Now that you have made up your mind to invest in property, you don’t want to make any mistakes that will slow down the process or potentially harm your profit.
Property investors must make the right decisions, and this is where a buyer’s agent can make a significant impact.
Potential investors can use the expertise of buyer’s agents to vet the listings and also negotiate with sellers to set a fair deal. Finding the right buyer’s agent is another story altogether.
Given the important role that the buyer’s agent has in your profit-making, we have put together a few tips that will help you pick the right buyer’s agent for your property investing needs. Let’s first find out who they are and what they do.
Who is a buyer’s agent?
A buyer’s agent will help potential property investors to find the right property and negotiate a price that will be to everyone’s liking. There are different types of buyer’s agents, and you can differentiate them by the licenses they hold.
Exclusive buyer’s agents have an ethical or legal relationship with their clients and can only represent buyers. Since it might create a conflict of interest while negotiating, buyer’s agents don’t represent sellers.
You need to connect with a buyer’s agent early on in the investment process so they can have a good understanding of your needs. These agents can vet the best listings for you and also accompany you to open houses.
Once you have chosen a property, the agent can negotiate a final price for you. A buyer’s agent gets paid only after the deal closes, so they will assist you to close the process quickly by helping you to go through the entire purchase process smoothly and effectively.
Here are a few tips to help you identify the right buyer’s agent.
Interview a few agents
You may like the first agent you interview a lot, but don’t go with him just yet; meet with a few more agents and compare before choosing.
While conversing with them, ask about any referrals they might have and their recent sales. You can also ask them to share what their experience was handling different situations and how they carried on working relationships with past clients.
How connected are they?
A buyer’s agent needs to have good connections with other agents as this can help to get access to properties early on. To close a deal on a property, you need to have a team in place who are all responsible for different actions in the process.
It’s important to gather the right team as the speed at which your deal closes will depend on these people doing their part of the work properly.
See if the buyer’s agent has connections with these people, the home inspectors, appraisers, real estate lawyers, and so on. The quicker the team gets assembled, the faster you can close a deal.
Go with someone you like
You need to pick an agent you can communicate freely with and someone you like. Since you will be spending a lot of time with this person, pick someone with whom you’ll feel comfortable.
Don’t go with someone just because they are a part of a big successful firm. Being able to have a personal connection matters more, especially if it’s your first time investing in property.
Discuss possible strategies
When you hire a buyer’s agent, both of you work as part of a team to achieve the common goal of property investment. This is why you need to be aware of the strategies and the approach you are going to take.
Discuss possible strategies and approaches with the agent to see if both of you share the same ideas and can agree on a winning strategy. Find out how capable they are of handling tough negotiations by talking about their previous experiences of negotiating and closing deals.
Discuss different scenarios
If this is your first time investing in property, you need to feel confident that you are not taking a risk, rather making a smart transaction in real estate. But you still need to be prepared for adverse situations, which is why you need to discuss all scenarios where there might be unanticipated problems.
You need to see how the agent handles adverse scenarios and what strategies he might have to overcome them and move toward a profitable deal.
Consult your friends and family
A good way to pick a reliable agent is going through your social circle and asking them for referrals. Family members, friends, or colleagues can recommend a good agent if they have recently used the services of an agent to invest in property.
Once they recommend particular agents, you can cross-check them from online reviews of these agents. This way you can get a more comprehensive idea of how experienced that agent is and how reliable they will turn out to be with your investment.
Check their license
It is also very important to check the licensing of the potential agent and see what certifications they have under their belt. The agent you choose must have a valid license to represent you in your state.
Check out what certifications they have, since these give them more authority and make them more reliable as agents to best represent your interests.
How much local knowledge do they have?
The buyer’s agent must have sufficient knowledge of the local market. Being familiar with the local market gives them the speed and agility required to make a winning deal. Is your market a buyers market or a seller’s market?
This will determine the strategy, and if your agent is familiar with the local market, he will be able to quickly devise an investment strategy so that your finances are safe.
Picking the right buyer’s agent might seem like an overwhelming task, but just a little legwork on your side can help you to achieve the right results in a few simple steps.
Following the tips mentioned above will help you to pick a reliable agent, one who will look out for your interests and keep your investment protected. Best of luck with investing in your new house.