Is this normal interaction with a realtor?

Question

I started talking with a realtor about a week ago and was assured that she was the investment specialist in their office. She said she works with lots of investors and would love to help me find my next investment. I decided to run a few properties past her and asked her to run comps on a few addresses.

I was surprised when she got back to me - not with comps, but with her opinion of whether the property was worth investing in based on her comps. I haven't seen the comps and still don't know what a good ARV might be, but then immediately after, she sent me a buyers contract that she expected me to sign. This contract would lock me in to with working with her.

I'm not yet sure I want to work with her, especially in light of the fact that I didn't get comps or ARV when I asked about them. But is this a normal thing for realtors to do?

Also - is it normal for them to give their opinion on whether a property is a good investment or not, without presenting any numbers?

I had pictured that I would run the numbers and decide whether it was a good idea to move forward or not and the realtor would provide market insight and provide comps for me.

I could be wrong though. Pretty new at this. Thoughts?

Russell Brazil · Answer

You should not be relying on someone else for comps. If you do, you are going to end up with ARVs that are too high.

Instead, arrive at your ARV, then ask the agent, does this ARV seem right to you.

I usually do not need to even look at the comps to know that a property is a good deal, because I know within a certain range what properties in different neighborhoods are selling at.

Molly Ivey · Answer

A local realtor should be able to run comps pretty quickly and if she already has them, she should show them to you. How many is a few properties though? If it's more than 2-3 I can see why she would want you to sign a buyer rep agreemgent so that she's not wasting her time since there are buyers out there that will use a local realtor for searching and then go directly to the listing agent to make an offer. Not saying that's what you're doing but that could be her reasoning behind wanting you to sign. I would just communicate to her what your expectations are and see if she's a good fit. You can always sign the buyer rep agreement for only properties she shows you.

Caleb Heimsoth · Answer

@Aaron Wortham. Most agents aren’t going to provide you with ARV, comps, etc etc.  it’s just not worth their time.  I do all my own due diligence and just use agents for contracts, seeing some properties etc.

sure you can find agents that do what you’re asking but they will be few and far between.

I would push back on the buyers agency agreement, but sometimes their broker requires it.  Just varies

Frank Wong · Answer

Hi Aaron,

I am mixed on this about your realtor.  In my case when my investor clients are in a similar situation where they send me properties for comps and opinion.  I know my market so well that I can just look at the deal and tell them if it will work or not.  Its case by case on deals but in those instances, I don't need to waste further time on it and I can just cut to the chase and give my clients what they need which is the answer to their pressing question.  "Will this deal work or not for me?"

On the properties that need to be explained further, I will break down the comps for them and rehab numbers and rent. I give my clients a complete analysis and do all the heavy lifting for them.  I guess in your case you have further investigating to do with your realtor. Yes, sometimes realtors are just flat out lazy and don't want to put in the work. I have no idea which type of agent you have.  Good luck.

Brad Baker · Answer

It sounds like she may not take you very seriously as an investor and might be brushing you off a little bit. I don't think there's anything too unusual here. She wants to lock you in as a client so if you purchase a property she knows she'll earn a commission. If it's not a good fit and you guys aren't hitting it off I'd just go find another agent to help you out.

Tyler Weaver · Answer

You didn't mention if you went over your criteria/investment philosophy with the Realtor to where they could have a position to say whether this makes a good investment for you or not.  If the Realtor was simply projecting their investment views on the properties, then what value is that to you?

Honestly sending over a contract to be your exclusive agent, after missing the mark on what you initially asked would have me shopping around.  It sounds to me that they have been burned before because they *thought* they were providing value, and then the investor went with someone else who likely actually provided the value they were looking for.

Aaron Wortham · Answer

Thanks guys - I appreciate the input. I hadn't thought of only signing for properties she is showing me. Might be a good thought.

Pat L. · Answer

Sounds like the one my son came across when he  was looking at a property. She insisted that he & his wife qualify first before she would even bother to show the appointment only home. He went with our agent, put in a verbal & paid cash.

Is this normal interaction with a realtor?

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