How to Know if the RE Agent will help you and not take advantage of you?

Question

Theres a lot I can still learn about this. I got in contact with one familiar agent so far, but what kind of questions should I ask? What should I watch out for so I wont get ripped off? I got a little ripped of before but this is a property we're talking about now so I hope to make it great as possible since it is my first time. So far I am looking at nothing over $150k, based on what the lender said and I barely have a down payment with an FHA min. of 3.5%... My realtor says I most likely have to buy a single family home and won't be able to get a condo or duplex because of the FHA and my small down payment, so I guess my idea of that is out for now. I would still be happy with a good property with more bedrooms to rent out at least. So theres my Info and I hope to hear from some of you men and women, Im a newbie so please help me to know what I need to know, Thank you.

Account Closed · Answer

Hi Arthur. Be wary of agents who try to rush you or do not want to talk about your long-term goals. You want to become an investor who owns multiple properties, right? Then you are building a team to help you achieve that goal. You will need an agent, loan officer, maintenance and repair people, and probably a property manager who are all reliable and understand that your best interests are their best interests. Interview people with team-building in mind.  Good luck!

Mark Ferguson · Answer

It is a much different game in real estate. If you use a buyers agent that agent will be working on your behalf, unlike a car salesman who wants to sell for the highest possible price and is working for the seller.

Arthur Moreno · Answer

Well It was my fault not really understanding enough but I feel I got charged way over what I should have payed for my first car from a dealer, I didn't have as much credit but now looking back two years ago I still feel I could have got a better deal. thats an example and I know it was my fault, I was just excited to get a car from a dealer that would build credit ( I traded my first car in but that one didn't build credit). Now that I want to get my first property, even though I am not a big earner and I have the minimum down payment, I still want to go through this with more confidence, knowledge and the patience to get the right deal for me. I know Its my chance to get the ball rolling as smoothly as i can to my future so Im soaking whatever good knowledge I can.

Mark Ferguson · Answer

Arthur, how do you feel you were taken advantage of earlier?  That could help us give more specifics on how to avoid the situation in the future.

Arthur Moreno · Answer

Nice tips Xing! Thank you. Im thinking if i show the agent I trust more than doubt, I will get better results as long as I'm clear of what i want and build that relationship.

Xing Zhu · Answer

I have worked with a number of agents in the past. I have to say I liked everyone of them for their work ethic and generosity.

I never felt I was taken advantage of. My general points in dealing
with my agents are:

(1) Try to get from them the facts I need rather than opinions.

(2) Make clear to them what I want them to do for me.

(3) Be generous with them and in time your generosity will be returned.

(4) Think more about a long term working relation than immediate interest.

(5) Take more responsibility for actions and do not blame the agent for small errors.

Recently, an agent of mine send me an email saying a nice piece of property
just hit his desk. I missed the message that day and the next day when I asked him, he sounded a little bit apologetic that he bought that property himself. He offered that next time if I want to sell a piece of my property he would find and match a buyer for me without taking a commission.  I felt that it was my own fault because I didn't check my email on time. He had a large pool
of buyers for this type of properties. I really appreciated that he sent me the information first before he himself bought the property. The market was so hot that a delay of one day was too much sometimes.

Arthur Moreno · Answer

Awesome, Thanks to you all that have posted, I'll be using this advice to be more aware thank you.

Arthur

Steve Babiak · Answer

I'll throw out two points.

Point # one.  Avoid signing any agreement that stipulates that they will be your exclusive buying agent.  As an investor, you will over time be wanting to possibly work with more agents, but that exclusive agreement locks you to them.  I have posted in other threads on this same thing, so do a search.

Point # two.  The agent takes you to houses that YOU want to see, not just the houses that the agent wants to show you.  You see, investors look at fixers and low priced properties, and those go for less money so the commissions are smaller; the agent showing you move-in ready properties will be getting a higher commission on those with their higher selling price.

Lynn McGeein · Answer

Arthur, talk to your lender about what programs are available.  It was my understanding that, unless you're borrowing money for the down payment, FHA will allow an owner-occupied duplex with the same % down payment as single family home.  If you spend some time speaking with lenders about your options financially, it will give you more of a comfort level when dealing with any realtor.  Also, some states have first-time buyer programs where they will help you fund your FHA down payment, so basically a 0% down loan.  I'm not sure they do this unless it is a single family home, not a duplex, but it's worth researching.

Arthur Moreno · Answer

Thank you so much Nicole I appreciate this. I will call another agent to ask a few questions, as for right now, the lender that my realtor hooked me up with has got a pre-qual letter ready to go, I am excited about that it feels good lol. Thanks again Nicole

How to Know if the RE Agent will help you and not take advantage of you?

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