What to tell REA when just looking

Question

Although we won't be ready to buy a multifamily until June, my husband and I want to start looking at properties just to see what's available, what we should expect when we're ready in June etc.

What should I tell a real estate agent when we want to look at a property that we have zero intention of buying (unless it'll still be available in June...). I fear that if I'm upfront, they won't give me the time of day. Thoughts?

Dawn Brenengen · Answer

Just be honest about your timeline, and tell them you appreciate their patience.  I have no problem waiting forever for someone to be ready to buy after we have looked at homes together, as long as they come to me when they are finally ready.  What I do have a problem with is spending a year with someone only to find out they have bought without an agent or with another agent.  Fortunately, that is rare. Just show some loyalty and appreciation, and the agent will show it right back to you.

David Fritch · Answer

I would suggest staying away from newer agents and low volume agents as they will be very tempted to be pushy and get frustrated with your timeline because they need the sale badly. A seasoned agent, often they have assistants as well, understands the idea of a "sales pipeline" and they understand that often the seeds they are planting today won't be reaped until months down the road. They should be willing to sit down with you in their office or take them to lunch and make a good faith verbal commitment to use them if you connect well.

I would also look for an agent who specializes in working with investors. If they own multifamily properties themselves or are active on Biggerpockets, that's a good indication. Also find an agent who can setup their mls to automatically email you new properties that come on the mls which fit your criteria. This will only take them a few minutes to set up. If you need to tweak your criteria email them about it and they or their assistant will go in and make the changes in a few minutes, no big deal.  Then you guys can look at the pictures, read the listings, ask questions on BP, crunch the financials, drive by and get to understand you market and your target properties better without feeling like your bugging them until about 6-8 weeks before your ready to buy which is the time to meet with them again, line up your financing and start watching the market even more closely.

Frankie Woods · Answer

Great advice on this thread!  I would be upfront with the agent because you really don't want to burn any bridges if you are wanting to be a serious investor in your market.  Your head is definitely in the right place, so don't be turned off if several agents turn you down.  Eventually, you will find one where the situation would be a win-win.  Good luck!

David Hunter · Answer

I can't tell you how many times someone has said they're just "looking" and aren't ready to buy until said date.  Then, we show them a property they fall in love with and buy it right then and there.

So, if they're a smart agent, they'll take your business.  Heck, go get a pre-approval letter so they know you're serious.

Steve Vaughan · Answer

If an agent starts parading future buyers through my multi-families, disrupting my tenants and making me give notices to enter for nothing, I would no longer allow said agent to look at anything of mine.  You aren't only inconveniencing the agent.  Thought I'd throw that out there.

Joel Owens · Answer

"Although we won't be ready to buy a multifamily until June, my husband and I want to start looking at properties just to see what's available, what we should expect when we're ready in June etc."

Are you paying all cash??

If not the debt and price market now to what it will be then is completely different.

What you are basically saying is between now and then you want to learn as much as possible.

Completing a transaction versus training up a new client are miles apart in terms of time and energy spent for return.

I do help my clients on the commercial side but for my time earn six figure checks per deal in commission.

A smart broker/agent should be analyzing how much time they spend with you versus the return. If for instance your first property is a multifamily for 300,000 versus one for 2 million then the return is miles apart.  Do you have the money today to invest or is it only if multiple events occur between now and June?? If it's tied to a sequence of events then the odds of that happening and creating a sale are greatly diminished.

Brokers/agents do not look at clients as numbers generally but at the same time especially ones that are investors understand a return on their time. Are you going to give this agent a personal financial statement to show where you are today for liquidity, job and business income, and net worth?? This would help the broker/agent understand how far you need to go to be able to accomplish what you want in June.

I analyze every client that approaches me for commercial. The serious ones have no problem with it and want to get started right away.

If someone told me they were not buying for 7 plus months but wanted me to spend all my time day and night teaching them how to invest I would politely say I do not have time for that.

James Wise · Answer

Just be honest and up front. Some will shy away some wont.

Michael Jobe · Answer

Find an agent who is patient enough to wait until you're ready to buy. Perhaps sign a non-exclusive buyer's agency agreement specific to multifamily properties in a given area.

Joel Owens · Answer

Yeah if you inconvenience a seller just because you want to learn on their dime that isn't going to fly.

A seller or their listing broker should properly screen for ability of the buyer to purchase and time line to act.

If they are a lookie loo it should be a no go.

My buyers get property tours of commercial assets but we are writing offers and buying today.

Mark Brian · Answer

I feel most experienced agents would prefer that you be upfront about your timeline for purchasing. I know I would

What to tell REA when just looking

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