Do I need an agent to represent me?

Realtor · PHX AZ · Member since 2017 · 47 posts · 20 votes

Hello, a lot of information about running numbers on Multi family properties but when you find a listing that is obviously already represented by a broker. Should I find a local broker to represent me or deal directly with agent who has the listing?

1 Reply

126 views

Most Popular Reply

Andrew ValeriBusiness Member

Rental Property Investor · Attleboro, MA · Member since 2020 · 22 posts · 17 votes

Hey Michael,

"NEED" an agent?

Work with listing agent directly if you're not an agent?

I wouldn't reccomend this. They only truly represent the seller, not you.

However from my experience buying a 3 unit for my first deal - working with an experienced investor/agent who himself had 30+ doors in his portfolio was helpful.

I bought my triplex $75k under asking. I showed him the listing as it had been Back on Market 3 times with a days on market 100+ days. I understood we were likely looking at a motivated seller.
My agent asked the right questions to seller agent by finding out the right pain points and then did an effective job catering to the sellers ego that I likely wouldn't have been able to do since I was the "bad guy" coming in so far under asking. I gave them what they truly wanted which was to close and taking on their tenant issues.

Closing got pushed back 2 months because of an issue with the title.

I could have possibly navigated the closing process alone but I wouldn't have felt confident once we reached the snag with the title. I was happy to have an experienced agent to keep me level headed to keep me focused on bigger picture. If I backed out or didn't negotiate correctly with title issue and seller backed out at that point it would have been a huge mistake.

I work a full time job - and wouldn't have been available to deal with these headaches.

In my eyes you don't not hire a professional just because you think you can do the job if everything goes right. It's good to have someone with experience who knows what they are looking at to diagnose a problem/fix it before you know its there and before more damage is done.

Overall, I would suggest yes to an agent who is also an investor at least on your first deal. My agent is now one of main my mentors.

4 Reply

See this reply in the discussion

31 Replies

Jump to latestLatest

Sort by

Conner Olsen
Real Estate Agent · Austin, TX · Member since 2020 · 1k+ posts · 941 votes
4y
It's worth it to me to have an agent on the buy side unless you are extremely experienced and know what to look for (think 10+ years of experience with 30+ deals). The listing agent has no incentive to help you out and will lean towards the best interests of the seller.
3 Reply
Erik Browning
Lender · CO CA TX WA ID OR · Member since 2020 · 419 posts · 542 votes
4y
Yes and No... here's why
Yes - if you feel confident in moving forward with this on your own and you know how to correctly fill out a RPA as well as moving the deal forward so you don't miss your close of escrow, go right ahead.
No - You likely are not equipped with the skills to make the deal close on time and will leave things out that are essential to 1 - stay compliant with local and federal regulations, and 2 - there's a good chance you will fill out the required documentation incorrectly, which will make you fall out of escrow.
I recommend you trust the agent you hire - also, the seller's side pays their commission - not you. You have nothing to lose buy getting a good, solid agent.
2 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
4y
Heck no. If you need a broker, then you should not be doing the deal. Also, if it's listed it's not a deal,,,,,,, Good Luck
3 Reply
Andrew ValeriBusiness Member
Rental Property Investor · Attleboro, MA · Member since 2020 · 22 posts · 17 votes
4y
Hey Michael,

"NEED" an agent?
No
Work with listing agent directly if you're not an agent?
I wouldn't reccomend this. They only truly represent the seller, not you.

However from my experience buying a 3 unit for my first deal - working with an experienced investor/agent who himself had 30+ doors in his portfolio was helpful.

I bought my triplex $75k under asking. I showed him the listing as it had been Back on Market 3 times with a days on market 100+ days. I understood we were likely looking at a motivated seller.
My agent asked the right questions to seller agent by finding out the right pain points and then did an effective job catering to the sellers ego that I likely wouldn't have been able to do since I was the "bad guy" coming in so far under asking. I gave them what they truly wanted which was to close and taking on their tenant issues.
Closing got pushed back 2 months because of an issue with the title.
I could have possibly navigated the closing process alone but I wouldn't have felt confident once we reached the snag with the title. I was happy to have an experienced agent to keep me level headed to keep me focused on bigger picture. If I backed out or didn't negotiate correctly with title issue and seller backed out at that point it would have been a huge mistake.
I work a full time job - and wouldn't have been available to deal with these headaches.
In my eyes you don't not hire a professional just because you think you can do the job if everything goes right. It's good to have someone with experience who knows what they are looking at to diagnose a problem/fix it before you know its there and before more damage is done.
Overall, I would suggest yes to an agent who is also an investor at least on your first deal. My agent is now one of main my mentors.
4 Reply
Andrew Garcia
Lender · Charlotte, NC · Member since 2022 · 739 posts · 410 votes
4y
Hi @Michael Mastantuono, finding an agent on the buy-side is almost always worth it.
Some very experienced investors use the listing agent with dual representation to win the deal but if you do not have a ton of experience, use a local broker.
Hope this helps! Let me know if I can be of any assistance.
1 Reply
Ezgi Janicek
Real Estate Agent · Phoenix, AZ · Member since 2021 · 9 posts · 7 votes
4y
Quote from @Michael Mastantuono:

Hello, a lot of information about running numbers on Multi family properties but when you find a listing that is obviously already represented by a broker. Should I find a local broker to represent me or deal directly with agent who has the listing?

Hey Michael, Obviously with your background in RE valuations and appraisals, you have some knowledge with the process. As it was stated above, the listing agent has a fiduciary to the seller and dual representation is not that easy. I would recommend to hire an agent specialized in MF. And the buyer's agent commission is paid by the seller. (almost always)
0 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
4y
In my many years of experience doing about 500 deals in the Cleveland markets, I have found most realtors to be of no value. They All have the same line ' highest and best multiple offers " Really the property has been for sale for 4 months now all of a sudden multiple? I also found 99% of my deals off market, listed props are not where the deals are.
All the best
1 Reply
Scott TrenchPro Member
Rental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
4y
I think it's really important to have an agent who knows what they are doing representing you, at least on the first few properties. If you want to represent yourself, consider just getting your broker's license. It's a modest time commitment in the scheme of things, and will help you feel prepared to represent yourself.
If you aren't ready for that commitment, that says a lot and you should probably just hire an agent.
Podcast Guest on Show #223
4 Reply
Charles Renn
Real Estate Agent · Los Angeles, CA · Member since 2021 · 215 posts · 103 votes
4y
@Michael Mastantuono,
Lots of great feedback here already. If I can add anything it would be to get a good understanding of how real estate negotiations work as well as talking to a few local to the market you're interested in-agents. In some states, the listing agent cannot represent the buyer in my understanding. Even if you have a buyer agent represent you in your first couple of deals, it's best to ask them to walk you through the buying/negotiation process before jumping in. The last thing you want is the pressure to make last minute decisions during the escrow process. Hope this helps!
0 Reply
Spencer Gray
Syndication Expert and Investor · Indianapolis, IN · Member since 2016 · 591 posts · 808 votes
4y
If we're talking commercial multifamily, then absolutely not. It will only put you at a disadvantage compared to other buyers and you will be tipping your hand showing inexperience. You should be able to facilitate the transaction with your team and attorney.
2 Reply
Patrick DruryBusiness Member
Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
4y
@Michael Mastantuono
I would say find an agent that specializes in working with investors and owns rentals. Especially if the seller is using an agent. It's worth having someone experienced in your corner to help navigate the transaction vs wandering through and screwing the deal up.
[email protected]614-412-4565
Reafco-556 Reviews
View Page
1 Reply
Lucia Rushton
Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes
4y
Quote from @Michael Mastantuono:

Hello, a lot of information about running numbers on Multi family properties but when you find a listing that is obviously already represented by a broker. Should I find a local broker to represent me or deal directly with agent who has the listing?

how many doors?
0 Reply
Forrest Williams
Real Estate Agent · Chicagoland · Member since 2018 · 314 posts · 199 votes
4y
Like others here, I recommend finding an agent who also invests. It's worth it to have a second set of eyes on the property; they may recognize a problem you would have missed. They can help handle the paperwork, find you comps, private market listings, and many other small things. Also, it's good to know people in the business. Your agent may have some recommendations for contractors, landscapers, accountants, and lawyers.
0 Reply
Bjorn AhlbladPro Member
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
4y
I have bought and sold a number of properties and always get an agent or broker involved. I often use the same buyer's agent and pay her a percentage depending on the amount of work involved. She knows investment property and used to have a construction company. She is great with people. If the transaction can't afford a buyer's broker it is a dog and not a deal.
0 Reply
Luka Milicevic
Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
4y
@Michael Mastantuono
Yes, but you need to find the right agent.
The barrier to entry for RE agents is incredibly low, therefore there are a lot of agents out there that have absolutely no clue what they are doing and will do more harm on this deal than help.
You need to find an agent that is experienced and that has done deals themselves.
1 Reply
Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
4y
If it's listed, you may as well get one. Try and find a specialist for your purpose (CBR) and asset type (income property).

I've used a buyers agent exactly 2 times since 1998. I had to get one last time (#2 last Oct) to even see the property. WTH?

So I hired one of my tenants. The collusion among agents and the NAR forcing sellers to pay 5% whether the buyer has an agent or not is disgusting and a big reason I am giving the finger to RE in general now.
3 Reply
Nicholas MischPro Member
Investor · Broadview Hts, OH · Member since 2016 · 310 posts · 280 votes
4y
Quote from @Scott Trench:

I think it's really important to have an agent who knows what they are doing representing you, at least on the first few properties. If you want to represent yourself, consider just getting your broker's license. It's a modest time commitment in the scheme of things, and will help you feel prepared to represent yourself.
If you aren't ready for that commitment, that says a lot and you should probably just hire an agent.

Well said Scott!
1 Reply
Steve K.
Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
4y
@Michael Mastantuono as the saying goes… “If you have to ask, then yes you need an agent.” If it’s already listed then a buyer’s agent fee is already baked into the deal anyway, your representation is paid for and you might as well use it. Once you get to 500 deals then maybe forego representation but you can learn a lot from working with a great agent when getting started, and the seller pays the buyers agent anyway on listed properties.
2 Reply
Ronald Grams
Realtor · Bucks County, PA · Member since 2020 · 21 posts · 16 votes
4y
@Michael Mastantuono
Pennsylvania Real Estate Agent here. I work with a few investors and my bias is on the “Yes”.
You’d want an agent with investor experience as well as a hands on and detail oriented. Being able to negotiate a great price is cool and all, but also making sure the contract is solid is way more beneficial.
Contracts are full of loopholes (contingencies) a sellers agent is going to make sure those loopholes work best for their client and maybe not so great for you.
For example. Landlord is tired of terrible tenants. Decides to sell. Place sits for a month gets an offer at asking and he is happy.
Until he realizes rents have gone up a bit and the old tenant is already gone. Not only will a new tenant bring much more rent, but another tenant will not be renewing their lease. So two new tenants at current market value means the offer he accepted is not a good deal for him. He then spends the next 30 days while Title is being processed to get out of deal any way possible, including not submitting paperwork that’s needed.
Meanwhile buyers agent is making sure all deadlines are being met for paperwork, and vigilant about keeping everything moving forward to stay under contract. Closing day comes Buyer is Happy. Seller not so happy. Buyer agent has giant headache, but got the deal done and has happy buyer.
2 Reply
Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
4y
Quote from @Michael Mastantuono:

Hello, a lot of information about running numbers on Multi family properties but when you find a listing that is obviously already represented by a broker. Should I find a local broker to represent me or deal directly with agent who has the listing?

No. When I found a property that I like, I ask the seller agent to be my agent too and split the commision back to me. It has good and bad advantage though, if you willing to take.
0 Reply
Bjorn AhlbladPro Member
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
4y
My Buyer's agent is quite happy to find the address and deliver an unsolicited cash offer to the owner for a 10 plus unit in my area for 2.5 %. To me that is a great service. Has not worked yet but I will keep trying. I don't pay unless it is a hit.
0 Reply
John Warren
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
4y
@Michael Mastantuono there is a lot of information on this thread already, but the main thing to note is that if you are working with a commercial brokerage then you probably are expected to work directly with the listing agent. If something is on the MLS, then you can definitely bring your own agent. Most of the commercial shops have their distribution lists so they can sell deals in house. This isn't a bad thing, but it is a totally different experience than folks get working with an MLS agent.
If the deal is good, you will want to incentivize the listing agent to get the deal done. Taking 2-3% of the deal out of their pocket is not a good way to do so.
1 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
4y
If you are asking, then yes, you absolutely need an agent representing you.
2 Reply
Stephen Zygiel
Real Estate Agent · Tulsa, OK · Member since 2018 · 8 posts · 4 votes
4y
Quote from @John Warren:

@Michael Mastantuono there is a lot of information on this thread already, but the main thing to note is that if you are working with a commercial brokerage then you probably are expected to work directly with the listing agent. If something is on the MLS, then you can definitely bring your own agent. Most of the commercial shops have their distribution lists so they can sell deals in house. This isn't a bad thing, but it is a totally different experience than folks get working with an MLS agent.
If the deal is good, you will want to incentivize the listing agent to get the deal done. Taking 2-3% of the deal out of their pocket is not a good way to do so.

Illinois is a designated agency state. So, the fiduciary duty to act in the best interest of your client should be sufficient incentive to get the deal done.

@Michael Mastantuono , in a fiduciary state, an agent not working directly contracted with you owes you very little outside of not directly lying to you and informing you of material defects. If you lack experience or are concerned about the process, seek your own council.
1 Reply
David Dachtera
Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
4y
@Michael Mastantuono,
My thoughts are that while you don't usually need an agent to buy, and attorney familiar with the laws, etc. in the property's area is an absolute must.
My $0.02 ...
1 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.