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 agencyís sales force is usually just that Ė 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
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 wonít 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, youíll undoubtedly encounter one who is uncooperative. Many
agents donít want to work with investors simply because itíll require more
work than just writing up a contract and handing you the keys. Donít 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 agentís head and consult with the broker. If you canít get
any help from the broker, go ahead and work with the seller directly.