What's the best way to choose a realtor and let the others down?

Question

I attended my local real estate meeting for the first time and connected with a few realtors there. They were vying for my business and I got a few business cards. I've already met with two other realtors and haven't yet decided which one to go with.

The issue I'm having is that the realtors at the meeting know each other and I'll probably be seeing them regularly. IF I do choose one I have a fear that the other might grow resentment.

Am I overthinking this? How do I make sure I'm being polite and respectful towards the one I turn down?

Joe Villeneuve · Answer

Way overthinking this.  If you are already letting emotions, and emotions that have nothing to do with a property yet, seep into your thoughts, REI should not be in your future.

Joe Villeneuve · Answer

First, as a REI, you should be working with a number of different REA.  Don't pick just one.  They should be coming to you, so the idea that you would have a problem with one you didn't pick shouldn't be an issue.  If it is with one of them, don't use them...they are not REI friendly.

Nathan Broekhuizen · Answer

You do not have to choose just one agent. Let them know what you are looking for and use the agent who finds the right properties for you. They will all likely set you up with a search on the MLS which is okay but the agent that is sending you off market deals is the agent you want to work with. I'm a Realtor and I met with a potential client who wants to get into real estate investing and I encouraged him to talk to other agents as well about what he is looking for. If I can't find him an investment property that hes interested in and another Realtor can, then the other Realtor deserves to get the commission. However, most agents will set them up on a search for multifamily properties and ask other agents if they know of any coming available. Whereas, I will be calling rental owners in the area asking them if they would consider selling.. hope this helps!

Joe Villeneuve · Answer

NO, no and NOOOOO.  Never sign an exclusive agreement with a REA if you are REI.  That's for homeowners.  The ones that want you to sign one with them...avoid.

or, ask them if that means they will send you, and you only, all the property leads they get.

Miguel Rosario · Answer

@James Dean-Howell

I am a realtor in Houston. I would first call them and see if they answer the phone. Ask them about the past experiences they have and see if it is inline with your business. Then ask them to send you some comps on a property you are looking at. Analysis there responses and compare the to other realtors you talk to. Also talk to other investors in your area and ask who they use. I hope it helps.

Seth Parmelee · Answer

Here’s my take on this from the side of a broker. You want me to work for you but without the safety of getting paid for any work I put into you? Sorry most of us will pass unless we have some form of trust and relationship with you. My state requires a buyer agency agreement at time of offer. The investors I normally work with that’s when we do an agreement for that property. If I’ve never worked with you than I might show you one or two without an agreement, but I’m not putting much effort into it until there is some trust in place or an agreement. Sorry guys but this is my career and I get paid for transactions not for feeding you deals without any financial safety.

Brian Ellis · Answer

An example would be remaining in contact with three agents without telling them you are working with three agents. If you want to work with one agent, just sign the form and let the others know. If you don't sign the exclusive agreement tell them why you have decided not to.

The reason I advise not signing one, is because its tough to find a deal when you are starting out. Most likely you will be bringing the deal to your agent. If you didn't sign the exclusive agreement then you have the option to bring a deal to the agent who will get your foot in the door quicker.

Adriel Liwag · Answer

@James Dean-Howell

As an investor, the very first thing you should be looking for when choosing to work with an agent is if they’re if they do any investing theirselves. If so, what type of investments are they doing and what is their view and experience with investing. I can tell you right off the bat that if they don’t do any type of investing then don’t waste your time with them. 99.9% of the time, agent don’t own their own home, don’t have any investments and don’t have any concept of renovations costs or financing costs with HMLs. You’ll find that being an agent is a job for them which is for most but they only see the big fat check in the front end. The point of investing is about your future, so unless you’re working with an agent who ms an investor as well, you guys will be on different pages. From my personal experience previous agents who’ve tried to work with me in the past are now coming back to me after barely learning about investing and telling me how they’ve realized why I never got back to them on deals they’ve tried sending me.

Never sign an exclusivity contract. 1) you don’t need to. 2) if you do, you’re prevnting yourself from other opportunities others may send you. And any good, investor friendly agent would realize that themselves and wouldn’t make you sign one. You should actually be letting agents know that you don’t work exclusively with any agents. The reason behind that is because you want to let agents know that you will treat them fairly by giving them opportunities in return if they were to give you opportunities. Do not tie emotions into the is business. There are plenty of people in the business to help you grow and those who take offense by you simply not being exclusives to them are the ones you don’t want to work with and will most likely not last in the business. Time is your most valuable asset, don’t waste your time without people who don’t bring you value because as an investor, at the end of the day you will be bringing them lots of value.

James Dean-Howell · Answer

Can you define specifically what you mean by "taking advantage of agents" or "beating around the bush?" The reason I'm asking for specifics is because I thought signing an exclusivity agreement was standard and that if I didn't I was potentially taking advantage of an agent. Now I'm told that it's not appropriate to sign an exclusivity agreement for a REI. So I need to know specifically what proper educate on REI and Realtor interaction is. It's not intuitive, as the position on signing exclusivity agreements shows. Thanks for taking the time to respond.

Sam Shueh · Answer

You 2 still can do business together on next deal.  Thanks, I am working with someone.

What's the best way to choose a realtor and let the others down?

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