How many realtors to reach out to

Question

Ko Kashiwagi · Answer

Hi Nicholas,

I would talk to around 3 and take it from there. If you find a realtor that fits you I would focus on building a relationship with them before moving on because good realtors won't waste their time on someone that doesn't see there value.

Estela Legaspy · Answer

@Jeff Roth why do you think there is such a small number of realtors who are investors? I'm reading this and other threads as I'm looking to start analyzing out of state investing.

River Sava · Answer

What market are you looking into?

Cara Lonsdale · Answer

This is absolutely correct.  As of August 17th, 2024, gone are the days that any Realtor can meet you at a property and show you one-offs.  Now they are required to obtain a commission agreement before setting foot in a property to show it to you.  The only exception to this is an Open House.  Agents can host an Open House and allow potential Buyers to walk through without having agreements in place.  Any agent who violates this is communicating to you that they are unethical.

Best practices proves that interviewing agents BEFORE you go looking, to find the most competent one for your specific needs is the right way to do it.  With mutual trust, your agent will be able to put more time and care into your searches, evaluating properties for you, and not having to worry if their time will all be for not.

Chris Ayars · Answer

@Nicholas A. The world of real estate has changed.

The result of the lawsuits is that a REALTOR® is now required to have an exclusive buyer's agreement before stepping into/onto any property on a potential buyer's behalf. You CAN limit that agreement to a specific property; but, as others have stated, agents are looking for a certain amount of loyalty from their clients.

If an agent gets vibes from a prospective client that indicates that they want to cheapskate and not pay a professional for their service, they are not likely to waste their time with them. A buyer agreement is the legal document that provides the agent with the assurance that he/she will get paid if they work with you to complete a real estate transaction.

Drew Sygit · Answer

@Nicholas A. your shotgun approach has a high probability of getting the exact quality you put into it.

95%+ of real estate agent, many of them posting they are "investor-friendly", only know how to deal with owner-occupied transactions.

You can test this, by asking some to SHOW you how they calculate ROI, Cap Rates, Cash-on-Cash, etc., for their clients.

Many will say, "that's the investor's problem".They are correct because an investor should NOT rely anyone else to run their numbers.

So, then what exactly makes them investor-friendly?
- Will they preview properties for you, taking narrated videos they send to you?
- How many below-asking price offers will they write for you before ignoring you?
- Will they search for off-market properties for you?

What you'll find is that the highest volume agents in any market avoid investors. They either list owner-occuiped houses for sale or know they can show a normal buyer 5-10 houses for a sale.
- It's not profitable for them to search for under-market priced houses, figure out repairs needed or what other problem is pushing the price down and do even more for a newbie investor that has analysis-paralysis and may never buy anything.

Some questions you'll want to share the answers to with any agent you choose:

1) Are you paying cash or getting a mortgage?

2) Are you pre-approved and have the down payment in your bank account?

3) What ROI are you looking for?

4) How fast can you move if the agent brings you exactly what you are looking for?

Good luck!

Basit Siddiqi · Answer

Determine what type of property you want to buy - What Zip code, what condition homes, price range, etc.Contact 3-4 realtors that helped buyer agent buy the type of homes you are looking to buy.Then go with the 1 realtor that you connected with the most.

Havital Miltz · Answer

After trying to work with various realtors over the years, I am normally unwilling to commit to one or the other, I will sign representation for each property they show me.

Unfortunately I have had, over the years, too many realtors that don't know as much as I would like for an investment in the 6 figures.

Recently I asked on a FB group I am part of about a commercial realtor in this area,

I interviewed the one that came highly recommend. She actually was a junior attorney in the closing of my house and decided to no longer practice law and become a realtor instead,  her legal knowledge is extremely helpful.

When you are buying you can use my strategy.

When you sell, interview as many as you need until you feel very comfortable with the one you decide to work with.

real estate is a big investment, and for me it's long term, I don't want to have buyer remorse because someone isn't as knowledge as I like.

when I was younger,  I was more willing or less experienced,  today I want the same level of knowledge as I offer when I help someone with their tax planning or when I prepar their taxes.....

Show me your high level of knowledge,  you are hired.

Jeff Roth · Answer

Hi Nicholas from Buffalo Grove, IL!

You are interested in a certain market to use the BRRRR (Buy, Rehab, Rent, Refinance, and Repeat) method to purchase property.

To find these properties, you asked how many Realtors you would contact in that area.

Honestly, most Realtors do not speak investor language and are not investors themselves. What you want is an investor friendly Realtor who is, ideally, an investor themselves which is a very, very small percentage of Realtors.

Yes, you should find an investor friendly Realtor to have on your team. Some ways to find that person is local Real Estate Investor Facebook groups, local Real Estate Investor Associations, Realtors who list multiple properties for other investors, Bigger Pockets website's forum, and local property managers.

You will also want to try to get on the buyer's list for local real estate wholesalers.

To Your Success!

Jonathan Small · Answer

@Nicholas A. I personally don't like exclusive by agreements. Realtors would never exclusively do the same for me.

I am very clear about what I want to buy. If an agent brings it to me then they should get the commission.

When starting out, I’d say reach out to 3–5 realtors in your target market. It’s all about finding someone who understands your goals (buy-and-hold, flips, etc.) and knows the market inside out. Have some initial conversations to see who’s responsive, knowledgeable, and investor-friendly.

Once you find a good fit, you can focus on building a strong relationship with that one realtor. But having a backup or two isn’t a bad idea, especially if deals start flowing faster than one person can handle.

Good luck finding the right team! Let us know how it goes.

How many realtors to reach out to

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