Working with a good real estate agent can be the difference between success and failure in real estate investing. A highly qualified realtor can provide you with the professional guidance that you need and help you avoid the common pitfalls that come with investing in real estate. So how should you go about finding a real estate agent who is right for you? And what are the characteristics that you should be looking for? This blog will answer these questions and show you how to choose a realtor when buying an investment property.
Related: Do I Need a Real Estate Agent to Buy Investment Property?
How to Choose a Realtor When Buying a Rental Property
Figuring out how to choose a real estate agent is a critical step that every real estate investor needs to master. The process requires a decent understanding of how real estate transactions work as well as close attention to certain personality details. Here are a few tips on how to choose a realtor to buy a property.
1- Make sure to distinguish between listing agents and buying agents
The first step of figuring out how to choose a realtor is making sure that you are working with the right real estate agent. In fact, it is common for a first time real estate investor to work with a listing agent instead of a buying agent. This mistake can prove costly due to the conflict of interest that it creates. Working with a buying agent ensures that your best interest is the top priority and spares you the hassle of navigating dual agency issues.
Related: Listing Agent vs Selling Agent: What’s the Difference?
2- Prioritize agents with extensive experience
Experience should be an important factor when working with a real estate agent. This is especially the case if you are a novice real estate investor. Moreover, an experienced agent with a proven track record will be able to land you great deals and unearth undervalued income properties. The last thing you want to do is work with an agent who is learning on the job. Before you pick a real estate agent, make sure to ask about their past deals and inquire about how long it takes them to close a transaction.
3- Work with agents who received positive reviews
Experience is not the only thing you should focus on when sifting through potential real estate agents. Another factor that is just as important is positive reviews from clients. As a large chunk of the real estate industry continues to move online, finding client reviews has never been easier. While it is fairly difficult to find an agent with a spotless record, you should take time to dissect these reviews and see if any red flags stand out. Needless to say, you should avoid any realtor that receives a consistent pattern of complaints from their clients.
4- Hire an agent that knows the local housing market very well
When investing in real estate, it is essential that you retain the services of an agent that knows the local housing market. Trends vary from one market to another, and a realtor cannot be expected to have a firm grasp of all of them. This is why it’s advisable to work with an agent that works exclusively in the area you’re planning to invest in. Research some recent local market trends and ask the agent to see if they are up-to-date with recent developments in the market.
5- Pay attention to the agent’s personality and communication skills
Another important aspect of how to choose a realtor is the agent’s personality traits. An investor-friendly real estate agent should be quite personable and communicative. In fact, good communication is paramount for facilitating deals and interacting with buyers and sellers. Furthermore, your agent should be likable enough for you to establish a good rapport with them. Investors and realtors spend a lot of time together, so you definitely want to work with someone whose company you enjoy.
6- Work with someone who values your input
Regardless of your level of experience, you always need to have some level of input in decisions concerning the income property you invest in. While the agent should be the most qualified person in the room, your input shouldn’t be ignored. Real estate investing is a team effort, and smart decisions can only be made when both parties’ viewpoints are taken into consideration.
Related: Follow This Advice to Always Find a Good Real Estate Agent for Your Investments
Now that we have gone over some valuable tips on how to choose a realtor, let’s discuss some of the warning signs of a bad agent.
Characteristics of Realtors to Avoid
For every good real estate agent, there is an equally bad one. Here are some of the signs that let you know an agent is not a good fit for you.
- Avoid realtors that don’t respond to your inquiries in a quick manner. More often than not, these realtors won’t prioritize your needs and are more likely to favor bigger clients.
- Don’t work with agents that are coy about explaining certain aspects of the real estate deal.
- Avoid agents that have trouble understanding your ideas or what you are looking for.
- Don’t work with agents who put a lot of pressure on you when it comes to picking a real estate investment.
- Agents that are easily swayed should also be avoided. This usually indicates a lack of experience or belief in their strategies.
The Bottom Line
Learning how to choose a good realtor is extremely valuable to a real estate investor. Taking ample time to find an agent that understands your needs and commits diligently to help you achieve your goals is the key to success in the housing market. You can start looking for realtors right now on Mashvisor! Schedule a demo to talk with an expert who can help you connect with the right agent for you.
To learn more about how we will help you make faster and smarter real estate investment decisions, click here.