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Why Are Agents Viewed With Disdain by Real Estate Investors?

By
Services for Real Estate Pros

I have sold a lot of properties... and those real estate investors who I coach have collectively sold even more.  Lots of deals and lots of profits.

Yet, if I were to identify the biggest complaint expressed by real estate investors in selling a property it wouldn't be the inspections, or the apprasials, it would be dealing with the buyers agent. 

Let me share a story of one of my coaching members and the challenges of selling his deal.

Pablo is one of those real estate investors who knows that his profit depends on both his actions and his willingness to be both patient and persistent. 

Over the past four months Pablo had renovated the house, put it on the market and sold it... and of course he made a profit. 

After some negotiating Pablo gets a contract on his deal... and hits the dreadful Trifecta in real estate.  1. A contract price double his purchase price, 2. He owned the property for just over 90 days with the buyers of course using a FHA lending program, and 3. The sellers agent displayed all the signs of being incompentent.

The deal got done, but... and this is a big BUT... it wasn't without some challenges.  Challenges like multiple apprasials, nit-picky and multiple inspections, and of course buyers who want the world and their agent who seemed to want to kill the deal rather then get it done.  In this particular case the buyers agent had a nasty but all to common habit of vanishing for long periods of time.

In Pablo's case he, with his agents assistance, doggedly followed-up with every detail, went around, through and over the sellers agent and got the deal to closing.  

Had it not been for Pablo's agent doggedly following up and never letting the sellers agent contol the deal, this deal would have died.

As an investor... what would you do in this situation?  As an agent... what would you recommend to your client?

I welcome your feedback.

 

Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

Greed is a difficult thing for some people.  I have worked with investors who understand the working of the market and the Realtor and appreciate our work.

Sep 06, 2009 05:32 PM
Jim Hale
ACTIONAGENTS.NET - Eugene, OR
Eugene Oregon's Best Home Search Website

Investors are usually -- understandably -- less patient with agents because they often simply know more about real estate than the average agent -- who is only used to dealing with some-time buyers and sellers.

Sep 06, 2009 05:33 PM
Peter Giardini
Baltimore, MD

Thanx for the comments...

Jim... good point.  I know that it took me a while to find an agent who cared to know enough about my business to be able to support my efforts.  Having that agent on my team has made all the difference.

Regarding the comment about "greed" very interesting thought.  While this was not the case in the story I told, I have seen investors who would sell their grandmothers house for a profit.  Thank goodness most of them got killed in the down turn.

Sep 06, 2009 05:55 PM
John Rakoci
Eagle Realty - North Myrtle Beach, SC
North Myrtle Beach Coastal Carolinas

Developing trust and a relationship with serious RE investors is not easy. However, they are great to work with once a relationship is made. Treat them as a professional and they are loyal which means a steady income stream. The agent must be able to more than find a good buy. Often they have the contacts that provide them with leads long before they are on the MLS. Then they turn it over to the agent to determine fair pricing, gross annual rental income, gross expenses, ROI, demographics, neighborhood info, and more. The investor studies all info provided and may talk to his account, tax advisor, and etc. If anyone involved delays they will not be in the loop in the future. Closing often is fast as many transactions are cash; lawyers, appraisers, inspectors, and etc have been used in the past and know their job.

My most recent sale closed in 12 days after finding the property and emailing the investor with 'looks good' at the end of the email. The reply was 2 words "agreed - proceed". The offer forms emailed after a call with 2 questions. "Price?" - whatever you think. "Financing?" Like the rest (cash). Offer presented and when called with the counter - buy it like for yourself. Within 2 days all negotiations complete, inspections & etc scheduled. Day 9 informed buyer of HUD 1 results and bottom dollar amount to be transferred. Day 12, closed by mail- all over.

Sep 06, 2009 06:05 PM
Peter Giardini
Baltimore, MD

John,

You absolutely nailed this entire discussion.

As you have found... once you find those investors who know what they are doing, and can develop a trusting relationship... things get pretty easy from there.

Thank you for taking the time to post.

Pete

Sep 06, 2009 06:21 PM