SS67: How To Choose The Best Real Estate Agent

SS67: How To Choose The Best Real Estate Agent

The National Association of Realtors has over 1.5 million members throughout the United States; how do you choose the best one for you? In this episode, Charles outlines some things you should be looking for along with some red flags.

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Talking Points:

  • If you are looking to purchase a 1–4-unit rental property; you will most likely be working with a residential real estate agent. But how do you choose one?
  • First off there is a difference between real estate agents and realtors; real estate agents have passed a course and a test in a certain state and are licensed by that state. Realtors are part of the National Association of Realtors and have specific requirements that they need to complete in order to join.
  • What type of property are you purchasing? If you are purchasing an investment property; I would look number 1 for a real estate agent that works with investors specifically. Owning their own rental properties is a bonus. These agents will understand what makes a profitable real estate investment and what to look for. They are going to have a network that includes other investors and sellers.
  • If you are purchasing a home to live in without tenants; you might use a different real estate agent.
  • Questions I would ask:
    • How much experience do you have in real estate and in the market? (ask about investment experience if you are buying an investment property).
    • The key to buying in a hot market is getting your offer to the top of the pile. How are they going to do that?
    • How are they going to make you a stronger buyer?
    • How good is their network? You will need a lender and an inspector; to speak to them; evaluate them.
  • Red Flags:
    • How professional are they?
      • Dressed professionally
      • On-time?
    • Are they pushy? Are they putting their interests above your interest?
    • Are they knowledgeable?
    • Are they prepared? (I want to see comps, I want them to give me a high-level overview of the comps)
    • They are part-time – you want a full-time real estate agent
  • I always want to be the strongest buyer in a real estate transaction; maybe not the highest offer or coming in all cash; but I will add a letter to an offer, personal references, etc. Most people aren’t doing that. You need to sell yourself to the listing agent.
  • You need to trust your agent; if something comes on the market now; do you trust them to go to the property, review, send photos/videos, and for you to put in an offer?
  • Your buying agent needs to sell the listing agent on your offer; there needs to be a solid delivery of the offer to the listing agent and seller. How do they suggest that is done? Have they done it with an FHA mortgage? What has worked for them in the past? What hasn’t? Do they have a solid network of agents and what is their reputation? (I am selling a portfolio now and one buyer’s agent brought an offer that fell through immediately and then they told my listing agent that they had another buyer (of course at a lower price) – I told my agent that I will not accept any other offers from that broker). The broker now has a poor reputation with me and my listing agent because they cannot vet the people they are working with.

Do not fall into the family and friend trap. Everyone knows a real estate agent; you need to find the one that is best for your situation; and it is probably not your sister-in-law.

Transcript:

Charles:
Welcome to Strategy Saturday; I’m Charles Carillo and today we’re going to be discussing how do you choose the best real estate agent. Now, if you’re looking to purchase a one to four unit property, you will most likely be working with a residential real estate agent, but how do you choose one there’s millions of them? Well, first off, there’s a difference between real estate agents in realtors. You real estate agents have passed a course and attest in a certain state and are licensed by that state. Realtors are part of the national association of realtors and have specific requirements that they need to complete in order to join that association. They’re also real estate agents, but they’ve also taken the next step in becoming realtors. The main thing with realtors that they have access to the MLS, which is the multiple listing service where properties are listed, you know, on mark, as they call it.

Charles:
And where you know, pro properties are listed for sale and properties are listed for rent. So what type of property are you purchasing? If you’re purchasing an investment property, I would look number one for a real estate agent that works with investors specifically, you know, owning their own rental properties is a bonus. And these agents will understand what makes a profitable, real estate investment and what to look for. They’re going to have a network that includes other investors and sellers as well. And the thing here too, is that anybody can put you on an MLS automatic email, and something comes out that has your square footage and your bathrooms and units and all, and whatever it is, anybody can do that. The main thing is that they will follow up and be proactive and say, listen, here’s the property at 1 23 main street here are comps for the property, and they’re gonna get you prepped for re looking at that property.

Charles:
And then we’re going to see it and putting it, offering people that are just having an automated email, go out, you follow up with ’em and go, oh, you know, let me talk to someone, let me, let me, let me pull those comps. If you have someone that’s proactive, they know exactly, Hey, this is what it’s gonna rent for when you have it. And this is what’s probably gonna sell for. And you know, this is a potential issue, but that’s why working with someone that knows the area really well is so crucial. Now, if you’re purchasing a home to live in without tenants, you might use a different real estate agent. And you know, a lot of times you have, you have a little bit more seasoned, real estate invest real estate agents that will work with investors and you’ll have other ones that work with just home buyers.

Charles:
And I know a bunch of ’em what they do. They don’t wanna deal with investors. They can’t really vet ’em that’s probably a waste of time and all these different things that go with them. And the problem is there is that you just new agents on the other hand, they’ll work with anyone cuz they just want any type of business. That’s not what you want. You want someone that’s seasoned in exactly what you’re doing. Now, questions I would ask is much experience. Do you have in real estate and in the market, you know, ask about an investment experience. If you’re buying an investment property, have they own properties who manage them? Do they still have ’em? How are they how are they doing? You know, why did you sell? ’em Keep to buying in a hot market is getting your offer to the top of the pile.

Charles:
I mean, how are they gonna do that? This is really the main thing of how it comes in of how how they work, you know, how are they gonna make you a stronger buyer? How good is their network? You know, you’ll need a lender and an inspector speak to them and evaluate them as well. And you might wanna utilize ’em it’s just like a, when you’re, when you’re, when you have a real estate agent, it’s just like a property manager, people think, oh, they’re just putting it offroad, just showing. Well, if they’re a really good pro, if they’re a really good real estate, a really good property manager, I’m utilizing more than just for a property manager then going out and plunging toilets and, and collecting rent, right? You’re using them for their discounted contractors. You’re using them for their handyman. You’re using men for all the contacts that they’ve that they’ve put together over, over decades of being a property manager.

Charles:
It’s same thing with a real estate agent find the good inspectors that they work with. Find the good lenders, find the lenders that are gonna fit you better. There’s gonna be different lenders for someone doing an FHA home buyer loan versus you know, versus a home buyer with a conventional mortgage versus an investor. You know, that’s buying an apartment building, so they need to you need to utilize these people that they’ve used before. And you can save a lot of time than just going on the internet and trying to find, you know, lenders or inspectors in your area red flags, you know, how professional are they? Are they dressed professionally? Are they on time on time? It’s it goes to show how, how they’re gonna show up to the listing agent. Are they pushy? Are they putting their interest above your interest?

Charles:
You know, make sure that you’re all on the same page. Are they knowledgeable, right? Do they know the market? Do they know the areas? Do you know what you’re actually buying? Have they done this before with some, with someone else? Are they prepared? You know, I wanna see comps. I want them to gimme a high level overview of the comps as well. So they say, Hey, you’re buying this property here at 1 23 main street, this one down here or this one over here. These are apples to apples. This one over two doors down. This property just came off the market. It was for rent. This is what it rented for. I mean, all this information prepares you to make quick concise decisions. And this is how you can be even more confident with the right real estate agent when you’re going in and putting in offers.

Charles:
Are they part-time, you don’t want part-time you want full-time real estate agent. That’s what you focused on and that’s what you need to do. If you’re looking at investment properties during the day, you can’t have someone that doesn’t get off work till five. You know, I always wanna be the strongest buyer and a real estate transaction. Maybe not the highest offer or coming in all cash, but I will add a letter to an offer of personal references, et cetera. You know, most people aren’t doing that. So you need to sell yourself to the listing agent and you need your buyer’s agent to help you do that. And you need to trust your agent. If something comes up on the market now, especially in a hot market, do you trust them to go to the property review? You send photos and videos and put in an offer.

Charles:
If not, you have the wrong real estate agent your buying agent needs to sell the listing agent on your offer, who then needs to sell the buyer outta the seller. You, there needs to be a solid delivery of your offer to the listing agent and seller. How do they suggest that is done? Have they done it before? Do they work with someone putting in the type of financing? If you’re buying a house it’s FHA mortgage, how can they get you to the top of the offer pile with that? What has worked for them in the past? What hasn’t do they have a solid network of agents and what is their reputation? Right. So right now I’m selling a portfolio of one to five or actually three to five unit properties. And one of the buyers one of the buyers agents that brought an offer to my listing agent that fell through immediately.

Charles:
And then they told my listing agent that they had another buyer, of course, at a lower price. I told my agent that will not accept any other offers from that broker. And the broker now has a poor reputation with me and my listing agent because they cannot vet people. They are working with, you know, a lot of new agents out there, inexperienced agents they’ll just take whatever comes to them and they’ll throw it against the wall and see what sticks. That’s not what you want. You want. You know, you want a buyer’s agents that are going to, you know, vet you as well, know your complete situation, and then prepare a strategy for you to buy property that fits into whatever your criteria and, and don’t fall into the family and friends trap. Everyone knows a real estate agent. You need to find one that is best for your situation. And that’s probably not. Your sister-in-law find one that works in your area. Find one that works with investors. Find one that works with the properties you are trying to buy and in the area you’re trying to buy in. So I hope you enjoyed, please remember to rate, review, subscribe, submit comments, and potential show topics at global investors, podcasts.com. Look forward to two more episodes next week. See ya then

Announcer:
Nothing in this episode should be considered specific, personal or professional advice. Any investment opportunities mentioned on this podcast are limited to accredited investors. Any investments will only be made with proper disclosure, subscription documentation, and are subject to all applicable laws. Please consult an appropriate tax legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of Syndication Superstar, LLC, exclusively.

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