Real Estate Agent Expectations

[Manoj Sadasivan]

I am fairly new to REI with one rental property under my belt am working through an agent to find buy and hold properties in Metro Atlanta area, however here is the problem. Even after communicating my expectations very clearly. the agent I am working with is showing very low level of engagement other than sending automatic system generated emails with the new listings for that day. I am an out of state investor and I was expecting the agent to help me short list areas, bring up deals before it goes into MLS or atleast give inputs about the ones that are listed in MLS. Am I expecting too much here, or is it possible that investors are viewed as a hassle here?.I am at the point where I am strongly considering to find someone else. Thoughts please

[Jeff Dulla]

Manoj - it is not easy to find the right person. I work with a lot of agents in the Chicago land area and what you will find is a gap between the experienced agents who have the knowledge you seek and the newer agents who are hungrier, will work harder for you and go the extra mile. 

Doing those things that you are asking for takes a lot of time. A really solid agent might do $15MM or more in volume and may just not have time to do those things. Again, a new agent isn't going to be as knowledgeable. You need to find someone in between - maybe a few years into the business, really knowledgeable, maybe with some personal experience in rehabbing. 

I would try to compile a list of agents referred from trusted people and places (like BP). Once you do that, I would interview them and gauge where they are at in terms of personality, knowledge and volume. 

[Michael B.]

@Manoj Sadasivan Exactly my issue. I sometimes want to ask these agents to just set me up on the MLS so that I can do my own research and comparisons. I feel like I am the pro and they are the client.

[Brandon Battle]

Call the agent and set them straight as to your exact needs and expectations.Fire them if they get defensive or start blaming you for not being "cooperative" with their mediocre efforts.I would travel to Atlanta and interview a dozen agents over a weekend and see if one of them can better serve your needs.

[Sarah Ziehr]

What price point are you in and what level of engagement are YOU showing that agent? 

I agree that some agents are just lazy but I've been on the other end of it, working my butt off for someone who never buys a single thing. Finally after months or years (yes, years!!) I put them on the back burner. Likewise if you are in the under $100k price point you may be expecting too much. Traditional agents get paid only after they close a deal.  

For those investors that fancy themselves the expert, consider getting your own real estate license and MLS membership if you think you real estate agents are obsolete.

[Aaron Lovett]

HI @Manoj Sadasivan, 

It may be that even though you've been clear, he still doesn't understand, agree, have the time or connections, or the market isn't providing the properties to fulfill your expectations.  

Short listing MLS deals according to your specs and giving input on the potentials sounds reasonable to me, but another agent might disagree. Some agents might not think it's worth the time, especially if they aren't able to do that part of the job efficiently.

Bringing you pocket listings is great too, if they are there and the agent knows about them.  

Also, if your specs are out of line for the market, maybe there just isn't anything out there that your agent thinks would work for you.

In short, those expectations (as I understand you) aren't unreasonable for me, but every agent is different.  It sounds like a conversation is in order.  

[Ellie Hanson]

My agent does these things for me but I buy 12+ properties a year. It took some time for folks to take me seriously and know that I'm not wasting their time. Maybe with just 1 property they don't think you'll really pull the trigger. Also, in this as in everything in life, you've got to ask for exactly what you need to have any hope of getting it.

[Manoj Sadasivan]

@Jeff DullaGreat suggestion. Thank you. 

[Manoj Sadasivan]

@Michael B.Glad I am not the only one feeling the same.

[Christian Wathne]

Like everyone else; I feel your pain!

I'm looking for flips, so in need of holes with big margins and in need of rehab; my agent had been bringing me to homes which were in nad but still move in condition. I had a meeting with my agent and walked him through my flip calculator ( calculates buy/sell/financing costs + rehab) and said I'm looking for deals that are minimum $30k profit. He now does the work of finding the arv based on comps etc; then we tour those which meet the basic criteria and I fill in rehab budget and verify the arv's

My agent was very cooperative about doing the extra work, and we signed a deal a couple weeks ago on a sfh

[Jake Thomas]

From the Realtor side I work with several out-of-state investors and until they pull the trigger on something it is hard for me to justify spending hours and hours helping you analyze each property so you can take months and month before your first purchase. Now if a buyer that has proven their ability to close with me wants some extra help I will go that extra mile as I know they are not wasting my time. Any good agent should be busy and they are worth having on your side but our job isn't to analyze every property either as every investor I know calculates cap rate, coc, and ROI's completely differently. I can't keep track of each ones formula to do that for them.

[Brie Schmidt]

I am an agent and I set client's up on MLS alerts, but I get them at the same time and I look at every property that comes up. I do the analysis and send out a seperate list comparing the available properties. It is winter where I am, and historically our inventory is slow. I have not seen a property I thought was good in months... and that is normal for us. So I may not be communicating with clients regularly right now because there is nothing to show them.

[Deborah Pyburn]

@Manoj Sadasivan I specifically work with investors in the Atlanta market. I've gone through a coaching program that specifically shows agents how to change their business model to work with investors. I'm not saying your agent is on the right track because he/she may be giving you the brush off but it's also possible they are expecting you to run the numbers on the deals to make sure they work for YOU. Investors have their own criteria, 2% rule, 1% rule, 10% CAP rate, wanting X% cash on cash return, etc. While as their representative, it is my job to understand what they want, help them find properties that fit and negotiate on their behalf, running the analysis for them isn't a thing. I understand some clients who are out of state may need me to show them a property via FaceTime or go and take neighborhood photos. If your agent isn't doing that and it's something you need have a conversation about it.

[Crystal Smith]

Originally posted by @Manoj Sadasivan:

 Am I expecting too much here, or is it possible that investors are viewed as a hassle here?.I am at the point where I am strongly considering to find someone else. Thoughts please 

 Put yourself in the agent's shoes- The agent makes no $ until you close a deal.  Every minute spent w/ you is an expense.  You have to give the agent an incentive to spend some time w/ you.  (Example- Have you provided an agent w/ a Proof of Funds and/or a Pre-approval letter from a lender.  These show you have the ability to close)  The agent has to eat.  How are you going to feed the agent? 

[William Hochstedler]

A bunch of people are suggesting that what motivates an agent is the $$ which doesn't happen until a deal closes.  While this is partly true, for me it's the level of engagement of the client.  I get several inquiries a week (even from some very well qualified investors) that almost expect me to buy the property for them while they don't even open my emails.

My suggestion, instead of being confrontational, is to choose a couple of properties that are sent to you from the MLS and pick up the phone and discuss them with the agent. Ask about the neighborhood and get a feel for the market. How does the agent feel about them as deals? This lets the agent know that you are actually paying attention and serious.

I can (and have) put the best deals in the area in front of people who can't bother to pick up the phone and ask about it, let alone make an offer.  How hard do you think I'm going to work for them?  When I know something will go under contract within the next few hours, I'm not thinking about calling that person who hasn't been communicating with me or shown serious interest.  If I'm picking up the phone, it will be to the clients who I know will buy based on my relationship and knowledge of their criteria.  You need to make sure the agent knows what a "yes" is for you.  If you don't know what that is yet, it is the agent's job to help you get there.  And the only way they can help is if you are giving feedback and asking questions on the stuff that is coming to market.

So this agent may absolutely be a deadbeat.  There are a lot of them.  But at the same time communication is key.  You need to do a bit of marketing yourself so that agent is thinking about you when they see your perfect property.

Good luck!