I periodically peruse industry blogs to catch up on what is going on in the real estate and nonperforming loan fields. Most of the posts I see are uninteresting or they are just downright stupid. Sometimes, I see a post that is not only stupid, but it makes me think. One in particular that stuck out was a question that I see pop up from time to time, “Is it me or (do) most of these realtors (stink) at their job?” Two things come to mind when I read the question. Many, if not most realtors do not really bring value, but more importantly, are you the right customer for a good realtor?
It has been my experience that every field has their good and bad practitioners. When I was a banker, I met great lawyers and bad ones. I met great doctors and bad ones. Every day I chat with great realtors and bad ones and, yes, great real estate investors and ones that have no idea what they are doing. Which one of those are you? In the beginning, we really struggled to find real estate agents, and other vendors for that matter, that were competent and responsive. It even got to the point where we formed our own real estate team to work on our own deals in the Tampa Bay area. To this day, the team is going strong and it even works with other investors. Usually, however, we discover that the vast majority of real estate investors are not good partners to work with. Most aren’t worth our time. Here are just a few reasons why.
- LOYALTY: The number one reason that we will fire a real estate investor client is a lack of loyalty. Just this week I another agent that I have done several deals with texted me to tell me that a client reached out directly to them to see if they could save my 2.5% on the deal. Unfortunately, this story repeats itself over and over. We bring a great deal of value to our clients. We actually talk our investor clients out of more deals than we recommend that they buy. We work with them on the rehab plan, help pick out the right materials and finishes, hook them up with contractors, get them discounts from vendors, help them with staging, work with them on city codes and permitting…basically, we go way beyond what most agents do for investors. We have clients that are incredibly loyal and we’ve built great friendships with. That being said, we get a lot of investors, particularly newer investors, that act as if we are disposable doormats. We’ll build incredible relationships with investors, but that loyalty has to be a two way street to make it make sense for us.
- VALUE: Just as you seek a real estate agent partner to provide you value, are you providing value for their practice? They, too, have mouths to feed and bills to pay. Does it make sense for them to work with you? Some newer investors ask us to spend countless ours scouring for property only to never buy anything. I’ve had many clients that demand white glove service including chauffeuring them all over the planet for weeks on end, but never pull the trigger. There has to be a balance. A great agent certainly should bring you value, but in return, they should also receive value.
- RESPECT: When my daughter was being born, I was in the delivery room with my wife. If you’ve never had a child, it’s not like it is on TV. There is a lot of waiting between contractions where you are simply sitting around while every now and then a medical professional pops their head in to say “are you good?” It’s not until the end until everything gets busy. That being said, I had a client leave me a voicemail message that they needed to speak with me. I texted them back telling them I was in the delivery room with my wife. I still remember their response…”but it will only take a minute!” My wife is a great agent that brings incredible value to her clients. With a degree in interior design from a top design school and experience doing hundreds of flips herself, her phone goes off 7 days a week well into the night. It is not uncommon for her phone to go off at six in the morning or ten at night. Respect is a two-way street. Make sure that you are respecting the pros that you work with…including real estate agents.
I completely agree that it is hard to find a great agent. That is the whole reason we started our practice. Originally, we only intended to handle our own real estate transactions. As word of our work grew, however, so did our client base. Before you seek “the right agent”, be sure that you know what you want them to do for you. Great agents that bring tons of value are out there. You simply have to find the right match for you.