect unreasonable demands.
- Coordinate inspections and appraisals, providing comps for the appraiser.
- Challenge bad appraisals.
- Coordinate getting paperwork, EMD and 2nd deposits to the right parties at the right time.
- Keep all parties on their timeline so as to remain in contract.
- Work with the buyer to transfer all utilities.
- Set up the time and place for closing.
- Do a final walk-through of the property as close to closing as possible. Ideally, just an hour or so.
- Document remaining oil and/or propane in tanks so that the buyer isn't over charged for them.
- Document anything amiss during the walk-through.
- Coordinate a holdback of funds sufficient to remedy whatever is found at the walk-through.
- Attend the closing, ready to answer questions and extinguish any last second issues.
Often times I miss some of the simplest things. What stands out to me is when an agent really shows his/her best interest in my decision. Pointing out things I may otherwise not think of in the moment.
Also, honesty... this is by far the biggest of them all. Its easy to tell whether or not the agent is in it for themselves.
As an investor, you will probably push buttons. Your offers might seem crazy to some realtors with less experience, and they may get frustrated with you. Don't let it persuade you. Ive had two offers accepted that my realtors didn't even want to present because they were "too low". Well, when all was said and done, both weren't low enough.
You are correct. I’m going to be renting my house, I originally was going to sell it but my realtor said why don’t you rent it and she would find me a tenant.
This is all new to me and was quite nervous when she suggested this but this is the right thing to do and my realtor is awesome. I actually bought my house from her 8 years ago, she is the best.
1. Great agents are always reliable and will pick up their phone and get back to you asap.
2. Will tell you the truth even if you don't want to hear it.
3. They will answer a question for you that you are thinking of or not even thought of yet.
4. See the trend turn before you do.
My realtor says "I open doors. That's my job- you want to look at a property, I open the door."
He's a great one, and does so much more than that. He's got our back in every negotiation, no matter what, whether he agrees or not with our path. He's helped us find great contacts to work with as well.
A great agent will bring up and address things you haven't thought of, good and bad.
They will have ideas for physical spaces, ways to increase income or reduce expenses and bring up pitfalls or red flags to address and account for.
I am still seeking said agent. LOL (In my markets anyway)
Everyone hs said a lot of good stuff already but from an investor perspective my realtor is great because he also does flips and rehabs so when we look at a place he can accurately estimate the construction costs ans ARV. Some agents are completely clueless on this.
@Greg Stetz Looks like you’ve received some great responses. I’ll second the ones that mentioned the a realtor shouldn’t be looking for what works best for him/her, they should be looking for what’s best for you. End of the day, you’re the one left with the property, so it needs to fit with your goals.
Sell you like you beg to be sold baby!
Lets see, whisper tons of BS in your ear
Convince you the market is scarce
Tell you an appraisal before making an offer is silly
Argue with the bank when the bank appraisal tells you you're paying to much
Collect a fat 2.4% or more (which is a super big payday on a $30k house - lol)
Buy all the best deals themselves
Why do I feel I'm probably not making friends in this thread???
But seriously and I mean this, a good realtor earns every penny. It's a tough gig to navigate all the BS crazy buyers and sellers lay on them, and we're all crazy when we buy or sell. Willing to write an offer at 9pm on a Sunday??? Drag us around to 50 houses? That's gotta be worth some ching ching.