A knowledgeable, hard working realtor is a key component of a successful investing team. Of course we want our realtor to be motivated, responsive, and able to take action quickly too. Sending you comps when you ask, showing properties in a timely fashion, etc. That what I consider the basics and bare minimum. What I want to know about are things above and beyond these basics.
We are still new at this, working on our first deal so I an genuinely curious about this.
What are YOUR essential criteria for a realtor you want to work with?
Does the REALTOR send you deals? Hand picked, above and beyond a standard auto-email MLS search? Analyze them for you based on your criteria?
What things "should" a realtor be doing for you as an investor and what is going over and above?
I don't really expect to get hand picked deals. I like doing my own searching, but I would like my Agent to reply in a timely manner, even if it's just a "will get back to you on this". Waiting too long for comps or advice can cost you money. An Agent who is willing to see properties for you & send pics & comps quickly is a huge asset.
@Brian Dickerson - A realtor should get to know you and figure out what you are looking for. They should then send you qualified leads consistently. He/she should be extremely responsive, within a 1-2 hour response time during regular business hours and 8-12 hour response time on the weekends.
He/she should be able to tell you if a property is valued appropriately, what it can potentially rent for, etc. Also, be sure that the agent is acting in YOUR best interest. If there's a property you really don't like and he's adamant on convincing you otherwise, then pick a new agent.
So the "sending qualified leads constantly" part is mostly what had me write this post. What does that mean to you?
I heard of someone who had a realtor that was hand picking and basically analyzing deals for the investor. To me that sounds awesome but way above & beyond what I've yet to experience with a realtor.
This is a great thread and I'm hoping others will chime in as I have recently become licensed in MD to help others acquire real estate, and I want to be the best I can be for my clients.
From my own experience, I've found that reactivity is key. In our market (AA county), deals are done without even a preliminary visit to the property within hours of the listing being "public". It's very competitive and you need to be ready to move FAST!
When I bought my rental last year, I relied on an agent friend who was very responsive and available, but she wasn't that knowledgeable about investing. And I was fine with that because I had done my research and was doing the analyzing myself.
My guess is that it's difficult to have it all. And that's where I want to make the difference and become a trusted resource for either investment or residential properties in the greater Annapolis area (Severna Park, Davidsonville, Arnold, Edgewater, etc.). I should be affiliated with a broker by the end of next week - and I can't wait to get started!
Occasionally, my realtor sends me hand picked deals, some of them off market. I think that's going above and beyond, but I certainly appreciate it. My expectations of a realtor are to be reasonably available, give me expert and professional advice on offers, properties and negotiations, BUT, submit any offer I come up with, even when we disagree. I appreciate when my realtor says " I think your offer is not the best because of A, B and C, but let's submit it and see what the seller thinks."
I've worked with many realtors who told me my offers were bad, embarrassing, insulting, whatever, and insisted on changing the terms that I wanted, but I only worked with those realtors one time.
There needs to be balance and as a new agent you will learn this. There are people that want to buy today and are capable of buying today. Those are the ones you do some (if not all) analysis for. Send them the MLS auto search but also send them a note that says - I really think you need to look at property A and C. Here are the comps..... cap rates are ....... Great area...... etc. DO NOT just send the auto search. I have an agent that does this, took some days to get comps for one I mentioned and then the comps did not even have income / expenses on 2 out of the 3. Cap on the property was 8 (but rents could be raised of course) and the comp has a 20 cap rate. Not a lot of feedback as to location (good / bad) etc.
Then you will have the people who are not ready to buy today. You will have to limit how much work you are doing for them. I did have my license and showed probably 10 properties to a client - she thought I was paid employee and the price point started in the 400K range and the last one was 70k (she was supposed to receive a settlement). I had to say when you have the money we can start again. Even a regular home buyer needs to get their finances / preapproval in place. Counsel those - hold and investor education seminar at your office for new investors.
Updated about 1 year ago
You also need to understand their finances to a degree. I have one more deal in me and then I need to save the cash for the next one so the fact that all I get is the MLS does not really bother me except that I do expect quality comps on properties I flag. I may not invest in that area so I'm worth some time but not a lot of time if you know what I mean.
I have mentioned before that a new realtor with experience in investing is very valuable. But what counts as experience and if you can’t find one with experience how long will it take to train them to know exactly what you’re looking for? There’s a lot of pressure for an inexperienced agent. Also worth noting not only does your agent need to know your intentions of investing but those intentions need to be communicated with your lending and title officers. I’ve learned those experiences starting out here in Colorado Springs.
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