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Updated over 4 years ago on . Most recent reply
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Why do realtors work with out of state investors?
I am an investor, but only have a vague idea about the inner workings of a real estate brokerage. My question is: what are the incentives for a realtor to work with an out of state investor? It seems to me that out of state investors, due to their usually particular requirements and extra support needs, take more time and effort than the typical retail buyer. Yet because an investor is usually interested in low to moderately priced properties which often have physical or title problems, the realtors commission is much lower than for a typical retail sale. So why would a realtor be interested in working with an out of state investor?
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At the end of the day, they still make a commission! And investors are repeat buyers. I've also seen some out of state investors pay their agent a little more commission.