There are many facets in real estate investing and all have to be done successfully in order to turn a profit. Arguably the most important choice is the Realtor you hire to handle your real estate transactions. The Realtor is pivotal to the success or failure of a real estate investor so it pays to pick the right one for you.
Time is of the essence in real estate investing, but not taking the time to find the right Realtor to handle your real estate transactions could prove costly both in time wasted and money lost. Here are a few suggestions for choosing the right Realtor. Following these can improve your chances of getting a better Realtor and a better deal on your real estate transactions.
Research, research, research! This point cannot be stressed enough. Taking the time to do your homework on the Realtors in the area you intend to business will save you money and aggravation.
Local knowledge of real estate market conditions is priceless. The right Realtor can keep you in the flow of the real estate market changes and legalities. Pick the right Realtor and you have access to this knowledge, thereby helping you make the best decisions.
Start by contacting Realtors in the area that you are interested in doing business. The fastest way to locate Realtors is on the Web, yard signs, local Better Business Bureaus, and Board of Realtors to name a few. One of the best ways to find a good Realtor is to visit your local Real Estate Investing Association or club, often known as a REIA. Here, you’ll find many agents who have experience dealing with investors.
You’ll also be able to get referrals from your peers, many of whom have faced the exact same hurdles as you are. These referrals are often great, because many of them understand the nature of your business, especially if you’re involved in creative real estate investing.
Once you have contacted and set up interviews it is a good idea to have some basic screening questions (tailored to your needs as a real estate investor) ready. Here are some sample questions:
1. Can this Realtor help you run comps and pull sales history from your local MLS?
2. If you are selling retail, see if you can get a discounted listing agreement from them.
3. Find out if they work on REOs.
4. What buyers/investors are they working with that they can send to you on your properties?
5. What experience does the Realtor have working with real estate investors? Can you check references of some of the resent real estate transactions?
6. Will your Realtor be dedicated to you? How quickly will they return your calls, and how much time do they have to handle your real estate transaction.
Again these are just a few questions to get you started. As you become more experienced you will develop you own checklist.
Once you have completed the interviews it’s time to sit down and review each Realtor you spoke with. Consider all the facts. Which Realtor(s) did you feel most comfortable with? Which were too aggressive or not aggressive enough? Which Realtor gave each question careful consideration before answering? Which Realtor was honest enough to admit it when they did not know the answer to a question? This is where your intuition will come into play.
For those Realtors making the final cut you will need to check for licenses, training and recognitions from the leading real estate departments in your area. These licenses provide some protection in the professionalism where the real estate Realtor is concerned.
You will also want to discuss with the Realtor what their terms, conditions, and fees are the contract they will ask you to sign. Ask if their charges are negotiable. There are lots of points to consider in most this.