Revealing the role of real estate agent
Real estate agents are a valuable resource to any real estate investor wishing to build a team of professionals. Just like a property manager provides you with sound understanding of the rental market, a real estate agent provides info on the local sales market from both the seller and buyer’s perspective. They tell you which properties have the best resell value, what market trends are like, and which areas are hot for buying and selling.
While they provide you with plethora information, keep this in mind: a real estate agent is not a real estate investor. They won’t coach you on investing strategies, because that isn’t their job. They will help you buy and sell properties–that is their job. Now, one of the ways a realtor does this is by using the Multiple Listing System, or MLS. This electronic database shows properties for sale in a specified area, how long they’ve been for sale, property details, and any recent price reductions.
Length of time on the market and price reductions are both valuable indicators to the savvy investor; they can help you determine the motivation level of the seller. For example, if the property has been on the market for 12 months and had a few price reductions, then the seller might be getting anxious/motivated. Real estate investors should look for such sellers, since they are more likely to negotiate.
Of course, to get the most for your investment, you need to be working with a real estate agent who is a skilled negotiator. Not all agents or comfortable in bidding volleys. Some realtors are timid or hesitant to make low offers; instead, they urge buyers to offer unnecessary full-price bids. But a real estate agent with a good attitude towards negotiating jumps on the opportunity to get their investor the lowest possible price.
Well, if you can combine all the good qualities I’ve mentioned in this little blog and find them in one realtor, hold onto that agent with both hands. They will be one of your most valuable team members and worth their weight in equity.