Real Estate Investor · Prince Geroge's County, MD · Member since 2012 · 392 posts · 104 votes
Okay so I have a buyer's agent who I work with to view investment properties and to evaluate deals however he lives about 50 miles away and can only get to me to see properties once a week. So I met another agent at a REI meeting and she lives closer, can act as a buyer's agent, can submit multiple low offers, will help with rehab management (since I have a full-time job), can list the property, provide property management services and also potentially set me up as a "personal assistant" to get MLS access after a relationship is built.
So it sounds like a good fit however I talked to her about getting wholesale deals that wouldn't involve an agent. I mentioned that I would need comps run on these potential deals and asked if she would be okay with running them however she mentioned there would be a $50 fee each time I run comps on a potential deal. She mentioned she would be essentially do a BPO and would have to charge $50 for it. Has anyone else come across their buyer's agent charging for comps for wholesale deals?
Two words: Dump her. She is not an expert in dealing with investors.
I completely disagree.
The fact that she refuses to pull comps for some random guy who has never bought a property through her and who is going to use those comps on wholesale deals where the agent has 0% chance of earning any commission, tells me that this agent has done this before and realizes that most investors are tire kickers and will do nothing more than waste her time.
Like I said above, once she makes some money off him (i.e., he proves he's not a tire kicker), then things change. U
Henry - Will you come wash my car for me for free if I promise to help you some money later? That's basically what Derek is asking...
I just spoke with an agent here in Cincinnati. Explained that I was a investor interested in comps on several properties that I'm looking to purchase./quote]So you are basing your question and your complaint on One experience with One agent? My advice would be to trash that one and try another. There are good agents and bad ones, good people and bad people. Find a good agent who is a good person. Don't give up after one try. Secondly, whenever the subject of money comes up, make sure you are not throwing out the first number. One of many negotiation rules.
To the topic, here is my stand. Many who have come to the defense of charging for the comp service are agents so one could argue that opinion is bias. I for one am Not an agent and have never paid for comps up front. However, I think that good agents with experience and knowledge of a market are assets and should be compensated for their time and expertise. If you can find an agent hat will run free comps, great, just know that you get what you pay for. An agent worth paying upfront could offer price opinions on value in addition to providing the comps, could provide insight to market conditions, insight to specific neighborhoods, etc.
I read last year an article about agents not fully being compensated for work performed. This article went on to state that pulling comps, providing market analysis, etc are items that could be and should be billed for. Too many do not and are cutting themselves short thinking that commissions are the only income stream to a licensee.
I have a question for us all. When in life do we turn down money and new-comers to our networks?
Keep in mind that a lot of the top agents are very busy, and they often need to figure out how to best utilize their time. These agents are accustomed to getting $5-10K per deal, and you're offering $50 at a time. Not to say this agent had any right to be rude or to indicate that you were doing anything wrong (you weren't!), but if you can put yourself in the agent's shoes, you may be able to understand why she didn't want to help you.
Now, that said, what's the right thing to do? I would suggest NOT focusing on the top agents for comps. Focus on agents who are in the top 50%, but not the top 10%. These are the agents who are in more need of the $50 at a time (and the possibility of adding a future superstar investor to their network), yet they are still good enough to be able to provide good comps.
So, I would continue to focus on real estate agents...just not the best agent. Also, realize that the best agents are rarely the best investor agents...so top 10% means nothing if the agent doesn't understand your goals.
First, I want to thank all of you guys for your comments. Your posts have been a constant source of knowledge and inspiration for me on this journey. Second, I had no idea this woman was top tier before I called her. If I had, I would have been a little reluctant to phone. However, I know that there are a sea of agents who would take this opportunity and run with it. I agree with both Mr. Barnard and Mr. Scott to keep it pushing. I would never let one tough call jade me. Honestly, I found here reaction to my call hilarious. I know that I will find the right agent...and I must because my phone is ringing off the hook with folks wanting to sell.
I am a firm believer in long term relationships. If she does a good job for you and you feel it is worth it, then you might give it a try. Another route would be for you to offer her listings if/when you decide to sell something. I have an awesome agent and she discounted services for me when we first talked...after I asked her for a discount. I could not be more happy with her. She knows that if I am going to buy a listed property it will be through her. She just brought a tenant to me that wants a long term lease. She stated she can only do a one year with me, but that I can do a two year with her if I desire because I write my own leases. I just told her today that if the new tenant she has brought brings funds that I am going to give her an additional $200 as a thank you for a spectacular job. So, my advice would be: give her a chance to do a good job. If she does well for you, show her appreciation. They do work on commissions, so maybe you might offer to let her do some service that is commission oriented instead? I am new to BP, and a novice, but within the next few days I will be a "PRO" LOL....
Is she simply trying to put food on the table also. If she has a smart enough mind to try to charge you, she will probably put forward the extra effort your really wanting.
I used to do BPO's years ago.I completed thousands of them over the years.
A BPO is not a CMA. A BPO from a mill is much closer to a full blown appraisal these days.
If you are asking the agent to look up a few solds,actives,and expired's and print out a one page form from the MLS then that does not take much time.
If you are wanting an interior evaluation with repair estimates and making adjustments for variations in comps to arrive at a more accurate number doing as-is versus arv analysis then that is more like a BPO.
In that case the agent should be compensated.
I recently met a realtor whose familiar with investing and also an appraiser / photgrapher. Since I'm in the learning stage of estimating repairs and to gain more practice, I was thinking I could send her a video tour of the house and she analyze each repair and I pay her $200 per closing for her time. But for Mls access, I was thinking of giving her leads I can't use in exchange.