Realesinvest,
Let me start out by saying that I am a Realtor and have been one since 1986. Having said that, let me also say that Fdjake is right on, especially if you’re new.
There are several problems with using Realtors. The main one is turnover. It’s been said that 80% of the work is done by 20% of the Realtors. That being said, what are the odds that you’ll get a good one? Very small unless you know how to interview an agent.
Stop and think about the 80% rule above. A busy agent probably doesn’t need or want your business…WHAT? An investor is looking for a deal. That means that of the homes that you look at you may only purchase 1 out of 25 or even 1 out of 50. Do you think an agent can make a living if they’re only getting paid 4% of the time??? No way! Besides, most agents are trained to not deal with someone who isn’t ready to purchase today and at market value.
You’d come out a lot better if you have access to the MLS without going through a Realtor. But if you need one, ask the following qestions:
- How many transaction side did you handle in the past year? If the answer is not at least 25 to 30, RUN. They don’t usually have the experience needed to help you.
- How long has he/she been in business? Most agents fail within the first 2 to 3 years. If the agent you’re interviewing hasn’t been in the business at least that long, RUN!
I could go on with questions to ask, but those are the two most important ones.
I would disagree with Fdjake on one account. Offer the buyer’s agent at last 3% and don’t be afraid to offer a bonus. The reason is simple. The top agents, when scanning for a property, may scan the commission as well. I do. If I’m not getting paid at least 3% commission, I’m not getting in my car. And a top agent is without a doubt the best salesperson.
Granted, I’ve only been investing for just over a year, which is the main reason I’m looking at sites like this, I’m learning a lot, but I offer either 4% commission to other agents for their buyer, or maybe $1,000 bonus. I just sold a home by offering a new wide screen TV with the purchase. These little things are attention grabbers. It doesn’t matter if you’re grabbing the attention of a Realtor or a buyer.
One othe thing that I do, is offer to pay 3% of the buyer’s closing costs. Yes, some of these things get expensive, but so does holding a property. So far, out of 8 homes, I’ve never held one more than 3 months working this way.
I hope this helps, but remember, this is only my opinion. Others may work differently and have success doing it their way.
No matter what you do, come back to a site like this often. As I stated when I started, I’ve been an agent since 1986 and I’m still learning, especially here.
Good Luck,
Ken Tate (a.k.a. Mr. Real Estate)