Re: Real Estate Agents - Posted by Carles Parrish
Posted by Carles Parrish on May 29, 2006 at 21:35:12:
Absolutely NOT! Your agent friend is accustomed to working with home buyers and having lots of inventory to show. They do not want the competition of other agents. It is all about the commission.
You should have an agreement with an agent to represent you as an investor. You should instruct that agent on what types of property you want and expect him to bring you. Let the agents know what CAP rate you expect and the NOI you are looking for (they are both related).
I have a Fiduciary Buyers Agreement I use with agents when representing me. I want them to go beyond the call of the home selling agent. I expect them to work the expired and the FSBO market. I am not interested in the local listed market. I feel an owner is more motivated to listen to a reasonable offer after the property has been on the market and rejected by buyers for 6 or more months.
Your agreement with the agent says that YOU will pay his commission on any property he helps you buy. This makes his job of talking to unlisted property owners easier.
When talking to a seller, the agent needs to explain the ground rules; Mr. Seller, I am a real estate agent, but I am not calling for a listings, my client is paying the commission. I am calling to make an offer on your property subject to inspection. May I ask you some questions???.
I give them contracts and expect them to make offers for me on properties subject to inspection. You should also give them an advertising budget to run real estate wanted ads on your behalf.
Yes, work with more than one agents, this puts the odds in your favor of finding a good deal.