Let's face it. You, the public, think all real estate agents are the same. And that is simply not true. Of course, real estate agents help you with that stereotype every chance they get. After all, when is the last time you talked to an agent that wasn't the #1 expert in Kansas City...or anywhere else, for that matter.
You, the public, need to realize that not all real estate agents are created equally. Some have more experience. Some more eager to get their hands dirty. Some are better suited for expensive properties. Others more the entry level home category. And a few, very few, are real estate agents that specialize in working with the real estate investor.
But even within the field of real estate investing you have agent specialization. For instance, I'm not big on working with investors looking to "flip" homes here in the Kansas City area. No, my specialty is more geared towards helping investors secure income property priced between $100,000 and $1,000,000 that they can hold for 5-7 years and then sell either through a 1031 tax deferred exchange or otherwise depending on their individual situation.
How To Interview Your Prospective Real Estate Agent
If you are a real estate investor here are some questions you can ask your prospective real estate agent whether you are looking to buy or sell your next rental property:
- Do you own, or have you owned, real estate investment property?
- How many real estate investors have you worked with in the last 24 months?
- Tell me what you know about IRC Section 1031 Tax Deferred Exchanges.
- How do you help me measure returns on income property?
- Where are the best neighborhoods for cash flow?
- Where are the best neighborhoods for appreciation?
- How do you calculate expenses?
- Do you have an attorney, or estate planner, or accountant that you can refer me to?
As you can see these questions vary greatly from Joe & Mary Homebuyer's questions about where to raise their children. To work with the professional real estate investor takes study, commitment and a whole different skill set than it takes to work with the primary home-buyer side of real estate.
Be wary of the real estate agent that says they do both.
My advice; When looking for a personal home find the best real estate agent for that neighborhood or part of town. When looking to buy or sell a real estate investment property you may want to find an agent that knows his or her stuff. Wherever you live.
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