Real Estate Agent holding us back?

Question

Hi everyone, I'm a first-time poster and recently joined the BP community. My husband and I are starting our REI journey and have assembled a team in the area where we'd like to buy (not out-of-state, but 3 hours from where we live now where prices are more reasonable).

We have a great lender, got approved, and are ready to buy. The realtor we connected with, however, isn't as much of a go-getter.  She set up a search for us on the MLS based on what we said we're looking for, and we get notified of new listings, but she isn't giving us any recommendations. Whatever we label a "possibility" on her MLS site is mostly nixed for various reasons (she says rooms are too small, busy street, etc. - all of which may be valid.) While I value the insight, I would like to think she'd be more proactive and offer up options, instead of having us select properties online which she then continuously crosses off the list. It all feels like a waste of time.

We've been through the home search and buying process several times for ourselves, but never for an investment property. So, my question for you all who've been there/done that: What should we expect of a good real estate agent who understands investment properties and investors?

We have the capital, we have a lender, but none of that means much if there's no home to buy.

Russell Brazil · Answer

Go there and look at properties. Your agent could have very well have let you buy any of the ones you were interested in and not told you the flaws with them.

The fact is 99% of out of the area buyers who do not visit the location are not serious buyer. So there isnt really any reason for the agent to think you are different from any other out of the area "buyers." Go there and look at the properties like a serious buyer would

Michael Noto · Answer

As someone who deals with a lot of out of state buyers I could not agree more with @Russell Brazil. Proactively get into some properties with the agent so they can see you're serious and so they can get as feel for what you are looking for. It helps me a ton when viewing properties with clients because that is truly the only way for them to zero in on what they do/do not want to deal with.

Very rarely does someone's investment property search criteria stay the same as when we originally connected. Virtually every buyer goes through the process of fine tuning what their ideal investment is once they start touring properties.

Davey V. · Answer

@Carolyn Kincaid I invest out of state and would never use a “passive” agent.  My person hand picks properties and sends them to me, no lazy automatic emails.  You can get on Redfin and set those up yourself.

I once tried to use an agent similar to what you are describing 2 years ago…..to this day I still get properties sent my way from the automatic search.  She has never once reached out to me to ask if anything interests me.

Go with your gut and find someone else.  Bad agents are a dime a dozen, find someone that matches with your expectations.

Jonathan Greene · Answer

You have some great advice here and I agree with both views. You need to go and meet with the realtor and spend a day looking at the neighborhoods yourself and then knock out a couple showings with the agent. You might change your mind in person and as @Russell Brazil said, we don't usually trust the OOS buyer until they show us the money or the motivation to buy. You may have it, but you may not have gotten it across to the agent. Alternatively, this may not be the agent for you. Do they work with a lot of investors and if so, will you get any of the good deals? You want an agent who has their hands in off-market, knows wholesalers just for options, and also knows how to get on-market deals comped for you quickly.

Ryan Meuer · Answer

I had to go through several agents in almost every market we looked into before I found some that actually wanted the business.

I was basically saying "Here I am! I have money and I want to spend it with you!"

Even then, most of the agents were clearly not up to par. I gave them a few opportunities, and tried to clarify what I was expecting, but ultimately realized I don't have time to try and convince someone to do their job and moved on.  I'm fine with building a rapport, and growing business relationships, but I don't have days or weeks to convince people that I'm telling them the truth about investing in their market.  This issue should be settled by the first phone call with them.

That said, the conversation and process of moving on to another agent is still awkward.  How does the saying go? "A person's success is partly derived by how many difficult conversations they are willing to have." Something like that anyway. Good luck.

Basit Siddiqi · Answer

'rooms are too small''busy street'These don't sound like problems that you as an owner would have or that a renter would have.People need to live in homes and sometimes the rooms are small/big and sometimes the street is a busy street.If anything, the price that someone may pay in rent would potentially be less but can still make a great rental.

Carolyn Kincaid · Answer

Thank you all so much for your insight. It’s interesting to see the different perspectives - both from a realtor’s standpoint and an investor’s standpoint. I know I can glean wisdom from both, which is why I value these forums so much. And yes, it’s good to know I’m not the only one who runs into these roadblocks. What @Ryan Meuer and @DaveyV said hits home, so I appreciate y’all taking the time to help a newbie like me out!

Real Estate Agent holding us back?

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