Real Estate Deals
They say that time changes things but you actually have to change things yourself. If you are into real estate investing, you obviously need to have a great relationship with your real estate agent. Of course this concept is very easy to get. Just as its important for an agent to be in the good books of a buyer or an investor, it is equally important for the buyer to be in the good books of the investor because the real estate agent who is the eyes and the ears of the investor and he is the one who brings him the best deals.
But as an investor or buyer who is in the market to hunt for a good deal or property, when can you say, “Thanks but no thanks.” Well there is no formula for how to get in or get out of a deal with your broker. But let us give you some pointers so that no there are hard feelings later on.
Make an Agreement
This is similar to how smart investors buy real estate. When you decide to invest in property and enlist the help of a real estate agent, have a plan to walk out of the deal. If you are smart investor, you know that you will have to find an agent who will remain your agent for life. In all probability, you will have to work with a lot of agents before you find the agent who is the right fit for you and your needs. This is why you need to be prepared with an exit plan in case things don’t work out.
You can make things professional with the help of a form called the buyers-brokers agreement. Honestly speaking, these kind of forms are rarely if ever used by brokers because in today’s competitive times because estate agents are scared of turning clients away. This agreement ties the buyer with the agent.
This is a polite way of saying that three weeks is the time limit in which your real estate broker has to find you a deal. Many people including buyers and sellers do not know is that they can amend their agreement later. Every form has space to add details. Before signing a ‘buyer-broker’ agreement, add an ‘opt-out’ clause. You have the power to opt-out without offering an explanation after the twenty-one-day trial period ends.
These are the terms that you can include:
- Agent to provide buyer with relevant properties that meet the buyer’s criteria such as area, price range, potential for value increase and profit.
- If the agent fails to provide qualified properties to buyer within the stipulated 21 days time period, buyer can opt out.
- Agent to fully communicate with the buyer.
- Agent to work with diligence to ensure that the offer is accepted.
- Agent to help with other resources to finance and sell properties for the investor.
- Agent to assist in finding buyers for the property.
- Agent to do his / her best to get buyers to buy investor’s property.
The idea behind this agreement is to have the opportunity to opt out of things amicably if things do not work out. Because at the end of the day, you are doing business and not conducting a social event! If you do not get what you need from your broker, you should be able to freely find someone who can help you without any feeling of guilt.
Rule # 1
The Deal is what you as an investor or buyer is after. The number 1 criteria for you is to get the deal, the property and the project. If your real estate agent cannot provide you with the deals which you can make you turn a sizeable profit then it is time to move on to the next agent.
Rule # 2
There is no rule # 2!
It is enough for you if your real estate agent can bring you great deals and nothing else. If you have a good line-up of great deals, you can adjust and work hard to compensate. You can still be a successful investor if all your real estate agent brings you is good deals. If he / she is a pro at that aspect then all is well.
Character, Personality & Charisma
These traits are the hallmarks of any successful individual. If your real estate agent does not have the above traits, then it is likely that they will not have the ability to find you the best deals. Your real estate agent will have to the qualities of tactfulness, social skills and the perseverance to coax high net-worth individuals to list their properties with the agency. If your agent lacks character, then run away and do not look back! If you have heard or seen them lying, cheating or taking undue advantage of people then it won’t be long before you are the receiving end of the same.
Do keep in mind that a successful real estate agent will be out there working hard on sourcing, financing and closing your deals. So as a buyer it pays to be considerate and respectful of that. You also have to remember that everyone has a life outside of their work. No one will be expect to be available for a client 24 / 7. It would also be wise not to expect instant communication off work hours or on the weekends. During a weekday, expect to receive at least a text or an email in return on the same day. If your agent does not respond to you regularly, then wait a few more days and then find yourself another agent. A lot of things can happen in two or three days and you do not want to miss the action due to non-communication from your estate agent.
What is your Real Estate Agent’s IQ
It goes without saying that your real estate agent must be more knowledgeable about the local market than you. If you find yourself needing to teach, inform or educate him, then it is time for you to find yourself another agent. This does not apply to inventories as it changes every day but rather general stuff regarding real estate and information pertaining to investing and property rates and other allied information in the local market. Your real estate agent must know all there is to know about investing, markets, lending, marketing, laws, contracts and much more. They do not have to a Ramanujan or a space scientist. But they just have to know real estate investing inside out.
At the end of the day, if you are a real estate speculator, investor or a home buyer then your real estate agent is your best friend. A bond needs to be developed between you and your real estate agent. If the connection is fruitful and positive, then by all means renew your agreement. If there is no bond, then success will be elusive.
Chloe is a dynamic real estate advisor who leads from the front and is highly passionate about helping buyers make informed choices. With superlative communication skills and an ability to hone in on the right properties for a given mandate, Chloe excels in exceeding client expectations. At Gupta & Sen, Chloe handles our real estate marketing strategy, research and client management.