Investor’s Guide to Working With Real Estate Agents
To be honest, for most of my career as a private investor, I considered real estate agents an obstacle to success. Now, here I am advocating that you make them partners in your investment team. Why the change of heart?
Well, one day I woke up and realized that real estate agents are not only a fact of life, but the best way to achieve investment success simply because of their knowledge and important place in the real estate community.
Of course, an absolute requirement for investment success is to work with real estate agents who know what they’re doing; otherwise, you’re wasting your time as an investor (not to mention that of the buyers and sellers).
In this article, I’ll give you seven guidelines for choosing the best real estate agents to work with in any investment situation.
Guideline #1: Choose a Full-Time Professional Real Estate Agent Avoid part-time real estate agents out there wanting commissions. Most are either mediocrities or amateurs who check in when the market is hot and check out when it slows. A good way to weed these individuals out is by asking for their experience, qualifications, sales, etc. Then, go with the real estate agents who have a demonstrated record of excellence over time.
Guideline #2: Choose Specialists In an ideal world, you want a Real Estate Agent who specializes in your particular area of investment. So, if you specialize in, say, the single-family home market, seek out an agent who has a lot of experience and expertise in that area. Do the same for any market–multi-unit, commercial, retail, and/or the industrial sectors. By the way, don’t just accept a Real Estate Agent’s word that they’re an expert in a particular market. Ask for proof in terms of sales within your target market!
Guideline #3: Verify Real Estate Agent Credentials You can check with your state online database and other sources to make sure the agent is fully licensed and has no citations, disciplinary actions, etc. on his or her record. If a Real Estate Agent has ethics problems, you definitely don’t want them staining your reputation, even if it’s only by association.
Guideline #4: Ask For and Check References As with any business, the best proof of success lies in satisfied customers. So, ask the real estate agent for references from customers within your target market and geographical area. Contact those references to get a rounded picture of the real estate agent’s reputation and business practices. Naturally, you’ll want to develop a relationship with real estate agents with good to excellent reputations for honesty, fair dealing and patience. It’ll make the entire investment process a much smoother and more profitable one since you’ll be dealing with satisfied customers, not irate ones.
Guideline #5: Require Good Communication Skills Clear communication is the key to success in any investment deal. Seek out Real Estate Agents who listen well to you and everyone else and who keep you informed and up-to-date on all transactions. And, remember that clear communication is your responsibility as well. Make sure the Real Estate Agents you choose clearly understand your investment goals so they don’t waste time bringing properties to you that have little or nothing to do with those goals.
Guideline #6: Look For Real Estate Agents with Strong People and Negotiating Skills A real estate agent can have all the experience in the world, but if he or she doesn’t relate well to people, they’re no help to your investment deals; they’re a hindrance! Make it a point to seek out agents who are great at making everyone happy while moving people toward a deal with sound negotiating skills. To find out about a real estate agent’s negotiating skills, ask former clients about how effectively the agent conducted bargaining sessions.
Guideline #7: Remember Your Own Responsibilities! Once you form relationships with great real estate agents, do your utmost to keep them on your team. Bring them good deals, not “ghost” deals that never materialize. After all, your reputation is on the line too, and you need it be a good one because that reputation will build a long-term and profitable investing career for you. real estate agents who know you’re a reliable and honest investor will make it a point to bring you deals that never show up on the MLS listings or in the newspapers!
Key Point: Find the best real estate agents for your area of investment and cultivate great relationships with them. You’ll both profit!
About the Author:
Jack Sternberg is the creator of the renowned “Buyers First Program”. As the “gurus’ guru”, he is well known by the professional creative real estate community as “Obi-Won Kenobi”. Having been a full time investor since 1977, Mr. Sternberg has been “at” the closing table more than 1,500 times. Mr. Sternberg has the depth of experience that lend value to his associations. Contact Mr. Sternberg at http://www.askjacksternberg.com
