Real Estate Agent
Market News & Data
General Info
Real Estate Strategies
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hospitable-deef083b895516ce26951b0ca48cf8f170861d742d4a4cb6cf5d19396b5eaac6.png)
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_trust-2bcce80d03411a9e99a3cbcf4201c034562e18a3fc6eecd3fd22ecd5350c3aa5.avif)
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_1031_exchange-96bbcda3f8ad2d724c0ac759709c7e295979badd52e428240d6eaad5c8eff385.avif)
Real Estate Classifieds
Reviews & Feedback
Updated 5 months ago on . Most recent reply
![Daniel Vroman Rusteen's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2977930/1711721127-avatar-danielvroman.jpg?twic=v1/output=image/crop=1080x1080@0x0/cover=128x128&v=2)
Help - Is the RE agent actually hurting me?
I started interacting with a RE agent months ago when I began looking for an Airbnb investment. The agent has been communicative the whole time (something that I can say about 5% of agents in my limited experience) so I'm a fan!
But as I've read more about the process, including a BP published book by Brian Green 'Long Distance Investing', I'm wondering if not only is a RE agent not needed for me, but is likely to work against my favor.
Why?
First, in terms of negotiating, I have experience buying a home outside the USA and I noticed the RE agent, who I assume was a negotiating expert, didn't negotiate very well. I lost that deal, and ended up buying another home directly from the listing agent. Negotiating is about what words you use, when you say it, etc. Back to today: I got off the phone with my agent, where I communicated how I wanted to present my offer (in summary: if the seller rejects my original offer, I hope they'll make a counteroffer, but if I decline that counteroffer, I will move on to make an offer on the next property of the few I am interested in the market - this is to avoid a back-and-forth and the property had been listed for a year with a 25% price cut in that time). At the end of the conversation with my RE agent, I asked them to repeat back to me how they'll present my offer, and nothing. So then I repeated and the agent still missed some points of how I wanted the offer presented.
Second, coming from the BP book, I am coming in with an offer well below asking as an investor. If I deal with the listing agent directly, they'll get 2x the commission, so even if my offer is below asking, they'll be on my side to get it accepted. Or is that not how it works in reality?
Regarding security with buying the property, I can't say I'm too worried about that. I'll still have a lawyer review everything plus the title company. Or, is this not a good idea?
I feel bad telling my RE agent that I will negotiate directly with the listing agent now after all she's communicated with the listing agent already. Is this a very bad idea? Would the listing agent not want to do business with me because I've done this? Obviously, my agent will not be happy, is there something I can do for her to make her whole?
PS The reason I went this far with my current agent is that I am investing out of state and my rationale was having an extra person out there who could possibly help me. I don't know if the agent would help me, or would be done with me after the close. I'll also have a cleaner, handyman, and anyone else I can form these relationships with while I'm out there.
Thanks in advance with any help and reading this lost post!
Most Popular Reply
![Matthew Irish-Jones's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/756499/1621496752-avatar-matthewi7.jpg?twic=v1/output=image/crop=337x337@0x0/cover=128x128&v=2)
- Real Estate Agent
- Buffalo, NY
- 2,314
- Votes |
- 2,325
- Posts
Quote from @Daniel Vroman Rusteen:
Quote from @Matthew Irish-Jones:
Quote from @Daniel Vroman Rusteen:
I started interacting with a RE agent months ago when I began looking for an Airbnb investment. The agent has been communicative the whole time (something that I can say about 5% of agents in my limited experience) so I'm a fan!
But as I've read more about the process, including a BP published book by Brian Green 'Long Distance Investing', I'm wondering if not only is a RE agent not needed for me, but is likely to work against my favor.
Why?
First, in terms of negotiating, I have experience buying a home outside the USA and I noticed the RE agent, who I assume was a negotiating expert, didn't negotiate very well. I lost that deal, and ended up buying another home directly from the listing agent. Negotiating is about what words you use, when you say it, etc. Back to today: I got off the phone with my agent, where I communicated how I wanted to present my offer (in summary: if the seller rejects my original offer, I hope they'll make a counteroffer, but if I decline that counteroffer, I will move on to make an offer on the next property of the few I am interested in the market - this is to avoid a back-and-forth and the property had been listed for a year with a 25% price cut in that time). At the end of the conversation with my RE agent, I asked them to repeat back to me how they'll present my offer, and nothing. So then I repeated and the agent still missed some points of how I wanted the offer presented.
Second, coming from the BP book, I am coming in with an offer well below asking as an investor. If I deal with the listing agent directly, they'll get 2x the commission, so even if my offer is below asking, they'll be on my side to get it accepted. Or is that not how it works in reality?
Regarding security with buying the property, I can't say I'm too worried about that. I'll still have a lawyer review everything plus the title company. Or, is this not a good idea?
I feel bad telling my RE agent that I will negotiate directly with the listing agent now after all she's communicated with the listing agent already. Is this a very bad idea? Would the listing agent not want to do business with me because I've done this? Obviously, my agent will not be happy, is there something I can do for her to make her whole?
PS The reason I went this far with my current agent is that I am investing out of state and my rationale was having an extra person out there who could possibly help me. I don't know if the agent would help me, or would be done with me after the close. I'll also have a cleaner, handyman, and anyone else I can form these relationships with while I'm out there.
Thanks in advance with any help and reading this lost post!
LOL brother. You asked your agent to repeat back to you? Sounds like neither you or your agent really know what they are doing.
A good agent knows the market and provides analysis with rental comps, sales comps, projected maintenance expenses, projected CapEx... The data should be transparent so you can verify what supporting data was pulled.
If you worked with our brokerage. I would be telling you how many registered offers there were, and what percentile your offer falls into with chances of winning. If its a competitive situation and you wanted to submit an offer with a sub 20% chance of winning I would submit a verbal offer, I would not waste my time writing up a contract.
A good investing agent is going to present hard data to work off of. There are no secret negotiating tricks, low ball offers with love letters, or highly intelligent investors from afar that can win bids due to awesome use of language. Sellers are sophisticated enough to pick the best offer, they only see the price and the terms, any other negotiating tactics are a waste of time.
Your agent is very responsive because you may be their only client. I whole heartedly disagree with everything you said about negotiating. It has nothing to do with words, or when you say them.
Very interesting about the negotiating. I would venture to guess many RE agents would disagree with you on that. At least, I disagree. I assume(d) they think they are good negotiators, or is your thinking common in the industry that negotiating is null and void, what matters is only the money. In that case, you can text over or email an offer? Makes no difference.
Its not just the money that matters its money and terms.
1. Price
2. Contingencies
3. Financing
4. Deposit Amount
Those are the 4 items you have to play with that do the negotiating. Besides that a good investor agent will come with some built in negotiating tactics on your behalf.
For example: A well known and accomplished agent will be known to work with solid buyers who are capable of closing deals. They 100% represent their clients best interest, but they will not over negotiate petty points on a home inspection. When these agents come to the table with qualified buyers they can get the property for less than other inexperienced agents and buyers.
Negotiation is done with numbers and volume. When I have a client from out of country who I have met for 30 seconds ask me to work for less than my going rate, I decline. When I have a client who has given me millions of dollars of business and referrals ask for a break if I am a dual agent or if the sale price is in the millions I happily oblige.
When I buy properties personally my negotiation tactic is to look like a sure thing to the seller and to have a reputation as a real investor who has the Capital and will close. I also personally do not over negotiate during due diligence unless there is something unforeseen that comes up that I could not have caught on my walk through.
Sellers and sellers agents knowing your agent is the real deal, represents real buyers, has great business systems in place and has done the analysis to justify the offer is the total package of negotiating.
What you say, when you say it, and how you say it, is really not important.
Please understand this is my humble opinion only!
- Matthew Irish-Jones
![business profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/marketplace/business/profile_image/1673/1720684999-company-avatar.jpg?twic=v1/output=image/contain=65x65)