Posted by Tony-VA on August 06, 2002 at 08:05:26:
There are a variety of streams to fish and using realtors is a valid stream. Like any other it has it’s pro’s and con’s.
One pro is that you have someone else doing some of the work for you while you are working your job. But you must stay on top of these people and be very, very specific in what you seek. You must also be sure to make it worth their while. A buyer agency is something you will want to consider as well with your agent.
As it sounds like you are busy with work, I would not suggest that you spend all day looking at properties (other than trying to get a feel for your market). Driving around all day with an agent is a waste of their time.
You need to NOT waste their time. What you offer them is ease of offer and high volume. This gives them time to drive Harry Homeowner around to look at 12 houses.
I do not have Steve’s course but I have seen that his webite contains a sample Letter Of Intent. I have found that this is a great tool, especially when working with agents. This letter is basically a screening process that is not intimidating to agents.
Your agent can send you a listing of 20 properties. If you were to make 20 offers on them usuing a contract, you will quickly burn your agent out, waste their time and find life more difficult.
But if you send them 20 letters of intent, they can fax them off and simply address the ones that make return calls. Those that call back will already know the type of terms you are offering. This lets you know that they are motivated or at the very least, are in your ballpark.
Of the responses from you letters, you will have a much higher closing ratio. You will not waste time driving around to all 20 houses. Your agent will now have only to focus on the responses received. This minimized their time and effort and provided greater return and higher volume of commissions (win/win).
Take a look at Steve’s forms and see if he does not use a similar procedure. I suspect that he does.