OfflineDo We Really Need Realtors?
Most people know that I'm not a huge fan of Realtors®. That I think you need one on your power team to run comps and that's about it. I was doing some reading online and I found an investor with a good thought/quote. This individual said that a "Realtor® is only useful if they do exactly what I tell them and if they remember they work for me". It also mentioned that seasoned investors rarely ever use Realtors® and that rookie investors think they are necessary.
I fully agree. That is because seasoned investors use the techniques of the pros: wholesaling, subject-to, etc. While rookie investors think that you invest in real estate by hiring a Realtor® to find you an investment property.
Let's go back to that part about how they’re only useful if they do exactly what you say. This is not only true for Realtors®, but any member of your power team. Your accountant, lawyer, and handyman-they all work for you and should be quickly replaced if they're not doing their jobs (and don't forget you will constantly be replacing certain members of your power team such as Realtors®, handymen, home inspectors).
As I mentioned at the beginning, Realtors® are needed for comps. I've received several emails lately from people who are having trouble finding someone to run comps for them. First, you can try the websites www.sitexdata.com and www.realquest.com to run your own comps.
Then, you need to have multiple Realtors® who can run comps for you and the best way to find these people is by networking at your local REIA meetings. One of my mentors has a saying "You can't do business sitting on your butt". So, if you don't have any Realtors® on your team you can go hit ALL of your REIA meetings this month and make it your goal that you will not leave until you have at least one business card from a Realtor® who you can now work with (and remember the key of getting them to work with you is offering them all of the leads that you get and cannot use….always give them an incentive to do business with you).
Don't just read over that part about making it your goal to collect one card from a Realtor®. You need to sincerely promise yourself that you will not leave the meeting without a new contact. You need to write it on a sheet of paper. Stare at it before you head to your REIA meetings. These type of small goals—making a new contact at a meeting, making 5 calls per day, spending two hours per week driving for dollars, attending your REIA meetings, sending out 1,000 pieces of mail per month, sending 5 emails per day—these are the "secrets" to real estate wealth and freedom.
Jason R. Hanson
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
There's a lot of bad eggs out there in the RE agent world as well. Its not only the investors that have rotten eggs in the batch.
It goes both ways.
And I completely agree with your point above. It's been a beef of mine for a while, as an agent, and one of the primary reasons I took my business out of Manhattan. No disrespect to the industry at large, but it is WAY too easy to get a license and become a "professional." In New York, at least, all you need is to be a certain age (they didn't ask for proof of any type of education requirement, but I think you need at least a High School equivalency), you pay about $300 for a 75 hour course, about $15 for the state test, and $50 to hang your first license with a broker.
Deals are lucrative enough, and require fiduciary duties complex enough that I believe they could require at least an AA, preferably a BA in a broadly related field, and charge $1,000 for the first license. I think that would weed out at least half the riff raff.
But in any case, on the topic of the thread, your point is valid, and it emphasizes why due diligence, and trial and error are a critical part of the process. Agents are still worth something, and when you find a solid one, it's money!
Take care,
Chad.
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It's possible.
Writing on http://thisbluecouch.com
Of course, one very helpful thing to get a realtor(s) on your side and to help you when you need it is to refer listings to them or list your own houses with them when it comes time to resell. If someone comes to me and wants me to run 5 comps on properties they're interested in buying and reselling, that's great, but a promise to list the properties with me when done is kind. Running comps when trying to determine fair market value (FMV) for a seller is not as easy as many make it out to be. It's not like determining a wholesale price. But, then again, I would suspect that an investor might not necessarily be interested in the FMV as much as they are their mark up or a soft price.
Rick Allison, Realtor
Amarillo, Texas USA
Find comps, private lenders and cash buyers nationwide: www.TheRealEstate.PRO
Foreclosure and pre-foreclosure search engine: http://tinyurl.com/b6w7h6o
The People Helping People Movement: www.greatEPXsite.NET
Tammy,
it does go both ways! There are definitely some unethical real estate agents out there who only care about making their commission, and could care less about everything else... well, they got away with that behavior while it was a seller's market, but right now... a totally different story!
I hope that by the time this cycle is over, all those bad eggs will be working somewhere else...
wishing everyone success in finding the perfect agent,
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
I agree. To smooth over me blatantly asking my New Orleans agent to put in lots of low offers for me until we get one accepted, I guaranteed him that I'll secure his firm to manage any of the properties we close on down there. I told him he could write that in a contract if it helps justify his time, and he did just that. So I have an exclusive buyer's agent agreement with his firm for any property bought by me in that area, and there is a typed caveat that states additionally, any property purchased in that area will be managed by his firm, with terms spelled out.
It's a win/win. He see me doing most of my own research already, and knows that he might actually come in on a deal that he didn't originate, and I was able to streamline my search in New Orleans since my email was recently filling up with duplicate listings from multiple agents. Now they all go through him.
It was a smart move on his part. People can talk all day, but when it comes to Real Property, it doesn't matter unless it's written, signed and counter signed.
Happy Sunday!
-Chad.
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It's possible.
Writing on http://thisbluecouch.com
yes, just about anyone can be a real estate, just as anyone who studies enough can be an attorney, stockbroker, etc.
But not everyone can be a real estate agent who makes their only living on being a real estate agent. At the end of the day it takes alot of discipline, knowledge and ability to think outside the box.
As i've said numerous times, I am not one to present lowball offers because all my clients understand that I know the business and what matters is the precise number to close the deal. I went through something this week; a three family short sale approved property for $320k in Brooklyn. When I spoke with the asset manager of the bank who had the property, he told the least they would take is $310k.
That, plus my $20k fee was the minimum.
I sent a text to my buyers, and while a few mentioned they wanted to pay less, most knew the price was firm.
An hour later, I got an offer of $320k.
I know there is this anti-agent sentiment on here, and it seems most comes from those who haven't even been in a position to know whether or not, and that type of thinking can be to their detriment.
Believe it or not, agents actually might know more than you do when it comes to knowing what may or may not sell at a particular price. Them not wanting to present your offers may be more about not wasting their time than they not liking you.
Oh, and realtors work with you, not for you.
Believe it or not, agents actually might know more than you do when it comes to knowing what may or may not sell at a particular price. Them not wanting to present your offers may be more about not wasting their time than they not liking you.
Oh, and realtors work with you, not for you.
What it boils down to is that a realtor's time is more important than their fiduciary responsibility of submitting all the offers. Even if the property continues to sit on the market after a good amount of time to get the price that doesn't waste their time. Elix, I don't think you understand because you're not one of those agents that are lazy and would let something sit and refuse to entertain lower offers after sitting on the market that long.
One of my seller's had an agent that kept the price of his property the SAME for over a year and half despite having no bites (that the seller knew about at least).
When I have met and worked with (and read about Matt's) Starr REA, they do work for you. But, you do have to show them that their work is going to pay off. Noone wants to work for free. But, I will say, that the only homes I have in my portfolio that are buy and hold that I didn't find myself was because of this awesome agent I had in the mountains who really GOT what I was looking for and jumped on it quick as if I was his only client (I wasn't, he had many customers). THOSE are Elixes, I mean realtors, that are rare to find!
they work with you. I understand what you mean, but theoretically you are wrong.
I guess it depends on what area you're from and your relationship with your clients, but like i've said before, there has to be a level of trust on your part to trust the agents gauge of the area and what they think a property will go for as opposed to wanting them to present all lowball offers, most of which will not go over; i'm of the minority on here that does not agree with that concept because the amount of time I spent with all those properties leaves me underpaid when I compute my man time into each as a whole.
And yes I will agree its not right when an agent purposely has a property they wont move, but you're going to get those sometimes.
It goes both ways, but you just have to find that perfect agent to work with
era, realtors worked with me. They couldn't find me properties. I'd always look slightly above what I could afford and bring the house to them and we'd offer lower (before I knew about ways to find properties off the MLS). I got 3 houses that way during the bubble period and none of those are underwater today because of my lowball offers that don't work. (but the one I've had since 1992 that I refid during that time I'm swimming in) That was a period of realtors working WITH me; but the good experience I had with one in this BUYER'S market, the agent worked FOR me. I didn't have to do anything but tell him what I was looking for, go look at some houses so he got an idea of what I wanted, then say the price I wanted to pay when we found one and the terms. He did all the rest. That's working FOR me.
I don't know what requirements the state of NY has to become a realtor, but here in CA, they are minimal... and it shows in A LOT of poor agents. The good agent is the minority. The majority out here are NOT Elixes...