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Real Estate Agents-7 Guidelines For Private Investors
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?
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 confronted a fact of life: real estate agents are the best way to achieve investment success simply because of their knowledge and permanent place in the real estate community.
In terms of working with real estate agents, I have one ironclad rule for success: Only work with real estate agents who know what they’re doing! If you don’t, you’re wasting your time as an investor, not to mention that of the buyers and sellers.
Below, I give you seven guidelines for choosing the best Real Estate Agents to work with in any investment situation:
Guideline #1: Go With Full-Time Professional real estate agents At all costs, avoid part-time real estate agents out there wanting only commissions. Most of them are either mediocrities or amateurs who check in when the market is hot and then duck out when it falters. An efficient way to weed out these people is to ask for their qualifications, experience, sales, and so forth. Then, select and work 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 Those Credentials Good sources to check are your state online database and other appropriate resources. That way, you can make sure the agents are fully licensed and has no citations, disciplinary actions, etc. on their records. If real estate agents have ethics problems, you definitely don’t want them staining your reputation, even if it’s only by association.
Guideline #4: Ask For and Check Those References The gold standard in terms of proof of success can be found in satisfied customers. So, ask real estate agents for references from customers within your target market and geographical area. Then, contact those references to get a clear picture of a 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 and fair dealing. It’ll make the entire investment process a much smoother and more profitable one for you since you’ll be dealing with satisfied customers, not angry ones.
Guideline #5: Demand Good Communication Skills In any investment transaction, clear communication is the key to success. 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, don’t forget that clear communication is your responsibility as well. Make sure the real estate agents you choose fully 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 Responsibilities Once you find a great real estate agent, do your part to keep him or her on your team. Bring him or her good deals, not “ghost” deals that never materialize. After all, your reputation is on the line too, and you want it be a good one since it can help you build a long-term investing career. A real estate agent who considers you a reliable and honest investor will bring you deals that never show up on the MLS listings or in the newspapers!
Key Concept: Find the best real estate agents for your area of investment and cultivate great relationships with them. You’ll both profit!