Finding a good agent

[Nikki Nguyen]

Hey guys! I’m just getting started with real estate investing and I’m in the process of finding a real estate agent. Are there certain questions to ask them to make sure we’re a good fit for each other? Also what are some red flags to look out for? 

Thanks in advance! 

[Darius Parsia]

Hi Nikki,

Here are some questions to ask potential agents to help you determine if you're a good fit and some red flags to watch out for:

Questions to Ask a Potential Real Estate Agent:

1. Experience and Expertise:
   • How long have you been working in real estate?
   • What types of properties do you specialize in (e.g., residential, commercial, multifamily)?
   • Have you worked with real estate investors before? - You may find that most RE agents DON'T want to work with investors, typically because it means less commission for them. Try to find an agent that works with a lot of investors.
2. Local Market Knowledge:
   • How well do you know the local real estate market?
   • Can you provide recent examples of successful transactions in the area?
3. Availability and Communication:
   • What is your availability like? Are you a full-time agent?
   • How do you prefer to communicate (phone, email, text), and how responsive are you?
4. Pricing and Negotiation:
   • How do you determine the value of a property?
   • Can you provide examples of successful negotiations you've been involved in?
5. References and Testimonials:
   • Can you provide references from past clients or share any testimonials?
   • Do you have any online reviews or ratings I can check?
6. Team and Support:
   • Do you work independently or as part of a team?
   • Will I be working directly with you, or will I interact with other team members?
7. Fees and Costs:
   • What is your commission structure?
   • Are there any additional fees I should be aware of?

Red Flags to Watch Out For:

1. Lack of Local Knowledge: An agent who is not familiar with the local market or doesn't stay up-to-date with market trends can be a red flag.
2. Poor Communication: If an agent is unresponsive, doesn't return your calls or emails promptly, or doesn't communicate clearly, it can lead to misunderstandings and issues during the buying process.
3. Limited Experience: While every agent has to start somewhere, if you're dealing with a very inexperienced agent who lacks a track record, you may want to consider whether they can effectively guide you in real estate investing.
4. Conflict of Interest: Make sure the agent doesn't have any conflicts of interest that could compromise your best interests. For example, if they represent both buyers and sellers in the same transaction, it may raise concerns.
5. Pressure Sales Tactics: If an agent is pushing you to make decisions quickly or seems more interested in closing a deal than finding the right investment for you, be cautious.
6. Lack of References: If an agent can't provide references or has negative reviews from past clients, it's a sign that you should proceed with caution.

Take the time to interview multiple agents, ask these questions, and trust your instincts when making your decision.