What to do when your agent is unresposive?

Question

Hello All,

I'm looking to flip my first house. My agent is a family friend that I've known for a while. He's showed me a few houses and explained alot of the acquisition/flipping process to me thus far. I finally found a house I was interested in putting an offer on. He told me on Wednesday that he would have a contract for me on Thursday. I didnt hear from him so I reached out to him on Saturday, nothing. I finally heard from him today (Monday) that he was waiting for seller disclosure before we could make an offer but I would have liked to have been told that before Monday when I was expecting to hear from him Thursday. My family says I should just find a new agent but I was wondering if that was the best option. Please help BP!

Thanks,

Steu

Troy Sheets · Answer

@Steuart Wright

I'd have to say you need a new realtor. It's not going to get better with time, trust me. I've ditched a couple already and the lady I'm working with now is unbelievably responsive and has excellent communication skills. This woman has driven properties to determine ARV/comps for me over the weekend and gotten back to me by Sunday evening after shooting her a text about a property on a Saturday.

You want someone that provides excellent customer service and communication and is quick as well as thorough. You're not likely to find a realtor that will have these traits, be investor friendly, super knowledgeable about what you're trying to do, be an expert in your geographic area, etc. The most important traits for an agent, to me personally, in descending order, are:

• Responsiveness and quick turnaround (so you don't lose deals). I've generally done all my research before I see a property with my realtor. I've walked the block, talked to neighbors, ran my own comps and scouted out the house and neighborhood as much as possible and only need the agent to let me in to see the inside of the property. I try not to waste their time so I pre-scout. Nobody is going to stick with you through 50 showings and no sale.
• Thoroughness and attention to detail, again, so you don't lose deals over missing paperwork, missed deadlines, important MLS info, etc.
• Excellent and clear communication.
• I like to have the agent run comps to make sure I'm not way off but I trust my research, not theirs. Nobody knows (should know) your market like you do. It's also nice to have someone with half a brain to bounce ideas/concerns off of such as how a vacant property next door will affect value or how buyers/renters will perceive a feature or lack thereof.
• Knowledge of REI, especially what you're trying to do. Low on my list because I don't care if they like or dislike flips or 4-plexes, as long as the above criteria is met I'm a happy camper.

The last agent I had wrote like a 10 year old via email and text, mumbled and trailed off over the phone, forgot paperwork with offers, was terrible at getting back to me with comps and rarely even brought the MLS printout let alone comps to showings! Once I find an MLS listed property I'm interested in, I want to see it same day, worst case next day. Last agent was 3-4 days out scheduling showings. Unacceptable. If it's a deal, it probably won't last that long, especially if the price was just reduced, it hit the market priced low, etc.

Never forget, you're the customer, demand good customer service and if you're not getting it, move on. I plan to make my realtor a nice living and am looking to build a business relationship that will last a long time, but I also expect them to work hard for me. Let us know how it goes!

Troy Sheets · Answer

Joe,

I looked at 8 properties or so with the last realtor. I offered on 3, got 1 accepted but it fell through after issues popped up in the home inspection that the seller wouldn't work with me on at all. The main issue was the brick facade was pulling away from the house, I voiced my concern to my realtor before putting in the offer, the listing agent said they had it "looked at" and it was fine. I knew it wasn't so I had a home inspection done, the inspector called for star bolts to arrest the movement or full replacement of the brick facade. The seller wouldn't cover the star bolt installation and brick repair ($4k-$5k) so I walked. That was a good point to break from this realtor for the reasons stated above plus a few others that I won't get into here.

My current realtor showed me 2 houses, I offered on and am under contract for 1 and am actively looking for the next one. I agree with what you're saying regarding making offers, I already know what I'm willing to pay before walking through a house, if it meets expectations I make the offer on the spot minus any repairs or surprises. I don't need 24 hours or even 24 minutes to put an offer in. I'm also extremely flexible on times to look at homes, I could go at 6am, noon or 6pm, whatever works for my realtor. Also, 99% of the homes I'm looking at are vacant and on lockboxes so they're easy to show. If a realtor is hungry they can generally make time the next day to show you a vacant house if you're flexible.

Account Closed · Answer

I hope you used the agent to close the deal after they did all the running for you. Why would you want to see the MLS printout so you can see what offers been put in on the home? Most agents want to let you see the MLS printout. Most agents have tons of customers, and it might be booked up and cannot  jump when say, but most good agents will show the property in 24 hours. Here is where a lot of agents get upset, they rush to show a property to an investor and the investor never call back or need 3 or four days to make an offer I think if an investor needs a same-day  showing should make a written offer the same day. My 2 cents,

Ryan Watson · Answer

Sounds like alot of people touched bases on some good points.

IMO, if you're a serious businessman, no matter at what stage you are, you're time is important, and you dont have time for mickey mouse games. I would stop calling him and move on. His position as a family friend will make him more comfortable than the others, so hes more likely to slack off. Atleast thats how I look at things outside of the RE world, so if i had my hands dirty in a deal, it would be more important than ever to run a tight ship.

Steuart Wright · Answer

Thank you for all your replies thus far this is all great advice!

@Monica Breckenridge we haven't signed any agreements and the home was built before 1978 but he made it seem like he needed the disclosure before we could submit an offer. I'll have to check the state specific rules for Philadelphia, Pennsyvania.

@Jeremiah B. all great advice. This is the first time he's been slow to respond but then again we haven't done much yet I don't want to become further committed and find out this is a trend, but you make a good point, he's been showing me the ropes so I'm  hesitant to just cut him.

@Bee Tree thanks this is great, I think I'll have that sit down. Wish me luck (he's about 6'5" 260)

Verran Jones · Answer

Steuart, one of the most important things for us as investors is the team we put around us. Everyone on the team needs to have the pulse and direction of the investor (you). So, with that said your family is part right (get another agent), I say have a sit down and explain how vital it is for him to decimate information to you promptly. Also, I have three agents on my team and all of them have different talents so expand your team.

Verran

Jeremiah B. · Answer

Hey Stewart - A few thoughts:

• You gotta do what's best for you.  This is your business, and if something is not working, it needs to be fixed or cut.
• People have things come up.  Is this unresponsiveness a trend, or an isolated thing?
• Some would say that you should try and manage a RE's agent behavior (i.e. express your displeasure, and let him fix it moving forward) rather than just cutting him... and if he's been showing you the ropes, that's a courtesy that you should consider giving him.
• My wife says that delays from RE agents should be counted in working days, not total days.  I disagree, but there you go.  :)
• It's odd that you need the disclosure prior to putting an offer.  That may be a state-thing, or a flip-thing or something, but that seems backwards and wonky to me.

Monica Breckenridge · Answer

You need somebody that is on top of things and can respond quickly.  If your agents drags his feet your could lose the deal.  Do you have a signed buyers agency agreement with him?  Also the only disclosure you should need first is the lead based paint disclosure if it was built before 1978.  This needs to be signed by all parties prior to going under contract.  It shouldnt hold up submitting an offer.

What to do when your agent is unresposive?

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