San Francisco, CA · Member since 2009 · 171 posts · 24 votes
Hello fellow investors,
I spoke with an RE agent here in Augusta, GA today. As listed agent for two REO's here I called to find out their status. She said they'd been sold and nothing in the inventory, all of Augusta, meets my criteria:
90 -120 DOM
3/2 SFR
We didn't even get to price, she said nothing held in inventory that long. I believed every word have personal knowledge of new constructions in my neighborhood with over 365 DOM. Also, there's an REO right down the street, been there since early October.
I ended by saying "you liar if you find any that meet my criteria, give me a call. I will have a list of potential buyers that would be interested. It could be quite beneficial for you."
If an agent implies they don't want to be bothered at lower price points do you just move on? How do they fit into your networking goals?
... Offer to sign an exclusive buyers agent agreement and the agent will feel safe in sending you info about other agent's listings. ...
IMO, as an investor, you should NEVER sign an EXCLUSIVE buyers agent agreement. You will never be able to work with any other agent after that without having to get that "exclusive" agent paid too.
And if that "exclusive" agent stinks, then you are stuck with them. JUST SAY NO to any agent presenting one of these exclusive buyers agent agreements. And tell them you are already working with other agents as the explanation for why you can't / won't sign one.
BTW - many buyers agents will try to use that type of agreement, so be careful...
In my experience, since agents get a very low flat fee on REOs that sell low, they are not motivated to work with you in a market that is hot. Especially when they need to split that low fee with another agent.I was lucky enough to establish my relationship with my agent at the time when no one was buying properties. (September 2008)... I think, it paid off for him. Although he doesn't make much money from each transaction, he gets it in volume, since I bring quite a few buyers...
If your locality splits REO listing fees - go with listing agents. Mine doesn't. The listing agents gets paid the same no matter if he finds me or another agent does. In the second scenario, a buyer's agent does great.
It would most definitely be in your best interests as a buyer to find a good buyers agent to look out for your own best interests. Perferably a newer more aggresive agent that is going to give you more personal attention.
Because you have not established a relationship with the agent yet, she might only look at her own listings for properties that fit your criteria.
As of today, you are a customer and not a client. Offer to sign an exclusive buyers agent agreement and the agent will feel safe in sending you info about other agent's listings. There is a world of difference between a client and a customer.
Once you have become a client and shown that when you put a property under contract that you will close, then the relationship will be stronger, the level of trust much stronger, etc. Put one under contract and do not close and the relationship may be over.
Agents hear so many people claim this and that and not follow through. Until you prove yourself as the real deal, an actual make an offer, close the deal and put money in the agent's pocket client...well...sadly the agent may not believe you through no fault of your own.
... Offer to sign an exclusive buyers agent agreement and the agent will feel safe in sending you info about other agent's listings. ...
IMO, as an investor, you should NEVER sign an EXCLUSIVE buyers agent agreement. You will never be able to work with any other agent after that without having to get that "exclusive" agent paid too.
And if that "exclusive" agent stinks, then you are stuck with them. JUST SAY NO to any agent presenting one of these exclusive buyers agent agreements. And tell them you are already working with other agents as the explanation for why you can't / won't sign one.
BTW - many buyers agents will try to use that type of agreement, so be careful...
BTW - many buyers agents will try to use that type of agreement, so be careful...
Again, either develop a relationship by hiring the agent as your buyers agent or accept the agents may only send you their listings since you did not hire them as a buyers agent.
Do not be upset if the agent only tells you about their listings and not the many many other listings from other companies, or even other agents within their own company.
This business is about developing relationships. For an agent or investor that may mean signed paperwork at first, until they know they can trust you to not cut them out of the deal.
I don't want to sign any doc's at this point because I'd only be scouting out properties to move along to other investors. Not sure if I'd be wholesaling, just creating very hot leads for others while the market trends are being learned on my end.
I don't plan on buying until Q1 of 2011. It is an interesting means to screen agents and their overall disposition with callers to listings. If someone would be overall rude with a "potential client," per Mark's comment, and drive off those relationships I wouldn't be interested.
Eddie, how did you go about forming that relationship? Calls? Direct Mail? Coffee meetup?
David,
The agent I've been working with was referred to me by my PM. When I first came to Birmingham, AL I wasn't looking for an agent but rather a PM who can legally give me info an agent cannot.
Don't expect any agent (Especially if you deal with REOs or HUD) to do the legs work for you. I never relied on my agent to find me good properties. If I did, I would have starved to death. Also, buyer's agent is good if you deal with various properties that are represented by various listing agents.
Do not rely on the assumption that "Buyer's agent represent the buyer and therefor he/she has the buyer's interest at heart" The buyer's agent has one interest - the Buyer's agent's interest!
He/she will always (Or in most cases) will push you for the property with the higher price tag rather for the one with the best deal. They work for commission, remember?
Great insight on using the parameters of not what information is only known but who can actually share that information.
It's true that self-interest directs the behavior of most in the business. Once contacts see wonderous capital, so much wonderful capital there's a value in the relationship, all of your files suddenly become expedited.