OK to use novice real estate agent?

Question

I'm really thinking about using my manager as my real estate agent. He has a lot of experience (5+) year managing. Plus he's by far the best manager I've had, I want to reward him with a nice commission.

However...

He told me he's only buy/sold 5-6 transactions. He said he could get more help under his broker.

Do you think it would be foolish for me to use him? Once again, he has a lot of experience managing in the area so I'd expect he'd know what to look for. But maybe with things like negotiation he'd need some insight, which his broker can provide

Your thoughts are appreciated.

Michael Noto · Answer

@Alex Silang How interested do you think your PM is going to be to manage this place while it is listed if he's been passed up for the listing opportunity? Just a real life aspect of this to think of.

Also, does the property have tenants? If so, you will need cooperation from them to have showings. In that case he will probably have a better repour with the tenants than a different agent.

Eudith Vacio · Answer

@Alex Silang - I think there are a few questions that need to be answered because it's too little information to truly know if he is a good fit. I get the hunch that you want to help him and he wants to help you BUT if you are looking to purchase your 1st property, you also need someone that is knowledgeable not  just in the area but also in how to operate real estate transactions. If he is getting his broker to help then great but understand that things may not go as smooth or as fast.

Casey Powers · Answer

@Alex Silang

If he is a great PM then he is probably very diligent - good quality for handling a sales transaction. If he will get help from his broker, that is good. PM is often much more tedious than a real estate transaction, so a sales transaction can seem much easier.

My concern might be in that he may not know much about how to write strong offers in a super competitive market. It’s often about more than just the price. There is also the fact that people don’t know, what they don’t know. If he does so few sales, he may not know when he needs to ask for help from the broker.

Also, will this person be expected to help you shop and analyze deals, or just handle the transactions? Does he know how to analyze potential deals? Does he have time for that, in addition to his other duties?

Alex Silang · Answer

I'm purchasing an additional property, not selling.

Jon Kelly · Answer

@Alex Silang Why not just pay your property manager a bonus for the work they've done, and find referrals for a quality investor friendly agent?

Networking and "your team" is key in real estate. The more quality relationships you can build the better you will be.

Andrew Freed · Answer

@Alex Silang Your most important partner is your deal finder or "agent". I'm not saying he won't do a good job, but you would definitely increase your odds by choosing an investor friendly real estate agent with a track record of success. I'm sure there is a ton in the Nevada area. At the end of the day, investing is just risk management so increase your odds any chance you get.

OK to use novice real estate agent?

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