Realtor is not making me happy
Grand Rapids, MI · Member since 2014 · 174 posts · 27 votes
Realtor is not making me happy
Most Popular Reply
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
12yHi Drew,
You are looking at it from making a big spread once you find the deal to make it worth your while.
If the offer isn't taken and the agent does the low ball offers over and over they will start getting shunned by their own peers for even getting a response. Back 3 to 5 years ago in frozen markets listing agents were willing to look at anything. Today many are telling the sellers to hold out for something else as the market is improving.
I don't blame you for wanting to find a deal. Sadly many of these agents hope that if they "show you the market" you will come around to a decent price and a closing will occur.
Honestly probate and getting a low price in the 80's is a lot more work for an agent with no money in it.
In the commercial space I get buyers looking for deals as well but the price is in the millions and up. I will scour to find the best property but I am making 5 to 6 figures a check.
I fault these residential agents for saying what the investor wants to here and then complaining later on when they have to perform. A broker/agent should be upfront. If someone comes to me with millions in the bank and says I want a 10 cap large building that is A class in and A area I will say you could have gotten an 8 to 9 or so 4 years ago but that ship has sailed.
Part of it really is the broker/agent if they are good and do it full time are out in the market reviewing properties and pricing EVERYDAY. I know my product and what it will sell for when it comes to triple net or multifamily. If an investor is realistic then I will work with them. If they are so far out there they are looking for a property that we call a "magical unicorn" in the business where it might pop up one in ten thousand properties and there are 50 offers on it that day it's a waste of my time.
As an investor myself I love helping clients as a commercial broker but I also have to make an effective business for myself. I can't do that chasing magical leprechauns.
I think you need to have with this agent a "coming to Jesus" as we call it in the business. You both sit down and say this is where we are at and this is what I want in the relationship. Can you deliver this or not?? If you are not both on the same page then you part ways. If you feel the agent isn't working hard enough to find you the deal and the agent feels you are unreasonable and looking for something that doesn't exist in the market then it won't work out.
I work hard for my clients trying to find the best commercial property. There is a difference between knowing you can find them the best asset if you scour all sources versus looking for something I know is not out there for the return and quality they want. One will happen if I work hard and the other will never happen and I will waste time. You said your other flips were from other markets. Maybe meet up with some other investors in the area at a meeting and you might learn the investors there are working on thinner spreads then where you were doing business before. Not all market work the same even when looking for deals.
Hope it helps from someone with both a broker and an investor perspective.
26 Replies
- 12yJ. MartinPro MemberRental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
@Drew Denham , I think @Joel Owens , @Jay Hinrichs , and others are right that you have to consider what commission they're getting out of it, and how much work they need to do. On the other hand, I have had to go through a handful of agents for various reasons (wouldn't use docusign/electronic offers, wouldn't send in offers too far low below list *even on occasion*, always too busy with others, etc.)
But eventually, I discovered exactly what I needed and wanted. Then clearly communicated that to my new prospects, and found someone I could work with. Now, I just go directly through the listing agent, since the market is so competitive where I'm at in the Bay Area. But I recommend you clearly lay out everything you need for potential agents, get their commitment on it, then bring it up if they are not meeting your expectations. And discuss whether or not it is realistic to meet your expectations. If you can't find something within a year, you're probably either too picky, or not willing to pay a market price, IMHO. I'd rather pay market today, than a 5% discount in a year when the market is up another 10-15%, but that's just me in my area..
Join the conversationCreate a free account to reply, vote on answers and follow this thread.