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Updated over 1 year ago, 04/04/2023
Working with real estate agents
Hello,
I have a hard time understanding how to work with real estate agents when buying a rental property. I have read in books that having your agent when shopping for houses plays a vital role in successfully closing deals. However, when I'm looking at the properties on Zillow, Trulia, etc. they're usually listed by another agent, not the agent I am working with. So if I like a property I found on MLS and would like to submit an offer can I bring my agent even though it is listed by another agent? Can sellers have more than one real estate agent?
What are the best practices in this situation?
If a property is listed on the MLS; send the address to your agent and they will handle it from there (setting up appointments, making an offer, etc.). Usually, on these platforms you mentioned, they list several agents who are paying to be listed there (and are usually not the listing agent). You normally are not connected to the listing agent directly when you request a tour or more information.
Good question, there are typically two agents for each transaction. The sellers agent and the buyers agent. The sellers agent is the agent who lists the property for sale, this is the name that you see on Zillow, Trulia, etc. The buyers agent represents the buyer and submits offers to the sellers agent.
I think that the right agent is worth their weight in gold. If they know your strategy they can really help you get the perfect deal. Also I have had lots of great agents share their contacts with me for contractors, property managers, etc. that I wouldn't have had access to without them. But you for sure don't want to just go with the sellers agent.
- Tiamo Wright
- [email protected]
Most listings have their own agents and in CT they can help you write your own offer and walk you through the transaction(Dual Agency). But do you really want your agent and the sellers agent to be the same person? It is usually considered a conflict of interest, having your own agent represent you usually pays out dividends when negotiating an offer and actually getting it accepted, plus their expenses are paid by the seller so its free for buyers.
Your agent should be helping you identify these properties and contact the listing agent on your behalf once you're interested in seeing them. Your own agent should be your main point of contact in the transaction so you can get the most value out of their services.
@Irakli Khakhviashvili Get set up with a personalized MLS Home Search by a Realtor you trust. Zillow and other RE websites all pull their information from the MLS but only show you what they think you like and favor sponsored properties. First thing is to find a realtor you like to work with he or she should have a lot of experience with the type of properties you like they set up MLS home search show you the homes and can advise you about risk pricing and guide you true the transaction. You're buy-side agent is mostly paid out of the transaction true the MLS paid BY THE SELLER
Quote from @Charles Carillo:
If a property is listed on the MLS; send the address to your agent and they will handle it from there (setting up appointments, making an offer, etc.). Usually, on these platforms you mentioned, they list several agents who are paying to be listed there (and are usually not the listing agent). You normally are not connected to the listing agent directly when you request a tour or more information.
This is super helpful, thanks so much!
Quote from @Devin James:
Good question, there are typically two agents for each transaction. The sellers agent and the buyers agent. The sellers agent is the agent who lists the property for sale, this is the name that you see on Zillow, Trulia, etc. The buyers agent represents the buyer and submits offers to the sellers agent.
Interesting to know, thanks! Can one agent do both? Represent the seller as well as the buyer?
Quote from @Tiamo Wright:
I think that the right agent is worth their weight in gold. If they know your strategy they can really help you get the perfect deal. Also I have had lots of great agents share their contacts with me for contractors, property managers, etc. that I wouldn't have had access to without them. But you for sure don't want to just go with the sellers agent.
Great information. I am still in the process of learning, looking through listings, analyzing, etc. but finding a great real estate agent and connecting with them is on my to-do list for sure.
Quote from @Irakli Khakhviashvili:
Hello,
I have a hard time understanding how to work with real estate agents when buying a rental property. I have read in books that having your agent when shopping for houses plays a vital role in successfully closing deals. However, when I'm looking at the properties on Zillow, Trulia, etc. they're usually listed by another agent, not the agent I am working with. So if I like a property I found on MLS and would like to submit an offer can I bring my agent even though it is listed by another agent? Can sellers have more than one real estate agent?
What are the best practices in this situation?
I Never deal with agents, for me they provide little to no value ( I have done 100s and 100s and 100s of deals ) I suggest, you find the listing agent, you will get a better deal and the listing agent will know all about the property vs some realtor that has never been to nor knows anything about it and earns 3%. Not a bad gig LOL.
All the best
Quote from @Ryan Tessier:
Most listings have their own agents and in CT they can help you write your own offer and walk you through the transaction(Dual Agency). But do you really want your agent and the sellers agent to be the same person? It is usually considered a conflict of interest, having your own agent represent you usually pays out dividends when negotiating an offer and actually getting it accepted, plus their expenses are paid by the seller so its free for buyers.
Your agent should be helping you identify these properties and contact the listing agent on your behalf once you're interested in seeing them. Your own agent should be your main point of contact in the transaction so you can get the most value out of their services.
Thanks for sharing this. I am starting to understand how important it is to have your agent on your side.
Quote from @Irakli Khakhviashvili:
Quote from @Ryan Tessier:
Most listings have their own agents and in CT they can help you write your own offer and walk you through the transaction(Dual Agency). But do you really want your agent and the sellers agent to be the same person? It is usually considered a conflict of interest, having your own agent represent you usually pays out dividends when negotiating an offer and actually getting it accepted, plus their expenses are paid by the seller so its free for buyers.
Your agent should be helping you identify these properties and contact the listing agent on your behalf once you're interested in seeing them. Your own agent should be your main point of contact in the transaction so you can get the most value out of their services.
Thanks for sharing this. I am starting to understand how important it is to have your agent on your side.
THE LISTING AGENT. thats the key. You are doing all the work, you are the one on Zillow and others, you are the one finding the property, You do not need an agent showing up, again that knows nothing about the property and cost you money, Deal with the listing agents.
Good luck
@Irakli Khakhviashvili
I’ve bought 16 rentals by using the listing agents. I reach out to them and tell them I’m an investor, don’t have an agent and would like to see the house. They now get double commission since they’re representing the seller and buyer so they go all out for me. Many times they give me good intel about the seller’s situation, how motivated they are, work done on the house, previous offers etc. I leverage this info for my offers. I walk the house with them and tell them all my concerns. If I like the house, I text them a few hours later and lob out a low ball offer explaining the expenses needed to repair and update the house to get it rent ready. I’ve gotten all the properties I wanted by doing this except for one that I got outbid. People on here tell me I shouldn’t do this, but it’s worked for me and the listing agents go all out for me including showing me the house asap. Plus all the info they give me about the seller has been very helpful to me.
Quote from @Bob Stevens:
Quote from @Irakli Khakhviashvili:
Quote from @Ryan Tessier:
Most listings have their own agents and in CT they can help you write your own offer and walk you through the transaction(Dual Agency). But do you really want your agent and the sellers agent to be the same person? It is usually considered a conflict of interest, having your own agent represent you usually pays out dividends when negotiating an offer and actually getting it accepted, plus their expenses are paid by the seller so its free for buyers.
Your agent should be helping you identify these properties and contact the listing agent on your behalf once you're interested in seeing them. Your own agent should be your main point of contact in the transaction so you can get the most value out of their services.
Thanks for sharing this. I am starting to understand how important it is to have your agent on your side.
THE LISTING AGENT. thats the key. You are doing all the work, you are the one on Zillow and others, you are the one finding the property, You do not need an agent showing up, again that knows nothing about the property and cost you money, Deal with the listing agents.
Good luck
Can you suggest where do I find a listing agent? And that's I assume different than a real estate agent?
Quote from @John Morgan:
@Irakli Khakhviashvili
I’ve bought 16 rentals by using the listing agents. I reach out to them and tell them I’m an investor, don’t have an agent and would like to see the house. They now get double commission since they’re representing the seller and buyer so they go all out for me. Many times they give me good intel about the seller’s situation, how motivated they are, work done on the house, previous offers etc. I leverage this info for my offers. I walk the house with them and tell them all my concerns. If I like the house, I text them a few hours later and lob out a low ball offer explaining the expenses needed to repair and update the house to get it rent ready. I’ve gotten all the properties I wanted by doing this except for one that I got outbid. People on here tell me I shouldn’t do this, but it’s worked for me and the listing agents go all out for me including showing me the house asap. Plus all the info they give me about the seller has been very helpful to me.
Interesting perspective, thanks for sharing! So, you suggest just reaching out to the agent who owns the listing and work with them instead of bringing my own agent? But if the buyer doesn't pay a commission, then why is it a bad idea to bring your own agent?
Please go to your local real estate meeting
Good luck
Quote from @Irakli Khakhviashvili:
Quote from @John Morgan:
@Irakli Khakhviashvili
I’ve bought 16 rentals by using the listing agents. I reach out to them and tell them I’m an investor, don’t have an agent and would like to see the house. They now get double commission since they’re representing the seller and buyer so they go all out for me. Many times they give me good intel about the seller’s situation, how motivated they are, work done on the house, previous offers etc. I leverage this info for my offers. I walk the house with them and tell them all my concerns. If I like the house, I text them a few hours later and lob out a low ball offer explaining the expenses needed to repair and update the house to get it rent ready. I’ve gotten all the properties I wanted by doing this except for one that I got outbid. People on here tell me I shouldn’t do this, but it’s worked for me and the listing agents go all out for me including showing me the house asap. Plus all the info they give me about the seller has been very helpful to me.
Interesting perspective, thanks for sharing! So, you suggest just reaching out to the agent who owns the listing and work with them instead of bringing my own agent? But if the buyer doesn't pay a commission, then why is it a bad idea to bring your own agent?
Quote from @John Morgan:
Quote from @Irakli Khakhviashvili:
Quote from @John Morgan:
@Irakli Khakhviashvili
I’ve bought 16 rentals by using the listing agents. I reach out to them and tell them I’m an investor, don’t have an agent and would like to see the house. They now get double commission since they’re representing the seller and buyer so they go all out for me. Many times they give me good intel about the seller’s situation, how motivated they are, work done on the house, previous offers etc. I leverage this info for my offers. I walk the house with them and tell them all my concerns. If I like the house, I text them a few hours later and lob out a low ball offer explaining the expenses needed to repair and update the house to get it rent ready. I’ve gotten all the properties I wanted by doing this except for one that I got outbid. People on here tell me I shouldn’t do this, but it’s worked for me and the listing agents go all out for me including showing me the house asap. Plus all the info they give me about the seller has been very helpful to me.
Interesting perspective, thanks for sharing! So, you suggest just reaching out to the agent who owns the listing and work with them instead of bringing my own agent? But if the buyer doesn't pay a commission, then why is it a bad idea to bring your own agent?
This is very helpful. Thanks much!
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#1 Market Trends & Data Contributor
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Okay, I think this is SHOCKINGLY BAD advice for a first time buyer!!
Or for anyone who has done less than hundreds of deals! Granted, if you have done hundreds of deals, you really do not need an agent, you have the necessary experience and also paid for it along the way. At that point I don't understand why you don't get licensed, so you actually have access.
You absolutely should be represented as a buyer, you are totally outmatched without. Financially it is a no brainer, because it does not cost you anything, the buyers agent commission is already baked into the deal and paid for by the seller (technically by the listing broker).
The trick is finding a good agent, who comes with the necessary experience and not just a noob you met on Zillow. That's not so easy. Doing 5 deals per year for the last 2 years does not qualify as experienced IMO. Look for at least 25 transactions per year over multiple years. And if you are looking for an investment property you want an agent who personally owns investment properties and has been there, done that. You can find local agents in the top menu here on BP.
What is factually wrong is that you get a better deal when you don't have a buyers agent. At least in Wisconsin. What happens is that the listing agent get's both ends of the commission while representing the seller (fiduciary duties), because that is what the listing contract stipulates at the time the listing goes live on MLS.
And before I catch too much heat here, I should add: I have been an investor here in Milwaukee much longer than an agent and I have bought and sold many properties with agents that did not provide me with a lot of value! And today I have to deal with a lot of agents on the other side of deals I wish were more competent, sometimes fixing their mistakes.
All the more reason to have a strong buyers agent on your side. There is simply too much money at stake. Making the offer is the easy part, what happens after (and what comes before) requires experience, especially when things start going sideways.
So my advice, spend a little time and energy to actually find a good agent to help you find, analyze and buy, an agent who is actually competent and can advise you from understanding your local market dynamics all the way to negotiations and last minute closing questions.
- Marcus Auerbach
- [email protected]
- 262 671 6868
Quote from @Marcus Auerbach:
So my advice, spend a little time and energy to actually find a good agent to help you ...
Question! Where can one find a good agent Nowadays? The majority are college graduates who couldn't live up to their degree (they got it by class attendance) or the flunkies of some other trade.
I'd say skip the agents and learn on your own. Give that listing agent an intensive to sell you the property. Let them and their broker have the whole commission. Remember! They don't care about the seller. It's all about the %.
#1 Market Trends & Data Contributor
- Investor and Real Estate Agent
- Milwaukee - Mequon, WI
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#1 Market Trends & Data Contributor
- Investor and Real Estate Agent
- Milwaukee - Mequon, WI
Quote from @Jack Deer:
Quote from @Marcus Auerbach:
So my advice, spend a little time and energy to actually find a good agent to help you ...
Question! Where can one find a good agent Nowadays? The majority are college graduates who couldn't live up to their degree (they got it by class attendance) or the flunkies of some other trade.
I'd say skip the agents and learn on your own. Give that listing agent an intensive to sell you the property. Let them and their broker have the whole commission. Remember! They don't care about the seller. It's all about the %.
This industry has a huge drop out rate, about 85% quit after the first year and from who's left another 80% in year two. The actual value of an agent to a client correlates with experience, which may not be necessary in a smooth transaction, but becomes very important when things start going sideways.
The average agent is involved in some 8 transactions a year, which means the majority does less. IMO agents who doe less than 12 deals per year don't know what they are doing, about 24 deals per year would be my minimum for proficiency (and to make a living wage after expenses).
The reason why I got licensed (as an investor) is similar to your suggestion, but I quickly found out that you don't know anything without doings lots of deals, so that's why I started working with investors and then later building a team, so I can personally focus more on luxury residential (even though we still work with a lot of investors).
Last year my team closed about $50m in transactions, making us one of the top 1% teams in Milwaukee. We are a small team, but everyone has a background in either investing or flipping and remodeling, which is a key knowledge in my opinion.
I disagree that it's all about the money (and therefore beneficial to work with the listing agent). While some agents operate this way, they never go very far in this industry. You can only grow beyond a couple deals without repeat and referral business - and that is something that you only get when you truly care about your clients success. In fact, when you detach yourself from the outcome and focus on supporting your clients instead, your stress level as an agent goes way down, you focus on the service you provide and on building life long relationships: people come back and they bring friends and family.
Also, I have 3 listings go live this week in nice parts of town and I expect some of my personal clients being interested in at least one of them - if they want to write an offer I will refer them to a strong colleague to write the offer and represent them, because I have a problem with double representation. I can only serve the interests of one client, otherwise you get into a conflict of interests quickly.
So how do you find a good agent? Not easy.
I would say here on BP (look in the top menu) and don't work with the first one, but take the time and interview a few. You will know when you found a good fit. But you will have to put some effort into it. One of the first questions I would ask an agent as a young investor is: how many transactions have you closed in the last 12 months and do you personally own investment properties?
- Marcus Auerbach
- [email protected]
- 262 671 6868