when looking to wholesale houses with realtor signs, what’s a good script to use when I call them and try to get the ARV and/or MLS printout? also, how should I go about estimating the ARV on any property. Should i seriously know how to estimate all repairs?? Thanks.
Why would you need a “script”? Do you have a fear of people? The Realtors arejust people and they want you to ask them about the property they’ve listed…
You should decide in your mind where you want to go with the property, jot down a few salient points that you need to know/find out about and “have at it”!
whoa. ease up a bit keith. I’m just beginning. I don’t have a fear pf people, i’m just not sure how to go about controlloing the conversation.
Often times there are flyer boxes at the property with info in them including price. It’s not the listing agents job to give you ARV. You don’t need to know repair cost to estimate ARV. You do, however, need to know repair cost to calculate your potential profit margin. ARV-purchase price-repair cost=Gross profit. If you need help putting your finger on ARV, your conversation with the listing agent will include a part about them representing you in the transaction. If you’re really interested in the property, go see it and estimate repair cost. Drive around the area and look for similar homes that are fixed up and for sale. This will give you an idea of ARV and what the competition is doing.
First thing I would suggest you getting into your noggin is that if you’re first starting out in the property buying business “most” Realtors know a tiny bit more then you do about real estate. And I put the most in parentheses because there are some extraordinarily sharp ones out there but they’re few and far between. Now with that being said I’m sure you’ll probably chose to focus on the latter rather then the majority just because that’s human nature. So, see if you can focus the former that being the bumbling boob Realtor. Imagine there are 20k Realtors in San Diego county and most of them walk you around a house and show you where the kitchen and bathroom are like you’re some kinda retard.
All the being said use the Realtor as a tool just like a hammer or shovel. They are useful for things like putting low-ball offers in to other Realtors and consistently following up with those offers until the houses close with you or someone else. Now when I work with a listing agent the first thing I ask is how long a property has been on the market then I ask what’s the owners plans if it doesn’t sell? Now you’ve got them thinking no commission. Usually we go back and forth a little why it’s over priced and it ends in me saying “well if you can’t sell it any other way and you’re getting near the end of your listing agreement ( no money for the agent ), give me a call and I’ll make them an offer”. “Oh and by the way you’re probably not going to like it but if you can get it accepted you’ll get your commission!” “It was a pleasure meeting you and have a nice day.” and I walk out. Always remember Realtors work for you, that’s what commissioned salesmen do. I know I was a salesman at one point. Good night!
First of all…leave the attitude at home…it’ll just harm you in the business world.
Secondly…watch were you get your information when querying about real estate agents. You’ve logged onto a website where there’s an obvious negative bias towards real estate agents. “Buyers pay Agents commission” is a good example. You don’t want to be mislead by people with a prejudice. You want straight answers to your questions so you can profit…you don’t need silliness.
Forget this nonsense that “85% of agents only make $20k or less a year,” or “most of them don’t make it.” Hell…my SPLIT’s more than $20k a year!!!
Those aren’t the kind of agents you’ll be wanting to work with anyway. You’ll want established agents who’ve proven themselves year after year. And I can assure you those agents are anything but “boobs.”
These pro’s can smell an investor with an attitude coming, and will want nothing to do with those types of people…they didn’t get where they’re at by catering to individuals with attitude problems.
They know a lowball offer when they see one & know the chances of such an offer being accepted are nil, and a terrible waste of everybody’s time (most importantly…theirs).
Successful agents who work with investors know where to find deals (they make them happen on a regular basis). I’d recommend you treat your agent with the respect they deserve. Tell them what your goals are…listen & learn, and let them do their job.
Someone makes the mistake of thinking they’re going to “use” a savvy agent “like a hammer or shovel”…their gonna get shut down before they even get started.
Someone thinks they’re smarter than a seasoned professional when it comes to valuing property, or marketing times, or that they’re going to plant a seed in their head ‘that they might not get paid unless they play ball’…they’re liable to find out they’re sorely mistaken. They’re just cheap entertainment. I’ve watched arrogant people make big financial mistakes over the years, and it’s typically someone who thought they knew more about real estate than the experts.
MAN! I really miss the days when people had respect for one another.
smaxor, if that is your script then your ego costs you a lot of money. A strong, competent agent wouldn’t respond well to your attitude.
Just be upfront and natural with the agent and ask them to email you the info at their convenience and if you sound polite, I think most will.
No negative bias towards realtors here… We love em.
I’ve gone through 3 courses and 2 books and every guru/investor states that realtors could be your strongest ally and you should have a few as part of your team. Treat them with honesty and respect.
From your original comment it sounds like you’re trying to get a realtor to work for free and send you all his listings and a list of comps on surrounding properties.
This will take care of comps:
http://www.homegain.com or http://www.realquest.com
As far as ARV, you need to determine that yourself or use a contractor. You could have a contractor come to give you a quote then ask him questions as you go. Make sure you pay him for his time especially if you’re getting educated on current rates.
Just to be honest. I am new to REI and still learning. I’m also looking into finding that elusive first deal.
Well this is my 2 cents.