Real Estate Broker · Spokane, WA · Member since 2018 · 125 posts · 32 votes
Hello fellow BP family.
Diving back into the Spokane real estate market and want to know, do you have a real estate broker/agent on your team? Why or why not?
I am a real estate broker and I like to think that I am useful to my clients. However, I have heard multiple times that "agents" are useless. Please tell me how you really feel!;)
I want feedback, any and all feedback, the good, the bad and the nasty! ALL!!!
Rental Property Investor · MN · Member since 2017 · 864 posts · 555 votes
7y
@Tyler Barranger I absolutely have brokers on my team, they can bring me deals that I would have otherwise missed out on. I like to focus on what I do best and outsource the rest.
Real Estate Broker · Spokane, WA · Member since 2018 · 125 posts · 32 votes
7y
Thank you for your response Jake.
Eric,
Not sure if you noticed, that was a "/"in between broker/agent, meaning they are the same thing. Also, a bias? A bias as far as a preference between the two? Or a bias of working with an agent/broker or not? If that is the case then yes, because I am one. I simply was asking for opinions, this is the exact reason I ask, because there are a ton of all knowing, self righteous "brokers/agents" that give "our/my" profession a bad name.
All responses are welcome. I enjoy hearing the "nightmare" stories as much as the joys agents bring.
Harrisburg, SD · Member since 2017 · 8 posts · 8 votes
7y
I think the truth is that it is so hard to find a "good" investor agent. Agents like to fudge numbers like, vacancy, cap rates, Reserves, NOI, rental rates, capital expenditures, and management. So if you sit down with any agent and ask the following question, what is typical vacancy on a single family home in the market? you get quotes on current vacancy rates i.e 5%, well that may be for the total area looking at total units vs total rented. Well, it is a single family home, so if it vacant for 1 month, that is 1/12 (8%) if you run a 5% vacancy number and it moves to 2 months, that is 16%, and more than that and it can be a mess. Also that one month will throw off future rentals and may move your rental agreement from stopping in July to August... The next line that I hear agents say commonly is, I can help you do the management, or don't pay someone to manage the property. Well, if you don't pay someone, who is paying you for your time? Management in my opinion should always have a line with or without a property manager. Every agent will tell you I can help, but can they honestly help and do correct numbers or fix your projections.... I have found that the answer is no, and if it were yes, would they be an investor or an agent? Each investor should run their own numbers and understand how to make their projections work. Agents typically don't care if you financially wound yourself by doing rentals, in fact they will help you buy and sell a terrible investment so they get the money on both ends of the transaction... Agents help with transactions and not math, and investing is a math problem. Agents care, want to help, and give advice, but from what I have seen, most are poor at math. They feel you out for this, "Are you ready to buy a property?" If they think no, you won't hear from most of them again, and an investor is like a hunter with one or two bullets. Investors get to take A shot, their shot, their way and on their terms. Being an agent and trying to "gas them up" to purchase things at a higher price, is an agent not looking out for their clients best interest. Most agents/brokers are in Real Estate for the transaction..... If you truly want to cater to your investor clients, run your own numbers on 100 properties a month, then help them do the same. Investing is a matter of execution and planning, so the question really is are you going to throw out an offer from a client to a "friend" agent that is 30% below asking? Your investor client has the math to back up his price. Investors know that no deal is better than a bad deal... agents don't always see that.
Tyler, I rely heavily on my realtor to bring me deals and provide accurate info so I can make decisions. I feel lucky to have found a realtor that is an investor and has done and is doing fix and flips. Like any other professional that I use, I keep tabs on what they do and the information they provide. After all it is my business and my responsibility. @Phil, sounds like you have had problems in the past. It can be hard to find the right team for sure but having that team can really help your business prosper.
Investor · Chicago, IL · Member since 2010 · 76 posts · 55 votes
7y
I sell by paying a local realtor $200 to get on MLS in their name, and pay 3% buyer agent commission.
I always buy through sellers agent using dual agency. This has netted me incredible savings, as double commission tends to be a huge motivator for the agent to get my offer accepted. I have also had many agents share the sellers lowest accept offer.
I have seen some great agents, they are about 1 in 20. The other 19 are just a speed bump to making money. They are hard working, but their work is all in landing clients, not helping me.
Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
7y
Hi Tyler,
Yes, having the correct agent is vital to the success of a RE buyer. For every 1 buyer that says they don't need an agent, you have 50 that do. Now all agents are not made equal and like many professions out there-there are more crappy ones than good. I recently took on some new clients and they have been struggling to buy a house for the last 8 months. In 2 weeks we are in a contract and got them exactly what they were looking for. Focus on your clients and getting the results and you never have to worry about buyers not needing an agent or not.
Real Estate Broker · East TN Loudon/Lenoir City/Tellico Village · Member since 2014 · 363 posts · 222 votes
7y
@Tyler Barranger
I do and always have. With out of state investing it was vital I find local representation. But that being said I also took the classes and got my license locally so I would know what they knew also regarding regulations and basic contracts. It was not always easy finding investor friendly pros because alot just want no questions top dollar. I always wanted to find a deal.
Now having moved to another state from where I first started I still feel the same way and continued with my license here also. Except I do enjoy working with fsbo whenever I can.