How do you deal with uneducated Realtors?
Obviously, a lot of Realtors stand in the way of a good deal. How in the heck do you get them out of the way or get them to understand what you are offering. Sometimes it’s like talking to a brick wall. I understand they are people too…they fear what they don’t understand and they don’t want to look stupid for not knowing.
Howdy JMB:
I am not sure you explained why you think Realtors are uneducated. Will you give an example? Realtors to become Brokers need two years experience as a salesman in Texas anyhow and hundreds of classroom hours in Real estate and financial matters etc. They are not dumb. I too was a Realtor once.
Please help us understand your exact problem and maybe we can help.
You can ask to go and meet the owner when the offer is presented to help explain your offer if you feel the need or get the Broker to do it instead of the salesperson.
I am truly sorry you are having problems. Realtors are supposed to be educated and smart about REI stuff. They are supposed to be honest too but everyday you see some getting their license taken for misconduct. I hope some of the members here can help you
I said a lot…like 98% of them are not to bright. Some are good.
That’s why I’m thinking about getting my license.
I actallly found a good deal in a subdivision one of my buyers wants to live.
This lady owns her daughters house that recently got divorced. It’s been vacant for about a year. The house is on it’s 3rd Realtor…
I contacted the owner to let her know I was going to make a creative offer.
I want to L/O her home. I told her I do not want to go around her Realtor. So, I call the Realtor and she starts playing this (I’m smarter than you) game with me as soon as I start explaining what I want to do. Don’t ask me why…ego?
Look, I know in the back of her mind all the Realtor is thinking is how she is going to get paid.
Basicly, I told her I can come in and take over her payments and cash her out in a year or two. She couldn’t get that, I would be getting the down payment from my buyer, I would be getting the monthly spread, and I would be doing the owner a favor by giving her debt relief. I even told the Realtor she would get paid in the back end or I could pay her a flat fee.
Nooooo…she had to give a snotty comment…“Sir, we don’t give houses away for zero down…” I felt like reaching through the phone and smacking her upside the head.
This is after I talked with the owner and told her I would be willing to take over her payments until her house sells! The home owner wanted to know more, but for legal reasons I told her I would make a proper offer through her Realtor.
So, after all this I sent the home owner an email explaining to them that their realtor did not want to cooperate and to give me a call when her listing expires.
And that is my example of a Realtor standing right in the way of a deal that would make me $20,000. A buyer that was ready to deal…and a realtor that did not want to. If I were the home owner, I would FIRE the realtor in a heartbeat.
Now I know what Wendy Patton means when she says…“Realtors control the market”
By the way, why don’t you have your license anymore?
jmb,
When you were chatting with the owner, did you discuss the price that you’d be willing to pay her 1-2 years down the road? I think your post indicated that the house had been vacant for a year – has it been on the market all that time?
No, I didn’t want to go to far since she was listed with a Realtor.
She’s asking $118,000. It’s worth $129,000, and I would sell to my tenet buyer for $135,000 on a 12 month option period. So, I’d make $17,000 not $20,000 like I previously posted.
And, yes…it’s been listed with 3 different Realtors so far in the last year.
I don’t mind paying her the $118,000 she is asking as long as she accepts my terms.
I know this isn’t the only deal around, there are PLENTY! But, this is a nice house that fits my buyers criteria and it’s in her price range.
I guess I will have to keep looking for another deal.
I plan on sending the home owner a letter and have her call me as soon as the realtors listing expires.
JMB,
Sometimes it’s easier just keep looking for the right realtor. You have to remember that your time is also gold so you might not even have the time to educate the realtor…it’s not worth your time.
My experience started by just calling realtors and inquiring about different properties especially foreclosed properties. Next thing is you want to know what kind of experience he got in foreclosures (i.e. how many foreclosed properties he closed).
Once you found this right realtor, he will be one of your most valuable member of your real estate investment networking.
That’s why I’m working on getting my real estate lisence.
JMB:
Ted gave you some good advice. Realtors can be a good source of leads and deals for you. If you learn how to get them in your back pocket, that will be the key to your success. Start networking with the realtors in your area. Tell them to contact you before listing any fixer-upper properties. Tell them you can close quickly and they can write the offer. I have a ton of real-estate agents in my area who tell their clients: " I can list it for $200k or I have an investor who will purchase it right now for around $150k and close next Friday."
You will find realtors will be a plentiful source of deals if you educate them and let them know what you are looking for.
Best Riches,
Jeff Adam
Good point Jeff.
I am now taking classes to get my real estate license. I think this will help me side step a lot of problems with other realtors. I’ll know their motivations and be able to speak their language. Besides it will give me access to the MLS and comps when buying or making offers.
I just see soooo many realtors out there who don’t have a clue about anything. It’s very frustrating. All most of them care about is how good their picture looks in their ad! LOL!!!
I’m also exploring Wendy Pattons method for dealing with Realtors. She says she get almost all of her deals from other realtors. That proves that most of them know nothing about investing. If they did they’d snatch them up for themselves.
A couple things stuck out in your post…
Sounds like you contacted the owner before contacting the realtor. That ticked him (or her) off I’m sure.
If you follow Wendy’s materials, you will find that she recommends paying out the full 6% commission. don’t try to low ball them on fees. Depending on your market, you may want to try 2% now, 2% in a year and 2% at closing. If its’ a really strong seller’s market, you may even offer more up front. I emailed a few in my area and they were very receprive to this proposal.
However, some are just simply clueless no matter what you do.
Carlos
I told the owner I was going to make an offer through her Realtor. I was NOT trying to go around the realtor. The realtor had no idea I called the home owner.
Historically, I have always gone directly to the seller and talked to them. This doesn’t always work, but 6 out of 8 times it has. It cuts down on confusion. The realtors get mad sometimes, but tough for them. I hope this helps.
One of the keys to being a successful real-estate investor is learning how to network with realtors and being able to use the Multiple Listing Service.
One method you can use to find out who the top-performing realtors are is to check in the MLS and see who is listing and selling all the properties in your playing field. You could also check and see what agents are selling all the REO properties. There are agents out there that have contracts with banks and list all of their REO’s. Your job is to find out which ones and start offerring on their listings. If you could build a relationship with these agents, you might get access to properties before they are even listed! It is not uncommon for an REO agent to have a relationship with a couple investors that get previews to properties before they are listed. The reason for this is simple, if the agent can perform and get the properties sold for the bank, the longer they keep their contract.
If they cant perform and properties stay on the market and dont sell or keep falling out of escrow, then they get the axe…
Another method is to send out a monthly mailing campaign to agents in your playing field:
“I Am looking To Purchase 100 Properties This Year”
Dear Realtor, what do you have that I can purchase?
I am looking to purchase fixer-upper type properties in the Inland Empire.
I can pay cash and close quickly. I will let you write the offer on any property
that you bring to me. I own an investment company that specializes in
buying fixer-upper type properties and helping people out of their situation.
Whether you have a client who is in foreclosure, transferred jobs, is going
thru a divorce, have to settle an estate, or simply just needs to sell fast,
call me at directly at 1-800-272-SOLD…
John Homebuyer
Best Regards,
Jeff Adam