So I had a local agent, a young one that has not seen a downturn in the market, reach out to me and ask me what I was looking for in a house. I have been approved by my mortgage person for up to a certain amount, and I told her. She then said she wanted for me to be "exclusive" with only her. She would be my "buyers agent". I told her there were 11,000 realtors in the NE FL area and I am loyal to the deals they bring me. I am not loyal to the agent, cause anyone can setup an MLS Search (MOST LAZY AGENTS DO THIS) and think this is the *VALUE* an investor or SFH buyer needs in this market. I was married to a Realtor for 14 years, so I know what to expect and there is way more to adding value than just an MLS search. I explained that since ours was a new relationship, I don't really know what "value" she will bring me, I suggested she bring me some deals first before I look to give her my business. Don't fall into the trap of "being exclusive" with only 1 agent. Instead tell the agent, I will be "exclusive with you and the DEALS you bring me". After all, what good is a sales person if they cannot bring you a deal? Many of these Realtors NEED to go through a downturn to appreciate having "a bird in the hand, versus two in the bushes". So don't settle on agents asking for exclusivity. Have them bring you deals to warrant giving them more and more of your business.

Realtor Exclusivity - Are you kidding me?

Real Estate Broker · Jacksonville FL & Middletown, CT · Member since 2008 · 1k+ posts · 632 votes

5y

This attitude is exactly why most agents dislike working with investors, and why this agent wont work with you without a commitment. Guess what - no one pays us to dig up off market deals, or write multiple low offers, or do a ton of CMAs or research/show endless properties. We get paid by closing deals for our contracted clients. Hence why you will not find any productive, experienced agent (or especially one who understands what investors want) to work for you, for free, with zero commitment. Their time is too valuable to waste on prospects who wont commit.

15 Reply

Ronald Allen Barney

Real Estate Agent · Tampa, FL · Member since 2020 · 411 posts · 373 votes

5y

The value an investor needs in the market is deal-finding. If you are fantastic at finding your own deals, well there you are, you're set. If you can find more deals than you have capital to invest in you can sell those leads to other investors, or wholesale. Power to you, young Jedi.

MLS searching is indeed basic level and can be a product of laziness or just not wanting to invest time in a situation experience has told the agent is a huge longshot for any hope of commission. That's the mainstream.

I my case I take MLS data for sales listings and rental data, dump them out into a CSV file, load the CSV files into a database, do some data cleanup (because data quality in the MLS is not great), and then run what I call the "magic query": on one side of the match I take an average rental price for a given subdivision, a given bedrooms and bathrooms, and if the subdivision is "metes & bounds" I pull the average from MLS-wide (can require some spot checking in those cases). I then match that data by subdivision with the subdivisions for houses for sale, and then let the query crunch the numbers, rent to sale price ("1% rule"), default estimate of expenses, default estimate of rehab driven by year built, a typical mortgage amortization, and 20% down cash on cash return. That query can be tweaked for other scenarios like 5% conventional or 3.5% FHA, cash deals, hard money combo, etc. The resulting list I consider to be intellectual property. It's on offer for free for contracted clients or those I have done business with in the past. For people who want free info, go fish. Hold up a sign saying "will not work for deals" and stand by the road intersection.

6 Reply

Nick MacklinPro Member

Real Estate Agent · Oak Harbor, WA · Member since 2016 · 129 posts · 38 votes

5y

Although I would not have worded the initial post in such a way I can understand your sentiment. If an investor wants to scale there is no need to be exclusive with an agent. And an agent shouldn't expect that from investors.

i work with many agents in markets I'm not local to and we all have an understanding that I go with the agents that first bring me the deal. Integrity should be a part of everyone's business and if it's not then both parties will see that quickly and can stop working together.

In short, I see both sides but there is a way to create a symbiotic relationship with many agents as long as all parties have integrity.

Good luck on the hunt and may the rest of the journey be a prosperous one!

1 Reply

Stephen Brown

Real Estate Broker · Huntsville, AL · Member since 2019 · 1k+ posts · 872 votes

5y

No reason to be exclusive to an agent when you're trying to scale HOWEVER I think it'd be beneficial to both parties that to feed the agent with some deals when you can because that's their income... and their incentive to find you those deals.

1 Reply

Trevor Andersen

Flipper/Rehabber · Jacksonville, FL · Member since 2017 · 8 posts · 10 votes

5y

@Jack Bobeck

I had this same thing happen to me last year when I was buying my first house to live in. Was working with an agent, signed some paperwork that I was too rushed or too dumb to understand, ended up finding another agent on BP that I wanted to work with but he wouldn't work with me once he found out I had already signed the paper work with another agent (which was the right thing to do obviously). The agent I worked with found me a good place to live, but was not great to work with personally.

I'm still fairly new to this but it makes sense why there are niche specific Agents. It is a special skill set, and probably patience, to work with investors rather than working purely residential deals.

1 Reply

Cody Lewis

Investor · Charleston, SC · Member since 2021 · 263 posts · 122 votes

5y

From afar, I can see both sides of the fence. Maybe come back with an offer to build a relationship rather than sign any agreement on exclusivity. I value good relationships over most things in life. I will work with people I have great relationships with even if it's a slightly higher cost to me as I know what I'm getting and that it will likely be made up on another deal we work together.

0 Reply

Jon Thompson

Flipper/Rehabber · Nowheresville, NY · Member since 2015 · 31 posts · 20 votes

5y

It's tough. My last two buys were off market. 1 I called on a vacant property and got agreement to purchase it. 2 was fsbo on Craigslist. Neither could I logically bring the agent I've been trying to use. I sell my properties fsbo through a flat fee agency, so I can't get him paid there either. I call him to represent me on auction buys and anything that pops up on mls, but I see both sides. He's got a family to feed too. I at least pitch him a couple hundred dollars in gift cards for restaurants he likes at Christmas time for now. If things grow to where I'm aiming I hope to get him some solid paydays in the future on both ends

0 Reply

Jack Bobeck

OP

Rental Property Investor · Jacksonville, FL · Member since 2008 · 784 posts · 528 votes

5y

@Cody Lewis That is the problem - This realtor wanted a signed agreement in exchange for a "relationship". I don't sign relationships for 3% of my wealth. You have to EARN a relationship. You bring me deals, I do deals with you. You bring me opportunities and SHOW me you are worth it, I can sign the paper, but NOT BEFORE YOU SHOW ME YOUR VALUE.

@Minna Reid This is exactly the short-sightedness that many agents have when working with "people", its either my way or the highway. Bring us deals, options, its sales 101 you don't get a guaranteed 3% on a deal just because you have a license and can breathe in a mirror. You are a professional, act like one, if you have an investor, sit them down and explain to them what you expect from them and they can expect from you. Its all in how you present yourself to your "prospective clients", but no investor, no client is going to work with an unproven agent who says "sign my paperwork or find someone else".

@Ronald Allen Barney - I used to be married to a Realtor, I can pull MLS data, scrub it and do exactly what you describe, on my own. But that is where some of the "realtor" value comes into play. I'm not a Realtor, so I don't have access to that MLS data, but there are 11,000 in my area, so chances are good someone will want to work with me, in exchange for the "homes" data in an area.

@Jon Thompson Its sales, you bring me a deal, I will go with you on the deal. If I find the deal, I can choose to use you or not, why would I pay someone 3% when I did all the leg work? Bring me deals to EARN your 3%, too many agents feel like they are entitled to a payment for you to be in real estate.

@Nick Macklin - Well said - Bring me the deal, I can work with you at that time.

2 Reply

Minna Reid

Real Estate Broker · Jacksonville FL & Middletown, CT · Member since 2008 · 1k+ posts · 632 votes

5y

@Jack Bobeck But wait....aren't YOU the one here complaining you can't find any realtor to work with you??? LOL Seems I'm not the one having a problem - you are. Change your attitude and watch the Realtors treat you differently. Good luck!

0 Reply

Joe SplitrockPro Member

Moderator

Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes

5y

@Jack Bobeck why would a real estate agent bring you deals, versus bringing them to a different client that has an exclusivity agreement? Without any agreement in place, nothing stops you from cutting her out of a deal. She is going to bring it to someone she trusts. You could argue you are loyal, but after telling her there are 11,000 other realtors just like her, she probably doesn't feel special.

I totally get the point you are trying to make. You don't know her or how she would even perform. It is like someone asking you to get married on the first date. All I am saying is don't expect loyalty from people who you don't give loyalty to.

I know you said these agents need to experience a down turn, but I think exclusivity is more important in a hot market and less important in a down turn. Deals move fast and relationships are more important in a hot market. Exclusivity has value, but she may not be the right person.

It is like going fishing when the fish aren't biting. You could do it alone, but if you have a good guide, you are more likely to catch fish. In a down turn, it is like shooting fish in a barrel.

3 Reply

Steve K.

Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes

5y

@Jack Bobeck If there are 11,000 agents in your market, there are probably ten times as many buyers, and plenty of them are paying cash and are also willing to sign an exclusive.

0 Reply

Theresa HarrisPro Member

Member since 2019 · 15k+ posts · 11k+ votes

5y

If you are using multiple agents, which is fine, don't expect them to give you the best deals. Working closely with one agent means that agent will often give you pocket listings as they hit the market or before. I got two of my rentals this way (one as he signed the listing with the seller and the other when the seller failed to close at the last minute).

0 Reply

Jack Bobeck

OP

Rental Property Investor · Jacksonville, FL · Member since 2008 · 784 posts · 528 votes

5y

@Joe Splitrock All good points, I like the analogies too. But hey, the bottom line here is its sales 101. Our first meeting should not be "Hey I want to be your agent, but only if you sign my "exclusivity agreement"". We have never met, so the first thing out of her mouth, I want to be exclusive with you. Kinda feels like we're moving past the "dating" phase and right into marriage. Thanks, but no thanks. Plenty of other fish in the sea who can work differently.....my point was don't sign anything exclusive until they prove their worth. You don't do that the first date with a gun to your prosepect's head, sign or I'm walking, lol.

@Steve K. I'd welcome 10x the buyers, because 1) they will get burned out and 2) they will say nasty things about the local market. I'd welcome a huge crush of buyers. Some are paying cash, but mortgages are still flying off the shelf, so its all about the deals and now some flippers have bought junk, tried to paint them with lipstick and are dropping their shorts to get stuff sold. So the market is turning a bit in Jax.

@Minna Reid I'd expect no less from a Realtor, lol

@Theresa Harris Thanks, the point of my post that you don't sign an "exclusivity agreement" in any market, hot or cold. Realtors work with people who do deals and its how Realtors make money. Good luck with rentals, been there, done that, no thanks with the new government in charge of your rent checks.

0 Reply

Alexander Szikla

Real Estate Agent · New York City · Member since 2020 · 818 posts · 639 votes

5y

Agreed 100%. As an investor, I scoff at agents who try and push exclusives.

As an agent, I never make buyers sign exclusives.

0 Reply

David Girdusky

Rental Property Investor · Queens, NY · Member since 2021 · 17 posts · 6 votes

5y

I'm just starting out in this investor world, but I have had 2 conversations with agents.. one implied that exclusivity was an industry standard and sort of implied I should have known that and that is the way is has to be. This agent sent me about 5 listings that were all off the mark from what I was really looking for, and what I described in detail to her. The second agent specifically said he did not need nor want exclusivity, because he was confident that he would bring me deal that I would really want. He was much more confident in his abilities and spoke in depth about his track record. His willingness to share his professional history would have been enough to convince me to work with him, but he wasn't cocky or demanding. Bottom line, I feel if they are really good at their job, the should be treated with the utmost respect and rewarded for good work, but exclusivity shouldn't be required or demanded. Just my 2 cents as a newbie.

1 Reply

Patrick Britton

Ann Arbor, MI · Member since 2014 · 1k+ posts · 997 votes

5y

@Jack Bobeck i cannot tell you the number of times something similar has happened to me. I love giving new professionals a chance to shine, but most are not interesting in working for it. And unfortunately, most agents are pretty lazy as well as inept.

1 Reply

Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

5y

Originally posted by @Joe Splitrock:

@Jack Bobeck why would a real estate agent bring you deals, versus bringing them to a different client that has an exclusivity agreement? Without any agreement in place, nothing stops you from cutting her out of a deal. She is going to bring it to someone she trusts. You could argue you are loyal, but after telling her there are 11,000 other realtors just like her, she probably doesn't feel special.

I totally get the point you are trying to make. You don't know her or how she would even perform. It is like someone asking you to get married on the first date. All I am saying is don't expect loyalty from people who you don't give loyalty to.

I know you said these agents need to experience a down turn, but I think exclusivity is more important in a hot market and less important in a down turn. Deals move fast and relationships are more important in a hot market. Exclusivity has value, but she may not be the right person.

It is like going fishing when the fish aren't biting. You could do it alone, but if you have a good guide, you are more likely to catch fish. In a down turn, it is like shooting fish in a barrel.

I always 100% of the time pay for a guide when I go fishing .. unless its to the coast of Oregon and or Rivers I know very well.. Nothing like going to Montana spend all that money for the trip and cant match the hatch .. when a guide will put you on fish constantly.

As for agents these are personal choices for buyers and agents.. I will tell you though a very good investor agent is hard to find and hard to crack their code they dont need anyone generally speaking they have their go to buyers that are known quantities and you earn that by doing volume being easy to work with and having cash to close.. this is how I enter a market .. If your just some one off BP going to set up my dream team in some city and hope to buy 2 properties and build my portfolio . Then I think buyer brokers agreements are fine.. or if your looking for specialty properties.. this is quite common in the commercial space I have been asked to sign them.. For me though I would not do it as I have to big of a search area and to large of a rolodex of agents I know that are great to work with.

Same for cracking the wholesaler code in a lot of areas.. they are going to go to their biggest and easiest all cash clients first then the newbies second who usually pay to much any how.

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Maurice George

Member since 2019 · 113 posts · 25 votes

4y

Originally posted by @Jack Bobeck:

@Cody Lewis That is the problem - This realtor wanted a signed agreement in exchange for a "relationship". I don't sign relationships for 3% of my wealth. You have to EARN a relationship. You bring me deals, I do deals with you. You bring me opportunities and SHOW me you are worth it, I can sign the paper, but NOT BEFORE YOU SHOW ME YOUR VALUE.

@Minna Reid This is exactly the short-sightedness that many agents have when working with "people", its either my way or the highway. Bring us deals, options, its sales 101 you don't get a guaranteed 3% on a deal just because you have a license and can breathe in a mirror. You are a professional, act like one, if you have an investor, sit them down and explain to them what you expect from them and they can expect from you. Its all in how you present yourself to your "prospective clients", but no investor, no client is going to work with an unproven agent who says "sign my paperwork or find someone else".

@Ronald Allen Barney - I used to be married to a Realtor, I can pull MLS data, scrub it and do exactly what you describe, on my own. But that is where some of the "realtor" value comes into play. I'm not a Realtor, so I don't have access to that MLS data, but there are 11,000 in my area, so chances are good someone will want to work with me, in exchange for the "homes" data in an area.

@Jon Thompson Its sales, you bring me a deal, I will go with you on the deal. If I find the deal, I can choose to use you or not, why would I pay someone 3% when I did all the leg work? Bring me deals to EARN your 3%, too many agents feel like they are entitled to a payment for you to be in real estate.

@Nick Macklin - Well said - Bring me the deal, I can work with you at that time.

Jack, I guess that agent has her concerns as well. If she brings you a "fair" deal (just slightly below than on market ones), would you gonna buy it? No. You probably wanna pass and she wasted her time Or she brings you a fantastic lead but you need to negotiate with five lien holders. Would you gonna do it? You probably not.

There is nothing wrong to "Bring deal to me first", but she does not know you are kind of buyer will buy.

0 Reply

Maurice George

Member since 2019 · 113 posts · 25 votes

4y

Originally posted by @Jack Bobeck:

@Cody Lewis That is the problem - This realtor wanted a signed agreement in exchange for a "relationship". I don't sign relationships for 3% of my wealth. You have to EARN a relationship. You bring me deals, I do deals with you. You bring me opportunities and SHOW me you are worth it, I can sign the paper, but NOT BEFORE YOU SHOW ME YOUR VALUE.

@Minna Reid This is exactly the short-sightedness that many agents have when working with "people", its either my way or the highway. Bring us deals, options, its sales 101 you don't get a guaranteed 3% on a deal just because you have a license and can breathe in a mirror. You are a professional, act like one, if you have an investor, sit them down and explain to them what you expect from them and they can expect from you. Its all in how you present yourself to your "prospective clients", but no investor, no client is going to work with an unproven agent who says "sign my paperwork or find someone else".

@Ronald Allen Barney - I used to be married to a Realtor, I can pull MLS data, scrub it and do exactly what you describe, on my own. But that is where some of the "realtor" value comes into play. I'm not a Realtor, so I don't have access to that MLS data, but there are 11,000 in my area, so chances are good someone will want to work with me, in exchange for the "homes" data in an area.

@Jon Thompson Its sales, you bring me a deal, I will go with you on the deal. If I find the deal, I can choose to use you or not, why would I pay someone 3% when I did all the leg work? Bring me deals to EARN your 3%, too many agents feel like they are entitled to a payment for you to be in real estate.

@Nick Macklin - Well said - Bring me the deal, I can work with you at that time.

By the way Jack, based on my gut feeling of your standard of "deal", I bet you I will want $50K wholesale fee for a 300K property.

0 Reply

Jack Bobeck

OP

Rental Property Investor · Jacksonville, FL · Member since 2008 · 784 posts · 528 votes

4y

@Maurice George This is sales 101, if her "gut" tells her I'm a player in the wholelsale world, she should move on. If I "VALUE" her skills and ability to get a deal done, I might use her, but I've yet to have a Realtor give me references or explain to me how they add Value. Most just shove the "EXCLUSIVITY" agreement in my face and say "sign it".

In the end I bought a new buy fix and flip with a friend who is in the real estate business. I don't buy from strangers and I don't work with inexperience. Agents are salespeople, do a better job of selling and I think most investors would work with them. Too many just shove the exclusivity agreement in their face without JUSTIFYING their means.

0 Reply

Jack Bobeck

OP

Rental Property Investor · Jacksonville, FL · Member since 2008 · 784 posts · 528 votes

4y

@Maurice George - You need to read more of my posts to re-align your gut. lol

0 Reply

Maurice George

Member since 2019 · 113 posts · 25 votes

4y

Originally posted by @Jack Bobeck:

@Maurice George - You need to read more of my posts to re-align your gut. lol

You are obviously a screwed investor. You want to buy something in steal like 40% ARV for a house needs almost no work. This kind of deal will only come from experienced wholesalers not brand new agents. A new agent with no experience wants you to sign "exclusive". You know it will not work. Rather than politely decline her, you are instead "bxxing" on Biggerpockets.

0 Reply

Corby GoadeBusiness Member

Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes

4y

It's funny- this is a two way street. I don't require my clients to be "exclusive" with me (by the way, a realtor is required to have you sign a rep agreement with them at some point or they cannot get paid). If and when the time comes for my customers to sign an agreement with me, mine have no teeth- no penalties, no fees if you want to terminate. I want clients who trust me and WANT to work with me.

That being said, the people who are constantly shopping around and don't treat me like a valuable partner don't get the good deals, and that's true for most realtors. I dig up LOTS of solid off market deals for my clients, but those go directly to the clients who are reliable and treat me like a partner rather than a personal assistant.

2 Reply

Mike Luman

Realtor · Jacksonville, FL · Member since 2020 · 3 posts · 1 vote

4y

Adding value as an agent is someone who will go out of their way to show you how they add value. Anyone can ask for business. I regularly do this with all my potential investors. I just go to work for them as long as we are both on the same page. Sometimes it sticks and sometimes it doesn't. Having a solid network of other agents and off-market opportunities is also key.

At the end of the day, both sides should give each other a chance. No, I don't ask anyone to do anything for me, I just go to work for my clients.

0 Reply

Realtor Exclusivity - Are you kidding me?

Realtor Exclusivity - Are you kidding me?

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