Does your realtor analyze and/or vet potential deals first?

Real Estate Deal Analysis & Advice
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Does your realtor analyze and/or vet potential deals first?

Brian Garrett
Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes

I'm currently networking with realtors in my area hoping to find a great deal to either BRRRR and/or Flip.

So far the realtors I've talked to are just sending me listings on the MLS without vetting the deals based on my criteria.

Sometimes they don't even provide market rent or recently sold comps for the subject properties.

How am I supposed to efficiently analyze a potential deal without having any of the pertinent information?

Are you guys taking the time to research every listing that gets sent to you to find the most recent comps, find out what similar properties are renting for in the area, etc? Or is your realtor digging into the listings to vet out the junk and then only sending you the properties they think could work for you? I'm trying to figure out if my expectations are too high or if the realtors that I've connected with are just lazy and trying to take the easy way out without having to put much time or effort into making deals happen.

For example last week I had a realtor send me 67 properties on the MLS. After looking at the first 2 I quickly realized they didn't meet the criteria I had sent them. I didn't even bother looking at the other 65 since I know the deals were not vetted at all.

So I guess what I'm asking is should a realtor be vetting out properties based on your criteria or is it typical for them to just send you everything that's out there and leave it up to you to do the due diligence, research and analysis yourself?

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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
9y

So you wanted them to pull sales and rental comps on all 67 of those properties? That is not a realistic expectation.

What is realistic is for you to look at those 67 properties, pick 2 or 3 of them out that you might think work, then ask for the comps on those 2 or 3 properties.

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  • Tom Parris
    Realtor · Tampa, FL · Member since 2016 · 340 posts · 248 votes
    9y

    Hi @Brian Garrett,

    Don't take offense to that Realtor who sent you 67 listings. They put as much as the criteria you gave them into the MLS and put you on an auto email. When I do this, I explain to them, this is the first list, and the purpose of this list is for you to comb through and select the ones you like based on aesthetic. That way I can comb through that same list and compare the ones you like, from the ones you don't and get a real feel. Everyday from then on, I do the same thing with the new properties that hit the market, then I take your equation and apply it to the deals that look like they could work. If they do, you get an email with my opinion and a pro forma attached.

    I agree with @Jeff Copeland. Pick one that you click with, and that really understands your needs. You're also going to cause a lawsuit between agents. Eg, two agents send you the same property, who is the procuring cause of that property? If you still don't care; people will disagree with me on this, but I'd be more willing to discount listing services when it's time to sell, because I know you're loyal to me and I know I'll get business from you later. 

    Find an agent with some gusto that will tell you what you can expect from the market they know. 95% of agents will say yes to get the potential of business, but know what you're asking is unrealistic for that market and it's a giant waste of everyone's time. Because, that agent is hoping a dream deal comes up and they present it to you, but that deal either never comes, or when it does, you will have so much competition, that you won't get it.

    In conclusion, if you're buying/selling multiple properties a year in that one market, it's fine to say that they can earn their 3%. However, after you break down how much of that 3% we actually get to keep, and after the hours put in, you'd chuckle at what that breaks down per hour of work. NAR says it takes 19 hours of work for a Realtor to close the deal, after it goes under contract. But, it could take 5 times that amount of work to get you the deal.

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  • Andrew Ashby
    Investor · Orlando, FL · Member since 2016 · 355 posts · 380 votes
    9y
    Brian Garrett , yes your expectations are absolutely too high. As an investor and a Realtor, my time is far too valuable to screen every single property for a newbie investor who has no confidence in their own judgement and will likely do nothing more than make a few lowball offers and never buy anything. I️ don’t mind pulling rental comps and all those things for a pre-approved buyer, but you have to realize that all the due diligence that either you or your realtor might do on the front end means absolutely nothing until the thing is under contract. Today’s real estate contracts give you so many exits it’s not even funny. There’s no sense in either you or your realtor putting a ton of sweat and headache into due diligence for something that will likely not even make it to contract. Be selective and be respectful of your own time and your Realtor’s time. Flaunt your pre-approval letter, go see a few properties, and develop confidence in your own judgement...until then most agents will keep you in the MLS auto-search purgatory until you prove yourself. I️ only bring real deals to people who will put their money where their mouth is and get the property under contract! And for goodness’ sake, find a REALTOR who owns investment properties themselves...not your wife’s aunt. *Mic drop*
    6Reply
  • Andrew Ashby
    Investor · Orlando, FL · Member since 2016 · 355 posts · 380 votes
    9y
    Brian Garrett , good luck with the multiple realtor strategy. You’ll get only the most desperate agents. As soon as somebody mentions other realtors, they’re blacklisted in my book.
    1Reply
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