What is your opinion on buyers agents?
I live in New Zealand in a city with very expensive housing, so I have started to invest out of town in a cheaper city.
I have a couple of doors and want to acquire more but am finding it very hard to find deals.
I have been talking to a buyers agent in the city I'm looking in, and it seems like it could be a real good way of being able to thoroughly look into a market that I don't know as well as my own. They seem to have plenty of connections to both on and off market deals.
Is this just another name for a turnkey? Everyone talks about having a great agent on your team, especially when buying long distance, but do they mean buyers agent? Ie, the buyer paying the agent?
They charge approximately 4.5% per purchase, which isn't huge, but isn't insignificant. Then again, if they find deals that I couldn't and they are more than 4.5% cheaper, then it must be worth it right?
What is the general consensus here?
Most Popular Reply
I'd reach out and interview several buyers agents and see who has a track record of bringing great opportunities to their clients. In my experience as an agent, and also an investor, only about 5% of the agents are creative, resourceful and determined to find their investor clients solid performing deals. How an agent gets compensated is negotiable. You obviously want to build a solid, long term relationship and reward good behavior. If you show commitment, resolve and stay true to your word, a great agent will bring you positive opportunities. If your flipping or even buying and holding, consider bringing in the agent that finds you deals as an equity partner. Thinking outside the box is important to successful investing.