What are the Questions you should be asking choosing a Realtor

Question

Hello BP Family!!

What are the questions you should be asking while you're selecting a realtor to work with. I am new to this and any input will be greatly appreciated.

Thank You!

Bianca G. · Answer

Thank You so much Tom for your feedback that helps a lot. I am looking into buying our first buy and hold rental.

Thank you so much for all your help! I really appreciate you taking the time and responding. I am also interested in the Tampa market I will definitely keep you in mind if I go that route.

Thanks Again!

Bianca

Tom Parris · Answer

Hi Bianca,

Invite them over to the property, they can do research on it from a computer, but being in the property and understanding what you've improved, or issues that have come up. The Realtor should know your neighborhood. Interview as many agents as you see fit. Big name brand isn't always the right answer, because they hire anyone.

You want to first ask yourself, what are you trying to accomplish by selling this house? I don't know if you're an investor, or just a regular person looking for advice. So are you trying to make a certain figure on the sale as your bottom line? Do you need to sell by a certain time?

You want to ask the Realtor about pricing, and time on the market. Time on the market is one of the more important things, because after your property sits on the market for over the average time for your neighborhood, the property isn't priced well. Your first 2 weeks are the most important. Ask them to take you to see the comps, that's the competition, this helps them, and you realize what your home is really worth.

You're going to be paying them a substantial amount at closing, so you need to ask what is included in the listing? I include a pre-list inspection, so I can figure out the issues and have them resolved before listing, or to aid in the Seller's Disclosure. I also include professional photos. Photos drives traffic to your home.

What exposure is your home going to get? Once it hits MLS, it goes to 143 different real estate websites. So what else? You want to hear social media marketing, and open houses.

You want to call your mortgage company and ask for a mortgage payoff. You share your mortgage payoff with your realtor who will go to a title company and ask for a ALTA statement. This will show what you owe on the home, commissions and all closing costs. The bottom line is the important line. If you have a goal of what you need to sell this house for, comparing that to your bottom line will allow you to see how flexible you can be if there's a repair issue or an appraisal issue.

Hope this helps.

Bianca G. · Answer

Thank you So much Eric those are some good pointers.

I appreciate it.

Thanks

Bianca

Bianca G. · Answer

Thank you so much Stephanie, this helps me a lot... I really appreciate the key notes and I also appreciate your time.

Thanks Again!

Bianca

Stephanie Dupuis · Answer

I'm an investor and Realtor. Some good advice above.

If I were in your shoes, I'd interview at least three Realtors. If the Realtor asks you to meet at their office for a buyer meeting (consult meeting, anything like that), it's a good sign. Let them interview you and take your time to ask them as many questions as you want and need. Assess their ability to explain to you and tap into what you need. Be very specific with them. Explain how you want to invest (for cash flow, etc.). Few Realtors (or agents - and google the difference, I think it's important as I see a huge difference in my field between Realtors and non-Realtors. The Realtors are more educated on real estate, local laws, etc.).

Ask them how many transactions they've closed in the last 12 months. Number of transactions is a better gauge of experience than years in the business. I know agents who have been in the business 30 yrs but do one transaction a year and suck. And I know agents who have been in the business only a few years but do many transactions a year and know their subject well.

Regarding investing and agents...reality is that very few agents know how to find good rentals, what to look for, and I only know a small handful (if that) who know how to calculate cash flow, etc. So I recommend you not rely on the agent for this stuff. Be strong yourself in these matters. Use your agent to do the paperwork well and find on ewho understands and has experience with many different types of transactions (REO, short sale, estate, etc.). And find one who won't baulk at different types of financing methods. For some reason, I see even experienced agents not understand the power of private loans (they're equivalent to cash in my area), rehab loans, or other types of financing you may eventually start using.

it also is a bonus if the agent you use is able to understand what types of property will finance in which ways. For some reason, I run into many agents who struggle with this. You will likely learn it faster than them. Google the type of financing you have and learn what types of properties qualify. This way, when you're viewing properties, you understand your changes of an offer going through to closing. For example, FHA and VA financing require properties that are turn key system-wise, but neither loan type cares about cosmetics. No exposed wood, properties systems must be functional (heat source, roof, etc). The electrical panel needs to have a main switch. Whereas, conventional financing has more leeway with condition.

Eric Delcol · Answer

@Bianca Gandhi

As some of the other replies have noted -

You want someone who knows what you're looking for.

Some sample questions -

Have they dealt with investors before?

Do they own investment property themselves?

Do they have experience with short-sales, REOs, foreclosures? (if you're wanting to consider those)

Bianca G. · Answer

Thank you so much Eric and MIke. I appreciate it!

Thanks

Bianca

Eric Beise · Answer

@Bianca Gandhi If you are just buying a property (not selling), find a Realtor who understands your goals and is exceptional at explaining each step of the process. You really shouldn't have to ask many questions, what you really want to do is assess the questions they ask you. They should ask you about your life stage, what your goals for the property are, how long you want to hold it for, how it fits into the rest of your portfolio, etc.

In summary, find someone that shows genuine interest in you as a person. Find someone you trust.

Mike Cumbie · Answer

Or just ask if their name is Mike, if so go with them :)

Bianca G. · Answer

Thank you Zach, sounds good. will keep you posted!

Thanks

Bianca

What are the Questions you should be asking choosing a Realtor

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