How Investors Can Deal With A Real Estate Agency

Real estate investors are seen as hassles by a real estate agency. A real estate agency prefers to do business with owner-occupant home buyers who have a down payment saved up, have good credit, and can easily qualify for a conventional mortgage. The goal is to make a profit as quickly and painlessly as possible. Part of the problem is that real estate agency agents rarely, if ever, work with creative financing deals that investors need. A real estate agency’s sales force is usually just that – a group of people who excel in sales but not much else. However, the real estate agency is the only place to access the Multiple Listing Service (MLS) and the real estate investor should find ways of being able to work with agents.

For a real estate agency to take you seriously as an investor, you should offer a reasonable amount of earnest money. Many investors are accustomed to putting as little to no money down as possible, but a real estate agency will not give you a second look for $50 down. Somewhere around the $500 range should get their attention.

You can also get an agent to take you seriously if you offer a fast closing. The thought of getting a commission check in 2 weeks instead of 2 months will make them work that much harder to close the deal. Usually, an agent will advise the home seller to accept an offer with a higher amount of earnest money and faster closing over an offer for a higher selling price.

If you have a creative offer, see if the agent will allow you to present it directly to the seller. You might have to fight a little bit to make it happen. A creative offer that you dreamed up won’t get the same treatment from an agent. The agent will infuse his or her own bias when presenting your offer. You want the seller to hear the offer directly from you, as no one else can accurately and enthusiastically present your offer. It will also allow the seller to ask any questions directly to you, instead of going through the agent as a middleman. There is too much that can be lost in the translation and can adversely affect any potential deals.

In dealing with agents as an investor, you’ll undoubtedly encounter one who is uncooperative. Many agents don’t want to work with investors simply because it’ll require more work than just writing up a contract and handing you the keys. Don’t be afraid to confront an uncooperative agent, especially if they are unethical. They might lie and tell you an offer was rejected when it was never presented to the seller in the first place. If you find out about it, go over the agent’s head and consult with the broker. If you can’t get any help from the broker, go ahead and work with the seller directly.