What to consider or ask when picking an agent to work with?

Question

Looking for advice on talking to an agent. What to ask and how to pick an agent before working together.

Drew Sygit · Answer

95% + of agents only know how to work with owner-occupied transactions - which are emotion-based transactions.

They are clueless when it comes to investor analytical transactions.

Kerlous Tadres · Answer

I’d ask if they work with investors, know cash flow or BRRRR strategies, can run comps quickly, and what areas they see strong investor activity or growth. Be upfront about your goals, buy & hold, flip, or STR-so you're on the same page. The right agent should understand numbers, zoning, and which neighborhoods make sense for investing, and not just open doors.

Adam Bartomeo · Answer

The first questions should be around investing - do you own rentals? how many? have you done flips? how do you find your deal? After that it should be more around who they work with and their performance. How many sales per year? Do they work with investors? Do they sell retail or off market?

Charles Clark · Answer

@Dylan L VillanoGreat question! When talking to an agent, ask about their experience, the areas they specialize in, and how they communicate with clients. Also, ask for recent client references. Choose someone who is responsive, understands your goals, and has strong local market knowledge. Trust and clear communication are key!

James Hamling · Answer

Agents galore are going to say whatever they think will get them the business and the resulting $. And just because there good at pitching, does not mean there good at getting results, more or less the specific results your looking for.

I hate the notion that asking if an agent has or has done investments themselves means anything, because it really doesn't. I know agents who have investments themself and they were sup-par buys, that they very honestly suck at managing. Just because someone does something, it doesn't mean there any good at it.

My advice is pick your area. Next, connect with the circle of people who would be in-the-know but have little to no self-motive for the direction they give you. I'd contact title and escrow offices after finding who the top 3 are, that are independant and not owned by a real estate brokerage. I'd call, tell them the results I am looking for. I'm looking to buy a good investment property, in or around ___ area, in the budget range of ____. Who are the best 3 agents they'd call? These people see who does what day in and day out.

When I talk to the agent's, I'd cut through all the fluff BS and just tell them, I don't care about all the jazz that everyone does, I want to know what makes them different. I'd tell them the results i am looking to achieve, and then simply ask, why should I work with you vs everyone else.

The best agent is one who's 2/3+ levels beyond the level the person seeking an agent is at. You DONT want someone who's currently at that same level or just getting to the next, you want someone who has learned the things not one who's still learning themself.

I doubt this will be a popular insight, but it's honest, accurate, and meant to help.

If you want a great agent on buy side for residential investment real estate, there rare, it's the 2%, so expect to burn through a lot of dud's to find the stud.

Michael Smythe · Answer

@Dylan L Villano

Be careful asking for investor-friendly agents!

+95% of agents only have experience dealing with owner-occupied transactions - which are mostly EMOTIONAL decision based.

These agents will NOT find you “deals”, just pretty houses on the MLS☹

They are really just, “commission-friendly”, looking for a payday.

An investor wants an agent that sticks to logical numbers like ROI, Cash-on-Cash, etc.

You can differentiate between these different types of agents easily by asking them:

1) If they are RE investors themselves. 
--Many will say yes, so ask them for proof! They should be able to send you an address of a rental they own.

2) If they plan on sharing a BP Calculator sheet for each and every property they send you. 
--Many will state that's your job, but then what value are they truly offering as an "investor-friendly" agent?

The more questions and request for proof you ask, the better!

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Ken M. · Answer

First you look for one that won't get in the way. You are paying the fee, so your opinion counts.And equally important, you need an agent that actually picks up the phone. One that "will call you back" is the wrong one. Do you want someone trying to buy your property, to eventually, when it's convenient, get a "call back". If an agent says they don't work certain hours, take them seriously.

Be ferocious, hit them below the belt, ask for a list of properties THEY sold in the last 6 months. Get the addresses, see when it was listed and for how much and compare to what it sold for and how much. Look at Days on Market. (The "Our Team" term is BS. stuff for agents that can't sell.)

James Hamling · Answer

I suggest first sitting down and drafting your:

NEEDS, WANTS and EXPECTATIONS.

Writing them out, makes clarity with self on them.

It nauseates me when agent's market there "value" via expectation items they deliver. It's like an auto dealer promoting when they sell you a vehicle, it will come with tires on it, lol. That's not a perk, I expect it to have tires. Just like I'd expect an agent to communicate well, have market knowledge yada-yada.

There is some great agent's out there, it's just tough to cut through all the marketing "noise" to find the greats, I have all the empathy for a person struggling in that endeavor.

Joe Funari · Answer

@Dylan L Villano I am Realtor & fellow investor that works with other investors buying and selling. One of the reasons for my success is that I am currently investing in the local market I work in. Also, have an active network of lenders, insurance carriers, contractors, home inspectors, and property management company that I recommend to my clients. In short, make sure that if you decide to work with a Realtor make sure 1. They are an active investor 2. Willing to share their contacts that have helped them succeed as an investor. Also, make sure the Realtor has +5 years experience. You are in rarefied air with an agent that has lasted this long on the business. The attrition rate is very high for Realtors nationwide. Hope this helps you in your REI journey.

Dylan Villano · Answer

@Joe FunariThank you very much Joe. Those are all very important considerations

What to consider or ask when picking an agent to work with?

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