Calling listing agents?

Question

I'm thinking on moving on from my current realtor and just calling the listing agents. For those that do this any recommendations or methods you follow when doing so? Or lessons you've learned?

I'm sure I'll be asked why, it's something I'm contemplating because I'm losing faith in my realtor. 2 of the past deals I've inquired on I feel I've been blown off. One was a duplex and I wanted to see if he could find out lease information, didn't hear back and the deal went pending, when I checked back in with him that's all I got was, "It's pending."

The second one, I had put an offer in on a property and the last he and I talked they were going to counter and we were waiting to hear back from the city as the property was rundown and they were wanting either the foundation fixed or to possibly tear it down. Hadn't heard back, hadn't heard back, and that one went pending and sold. So I asked what happened and this was literally the response I received, "Not sure. I'm guessing they had a higher cash offer and took it."

So I guess my question could be two fold, what else should I/could I have done there? I'm just getting the feeling that he doesn't have much interest in chasing the properties down that I'm looking at, which are BRRRR properties and not on the high end for purchase price. And I'm beginning to feel I'd have better luck on quickly looking at the properties by calling the listing agent. I'd much prefer to have someone in my corner, but I've missed out on some properties trying to work with a single realtor at this point

Thanks in advance for the time and feedback

Marcus Auerbach · Answer

Find a new agent. As an investor I had a hard time finding a good agent; I did not know that I had to put effort into finding one. But it matters and it makes a huge difference. Now as an agent I work with close to 100 agents every year here in Milwaukee and frankly there are not many I would recommend to a friend. The industry has a turn over, close to 90% give up after year one. Year two is not much better.

The fact that you are looking for lower priced properties rules out all the top producers, because they are chasing deals that pay five times more for the same work. But BP is for sure the best place to find a good match - you want someone who has a background as an investor and is motivated to work with you.

Working with a listing agent is a possibility and it can be succesful. But it comes with drawbacks. Not so much for the initial offer, this is what everyone thinks about, it's more for helping you with market intel, strategy, understanding the condition of the property (did I mention to find an agent who has done rehabs?) and also negotiate insoection results.

Buyers often call me on properties where I am the listing agent and I will not work with them. First I have an ethical issue - I can't represent the best interest of both parties. Second I don't have rapport with the buyer and it would be purely transactional.

So bottom line, make it a project to find a great agent to represent you. Someone who has walked the path you want to go (REI). BP is the perfect place, look in the top menu.

Jeffrey Donis · Answer

I'd start with going to networking events in your areas, or reaching out to your personal network to see who might be looking for an investor to work with. Social media is also a great way to find realtors! Consider messaging any realtors directly, or cold calling realtors who say they work with investors. Directly reaching out and building relationships would help you find the right match more than other strategies. Networking and word of mouth referrals is the way to go.

Rick Albert · Answer

@Cory Lucas

The Realtor will handle the compliance stuff.  Really it is the due diligence and strategy in negotiations where you need the guidance if you don’t have the experience.

Caleb Brown · Answer

If you can find a new buyers agent do it. Most agents are clueless with investors and don't work with them. Go on FB groups, here on BP, recommendations from local investors or lenders, etc. Listing agents don't have your back. You can use them till you find one but the right buyers agent will always help you out

Sam Iam · Answer

@Cory Lucas most realtors don't like to deal with investors because they buy below fair market value. That cuts into their commission.  I'm an acquisitions specialist. Investors hire me to find their investment properties for them. You may want to go that way. Our fees tend to be a lot lower than the broker commissions.

Jacqueline Coombs · Answer

@Cory Lucas I am in the same boat here. ‘Good information on this thread!

Michael Doherty · Answer

@Cory Lucas unfortunately it sounds like he does not have an interest in helping you search for for BRRRR property.

As both an investor friendly agent and investor I can see both sides. From the investor standpoint: before I was licensed I was sure to hire an investor friendly realtor who owned investment property. One... he could provide his insights and leverage his experience and two, he knew how to navigate the market. I would recommend you look for the same. Someone who owns investment property can speak the language and close a deal out for you.

As an agent now...I will provide an agents standpoint and please do not take this the wrong way... just devil advocate.

I do not know your market but if it's anything like the East Coast finding possible flips/BRRR's on market right now is nearly impossible... numbers just don't work. Working with first time flippers can be challenging because of the lack of experience and you end up showing 10-15 houses before you can get one under contract. Then you have to go back 2-3 times to that same house because they have to get quotes from their contractors ect. All the houses you are showing are relatively inexpensive because they are 'flip' properties and need a good amount of work. If they are a decent agent they are most likely working with 7-10 clients at one time and their time is limited. Just from a time/money standpoint, it doesn't make sense to devote all your time and energy to a small commission check. And if you are doing a BRRRR and not flipping it... they know they will also not get the sale on the back end.

Now that doesn't excuse someone to act the way this realtor has but it could be what's going through his head. I would have an open conversation with the realtor and be honest. It could just be as simple as it's just not working out and you move on. If that's the case, when you start looking again make sure to ask a lot of questions to your new realtor. Do you work with investors... do you own property have you worked with flippers before ect ect. When you find someone make sure not to waste their time. Run your numbers to the best of your ability before seeing the house. Schedule your contractor to join you the same day as showing. When your running your numbers be realistic. If you keep sending low ball offers it will become frustrating for the realtor. Explain that you are in this for the long-term (if you are) and you want to keep using the same realtor and build relationships ect. Hope this helps provide context from both sides.

Cory Lucas · Answer

@Dustin Allen thanks for the feedback, good insight

Cory Lucas · Answer

@Rick Albert this is my concern, but I know there are tactics in going about this to protect yourself, which is what I’m hoping to learn

Rick Albert · Answer

@Cory Lucas

Keep in mind when you’re working with the listing agent that person now becomes a door agent is required to be neutral. Therefore, you really do have to look out for your own best interest. Plus, as we have learned, not all agents are created equal. You could be going with the listing agent but they may do just as bad of a job or worse than someone else.

I do agree though, you should dump your agent.

Calling listing agents?

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