To Use a Realtor or Not to Use a Relator. That is the Question.

[Harold Felder]

Hello BP Community,

Background:

I currently have a real estate agent who has brokered all of my investment as well as personal real estate purchases. This includes the 3 SFH and a fourplex that I just completed rehabbing. She is also the property manager for all of my properties and has done a good job of filling vacancies and maintaining my properties. I trust her. Moreover, her family and my family have become close over the years.

Dilema:

I am looking to move up in the multifamily space. When I read articles here on BP as well as books and even listen to the gurus, they either imply or outright say that I don't need an agent to make first contact or even negotiate apartment deals. They say that I should handle that myself. I've also heard that using a realtor, particularly on larger deals, would only slow down the negotiating process and introduce another layer of communication that could cause misunderstandings and confusion.

I am a newbie and wanted to get feedback from the BP community on whether I should continue to use her or start negotiating deals myself?

[Peter MacKercher]

So, disclosure: I'm a Realtor myself. Even if I wasn't I'd still argue the case for using an agent. The simple fact is that they have written far more contracts than you have, so the negotiation process is something they've refined their approach to with much practice. Leaving your agent would put you back at the start on that count. If you're solo trying to negotiate with a seller using an agent you're at a disadvantage. If you're negotiating with a seller then it's in their interest to not negotiate with you, or at least be more difficult to agree to terms. Agents on both sides want to close, so they're trying to get terms that work for both parties, rather than both parties trying to get the biggest piece of the pie.

Besides all that, if things are working for you with your current agent, then why rock the boat? I'd suggest following along with your plan and if things start getting rocky reconsider then, not before.