As the U.S. real estate market continues to improve, home buyers are going to feel the pressure to act. At the same time, real estate investors will be motivated to buy more homes before interest rates and home prices go up even further. However, while there may be many attractive houses and property deals coming onto the market, even at can’t miss bargain prices, sometimes great real estate is hampered by terrible agents. What then? How can you navigate the poor agents and make your business more successful?
Finding, Picking and Vetting Real Estate Professionals
There are many good Realtors out there in the industry. They work tirelessly, and do far more for their clients than they’ll ever realize. They invest in their real estate education, marketing for their clients, and sometimes barely break even in their desire to go the extra mile. Then there are the truly great agents which are masters of their craft, know the industry inside and out, and preempt the slightest issues with expert intuition. They add value to everyone they connect with, and just make life a little better. You’ll want to give them your business, and referrals, even if they may cost a little more on the surface. But of course, they may be very few, and hard to sift out of the masses.
Then there are those who are not worth your time. It is a sad reality, but not every agent will be good for your business. Any variety of reasons may make them a bad fit for what you want to do. Some might just not be good at what they do. Some of the issues include:
- Agents that simply turn off interested home buyers
- Inefficient Realtors that can’t respond to inquiries in a timely manner
- Agents that don’t have experience or aren’t cut out for the business
- Agents that lack interest
- Agents that cant negotiate
- Poor service or relationships within the industry
- Agents who only work part time, are out of touch, or are too new and untrained
So how can home buyers, sellers and real estate investors navigate this maze, and get the real estate deals they really want? More importantly, how do they know they are working with the right agent?
Don’t Get Involved in Deals with Agents
In the past, we have seen many homeowners, home buyers, and real estate investors choose not to engage in any real estate transactions where agents are involved. They won’t list with them, buy through them, or entertain offers from them. In many cases, this may be a little short sighted and small minded. In others, individuals may truly find that they can find better deals and get to an attractive closing faster by going direct to buyers, sellers, or real estate wholesalers.
Don’t Go Straight to the Listing Agent
Many real estate investors and home buyers do themselves a great disservice by trying to get straight to the listing agent. More sophisticated and experienced property investors and buyers know that the listing agent is the agent of the seller and is often legally bound to operate in their best interests. Sometimes they operate in their own personal interests. Either way, it can leave the buyer unprotected, at a disadvantage, or it is hard to work out a deal through another agent after they already know your name. With this in mind, it can be wiser to use a buyers’ agent from the get go; especially as a new buyer or investor. Or at least protect yourself with a real estate attorney who can help in negotiations, review contracts, and help manage the transaction through to a successful real estate closing.
Due Diligence
Instead of just writing off real estate agents and other professionals, it might be smarter, and more profitable, to seek out several to build relationships with. This doesn’t just mean opening the Yellow Pages or hitting Zillow ads. Determine what qualities and characteristics are most important in a Realtor business partner, and set about shortlisting and interviewing them in order to make a great pick to give your business too. Some factors to measure may include; experience, trust and reliability, connections, willingness to negotiate rates, hunger and motivation, and more.
Get Your Own Real Estate License
Another alternative which many real estate investors have embraced is getting their own real estate license. It’s not cheap, or fast, and it can have its limitations and pitfalls, but it can offer access, new opportunities, and substantial discounts. It may not be right for everyone, but it is worth weighing the pros and cons from a realistic standpoint.
Summary
In conclusion, there are terrible, average, and awesome real estate agents out there. Decide if you can work with them, and if so, find the best. If not, understand how it can limit you, and weigh the choice of getting licensed yourself.
