How Hard Should a Realtor Work For You?

Question

I am new to the world of real estate and am currently working on purchasing a commercial property in a state that I don't currently live. The plan is to eventually move to that area but as of right now I am working on the deal from a distance. My question is, how hard should my realtor be working for me on the deal?

I have never used a realtor before so I am not sure how much to expect from them. My current experience has left me wondering if my realtor really has my best interest in mind.

I found my current realtor based on a referral and didn't really shop around as the market I am looking to buy in is very small and rural, meaning there really isn't a lot to chose from. I really do like the realtor and their personality fits mine well, but I feel like I am constantly having to push them for help. I realize there are different levels of work ethic based on the region of the country and some places people just move slower, but it has been painfully slow. If I don't call to check in every week or two I don't think they would contact me at all. Is this normal? Does the buyer have to drive the deal or does the realtor work on the best interest of the buyer?

I have made it apparently clear that we have the funding and are very committed to the process so there shouldn't be any hesitancy on their part in wondering if we are serious or not. How would you move forward?

Paul S. · Answer

I agree with Catherine. Maybe there is nothing to report back so they haven't contacted you. Make it known you need more communication. How long have you been waiting for answers? Can you put an offer in and put a contingency in the contract related to those questions?

Michael Ablan · Answer

@Tyler Hofer - What price range are you looking in? $30k? $100k? $150k?

We get paid 1-3% of the sale price for our efforts. That amount is then reduced by broker fees, expenses and taxes.

How much is your realtor being paid for their efforts? 3% of a $30k house is $900. After everything the take home is maybe $300-$400?

Everything is a numbers game (for everyone involved). Make sure everyone is getting well paid for their efforts and you should see a dramatic increase in motivation and attention.

Paul S. · Answer

Has this person seen your proof of funds to know you have the means to make a purchase? Are you a strong buyer? It's a very competitive market in some areas and realtors may give more attention to stronger buyers. What are you calling to check in on? Is the realtor sending you listings from their local MLS? Are they going out and seeing properties and reporting back? Without all of the details it's hard to give exact advice but one thing is for sure, you should let this person know how you are feeling and let them know you might have to reach out to other agents in the area.

Catherine Emert · Answer

I would suggest a phone call to get on the same page. A lot of times throughout my career as a broker and throughout many roles in real estate prior to becoming licensed there were situations where I personally thought I was doing everything a client wanted me to do but they were unhappy. Once they pointed out what they were expecting things were easily fixed and everyone was happy. As a broker we deal with a lot of different personalities, unless we know you want a lot of communication, or very little as some want it's a balancing act. A conversation never hurts though. You might be surprised by the results.

Mark H. Porter · Answer

Getting to the deal should be a whirlwind of proposals and counter proposals. This takes a week at the most. Where are you in this cycle.

Once you’ve gotten to an agreement there are outside forces that run the show - banker, lawyers, appraisers, inspectors, all the other due diligence. This takes weeks.

Tyler Hofer · Answer

@Jonathan Greene I know the realtor knows I am serious about the deal. I drove three thousand miles round trip to see the property and have been back multiple times to network in the community. They have never asked me for any documentation so how would I know to give them anything?

It’s good to know that things move more slowly in small communities. I think there are multiple factors at play for the delays and I’m not placing it all entirely on the speed of the realtor.

Jonathan Greene · Answer

This says it all.

"I haven't shown them financial records but have shared with them on more than one occasion the amount of cash we have on hand to work with."

What value have you given them? An out-of-state investor who says they have lots of money who wants them to do all the legwork on a commercial property. Why would you even be asking what they should be doing if you haven't even shown them your financing or proof of funds?

Most of the time when buyers or new investors ask what an agent should be doing for them, they are usually missing the part where the trust has to come from both sides. What have shown them to confirm that you are real buyers looking to invest in the area? And often on commercial deals in rural area, there are LONG delays in communication between the listing agent and seller.

Ashraf Ayyash · Answer

@Tyler Hofer very simple, If a realtor don’t bring you great deals ( hot deals, under market value, off market etc) and follow up with the entire purchase process ( price negotiation and set up the right terms that favour you) then they are not needed at all. Many Relators ( from my own personal experience) wanted YOU to find a deal and have them deal with the purchase process. The purchase process is worth 1% commission in my opinion. A lawyer would be a better choice to handle purchase process if that all the realtor do. If you find a good realtor ( very very rare) keep him/her for as long as you can.

Joe Splitrock · Answer

@Tyler Hofer instead of asking random people on the internet, call your agent and make your expectations clear. If you are in active negotiations to buy a property, you should be touching base daily.

Steve Morris · Answer

What do you expect the broker to do for you? I think with buyers (especially first-timers), they're not clear on what they know and don't know about valuing a property and the sales process. As a buyer, I don't think I'd trust a broker 100% since his goals are a comm check at close and for you, the fun begins at closing.

If you want to a broker to be a "turnkey" (ie do everything from finding and telling you what a good property is to running the deal) then explain that and ask for proof/resume.

How Hard Should a Realtor Work For You?

How Hard Should a Realtor Work For You?

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