Should I contact an agent now or when I'm ready to buy?

Question

I'm new to investing and planning on buying and holding a single or multi-family home (in Chicago) in the summer of 2020 when i have enough money saved up. One of my goals this year is to be great at analyzing deals. Is it ok to get in touch with a real estate agent now even if I won't be seriously looking for a deal until next year? I know I can practice on my own by going on sites like Trulia, Zillow, Redfin, Realtor.com, Craigslist, etc but I don't know if the MLS have more options or if an agent has off-market leads he can tell me about. The reason I'm hesitant about contacting an agent is because I feel like I'd be wasting their time. Like I'll be using them to "practice" and not because I actually want to buy anything this year. (your feedback is appreciated)

Chris Mason · Answer

Nothing wrong with reaching out to an agent now, but obviously they aren't going to be sharing their off-market pocket listings with you or spend a lot of time. More like "sure I'll set you up with an MLS drip campaign that meets criteria you ask me to input, sending you new listings meeting those criteria once a week."

Michael T. · Answer

@Pierre-Sebastien Beauboeuf yes you can definitely reach out to an agent and they will most likely be willing to talk to you for a little bit, give some guidance and set you up in the MLS.  But as @Chris Mason mentioned an agent won't be proactive in working with you until you're truly ready.

They will be happy to work with you once your in a position to start making moves.

Joel Owens · Answer

The brokers in residential and commercial that are highly sucessful are doing deals TODAY with clients writing offers to close on properties.

Someone saying I MIGHT buy sometime in the future a year for instance is too far out to give an intense focus to it.

I have buyers 1 year out doing something that are looking to put down millions of dollars on a commercial property and they want to be planning way in advance. So we do plan some and as they reach certain steps and get closer the intensity picks up. I have to allocate so much time to deals closing today, deals that are a few months off, and then remaining time to potential deals way far off.

The way far off stuff has a low chance of happening. Markets can change, people can get sick, pass away, other life circumstances can change, financial postions can grow or decline,etc. Lot's of stuff can happen where the potential purchase that far off never materializes so brokers do not put a lot of time into long shots.

Michael Van · Answer

@Pierre-Sebastien Beauboeuf Hey Pierre, I'm a local real estate agent in your market and agree with most of the people on this thread. It's not too early to start looking and to reach out to an agent. The work that you're thinking of primarily happens when you're closer but the more information and experience you arm yourself with now, the whole transaction would be much easier with more peace of mind for yourself. I'd love to have the opportunity to chat with you about your goals, most important next steps for you, as well as creating a plan together to get you prepared and actionable to achieve your goal to purchase next year.

Paul Nichols · Answer

@Pierre-Sebastien Beauboeuf

Great question! As a Realtor myself, I’d suggest interviewing a handful (+/- 3) of agents over this next year in your target area. Think of critical questions you can ask them to ascertain who will be your best choice. Remember, they work for you and you hire them.

Some things to look for:

*hunger- they’ve got to want your business and fight to keep you satisfied

*understand and have experience with investing (particularly whatever investing approach you’re pursuing), not just working for homeowners

Get put on a drip campaign from their MLS with deals that match your search criteria. Later on, when you’re ready to take action, you can then start asking for their off market stuff, etc.

Eric Carr · Answer

Find a good one now, especially if you don't have a crystal clear vision of what you want, what you can afford, and what the market looks like and looks like it's going. Preparation first!

RJ Reynolds · Answer

@Pierre-Sebastien Beauboeuf

Reach out now and interview agents. Find a great match where communication styles and expectations mesh. Be clear on your time line and criteria.  Make sure the agent isn’t sending you properties that don’t match or if they are, find out why. A poorly written search setting can result in bad automated output. Many of our search engines can be modified by the client but more detailed criteria will require a knowledgeable agent.

Good luck

Mark Robert · Answer

Certainly nothing wrong with reaching out now in anticipation of a purchase in the future. Be sure to let the realtor know your plan and timeline. Attend meetups in your area and you might just get lucky enough to meet a realtor there, or someone who can point you in the right direction. Start growing your relationships now, it will only bear fruit in the future. Good luck!

Anette Lyons-evans · Answer

Do it now, that way you can start analyzing deals and you get a feel for pricing in the areas you are looking.

Dennis M. · Answer

yes and you should be analyzing deals everyday . Have them set you up with a mls listing sent to your email daily . I would even go as far as touring houses now for two main reasons - often a house will sit on the market a long time and it may be one you buy next year  and two . You want to understand your market and what a homes value is . If you see a dozen houses at different price points you will gain a lot of knowledge and be able to know what a 100k house looks like and what a 50k house looks like . You will develop a keen sense of value and what’s a smoking deal the more homes you tour and analyze . This will be extremely helpful to you when you have the funds and ready to pull the trigger . You can then walk in and be like “ nope this house is overpriced by ten grand “

Should I contact an agent now or when I'm ready to buy?

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