How do I handle realtors - Posted by Brian

Posted by Darin on March 25, 2000 at 19:11:48:

Keep in mind, realtors work only on commission and only get paid at closings. Most realtors will not chase all over for you with low ball offers or lease options. They usually dont understand anything creative.

If commissions are threatened or if they have to put tons of time in a deal, they probably will not respond to you.

Suggestion: Take controll. You write all your own offers if you are making multiple low ball offers. Have your agent give you blank copies of offers and addendums and you type them up so alls your agent has to do is fax and present offers.

If the person doing the searches is a friend and does not mind doing the searches, go directly to the listing agent. By being able to speak to the listing agent, you may know before you even write if you stand a chance. You may also be able to cut half the commission down.

Though if you say “your buyers agent” and you have a contract, you are tied to that agent unless you modify your contract.

How do I handle realtors - Posted by Brian

Posted by Brian on March 25, 2000 at 14:08:37:

Hello all. Yesterday I had a meeting with a buyers agent and she pulled up all kinds of property fitting my specs on the MLS (awesome fingertip resource). Anyhow, I feel that although she wants to meet my needs, she wants to control the process and avoids talks of low ball offers and placing property under contract and potential lease options and owner financing. These things and more are all things I’ve studied about, but it does not seem like the agent’s best interest is sincerely to find me the best deal. I like her working for me in MLS if nothing but to help me compare appraisals, and I also like her ability to locate specific property I’m looking for and in a certain price range. I do not like her seeming lack of interest in making offers on my terms–seems she thinks its some kind of game. This seems to be the common trait of Realtors I’ve met. Any suggestions?

Re: How I handle realtors - Posted by Rich

Posted by Rich on March 26, 2000 at 07:05:53:


Re: How do I handle realtors - Posted by Craig

Posted by Craig on March 25, 2000 at 23:46:14:

I read a very good book last week I think any beginner in any endeavor out to read. It’s called “What would Machiavelli Do?”

You really have to have confidence out there especially in this business. I personnally have read all the books about positive attitudes and all that jazz and have not learned half of what this little book taught me. First and foremost is that you need to quit giving a hoot about what realtors think about you and how they treat you and be a little more demanding. If they aren’t willing to meet your demands then screw 'em find another schmuck that is. You’re gonna make deals happen and they’re either gonna help you or not. Unless they are there to help you get what you want, then they really ought not to exist. This is a business philosophy period. Start using it.

Bad stance. - Posted by HR

Posted by HR on March 25, 2000 at 21:51:27:


This stance reeks of amateur. Lose it, fast.

Think about it: if you were a realtor (and you were good, ie you actually bought and sold stuff for your clients) would you want to deal with someone like this? What this stance implicitely says is: “I don’t have the cash/resources (and probably the expertise) to do the deal.” Realtors HATE folks who can’t do the deal, because they don’t get paid. Can you blame them for screening out folks who waste their time and can’t buy real estate?

Remember, only 20% of the market is open to creative deals. The entire realtor industry is geared toward the 80% of the market that will sell within 7% of fmv on normal (ie. cash out, new first loan) terms. It’s going to be a very rare realtor bird who wants and knows how to deal with the 20%.

Those that do deal with the 20% are going to know right away that you are a newbie, and thus inexperienced, and the good ones are not likely to deal with you.

So what do you do?

  1. Realize that all of us have been in these shoes before. This is just another of the early hoops to getting started.

  2. Learn the lingo so you can converse intelligently with realtors (it sounds like you can; you may already be doing some of this anyway, I don’t know. I share it nonetheless to be helpful). Better yet, learn the lingo so well that you bullsh#t the realtors into thinking that you are more experienced than you are. Personally, that’s the stance I have taken, and I have few regrets about it. Fake it, in other words Brian, till you make it. Share war stories of your (fictitious0 rehabs that went well and bad; (after you have done a few, by the way, you will have plenty of war stories, and they won’t be fictitious.). You don’t have to say too much, but if your realtor thinks you are a newbie, you are dead.

Would you work with you, after all, if you were in their shoes, knowing what the probability of closing a sale would be?

Most realtors are slightly intimidated and awed by re investors; use this to your advantage. They have heard glorious fish stories of mega profits. Some doubt the profits; others sense they are on the wrong side of the fence. Use the mystique to your advantage.

  1. If you want access to the MLS, become a realtor. Yea, yea, there is the liability issue and the need to disclose, but I definately feel the benefits far outweigh the cons. Want a way around the liabilities? Have your spouse/partner become a realtor. Don’t have a spouse? Well go get one! There are lots of realtors out there! )LOL.

Seriously, my wife got her license so we would have unfettered access to the MLS, and we have never regretted it. It also helped her learn the biz, it created another biz for us, it’s the only way to do safe comps, etc.

  1. Get your financial house in order, so you can make all cash offers and be able to pull it off. Partners, credit cards, signature loans, etc are all some avenues to explore.

I have NEVER had success with a creative offer through a realtor. Face to face with an owner? Yes. Thru a realtor? No.

  1. Want to know something silly that creates mega credibility for me? My business card. Since I have a home based business, I decided to invest in real fine cards, letters, and stationery. My bcard is a bifold card (which most folks have never seen before), on special paper, with a nice logo (designed for me by a graphics designer for $300 from a local university), etc. It IS so professional. Man, I always get comments on that card. And you know what? I’m a general contractor. Cause it says so on my professiona card!

These are just some ideas, Brian. Improve your stance, your position before the other. It doesn’t matter who the other is: seller, realtor, loan officer, etc. Be a player. And fake it till you make it.

If you hang on long enuf, you will make it. This is all part of the Mt. Everest learning curve of rei. Good luck.