Benefits of using an agent to find and buy an investment property
September 1st, 2008 by Howard Edward Haller, Ph.D.Part 1 of 2
There are quite a few benefits to having an experienced real estate agent on your team when you’re buying and selling investment properties. And who would understand these advantages better than one of the country’s top agents? John Beutler, CCIM, CRS, has been the No. 1 agent in his local market of Coeur d’Alene, Idaho, for 22 years, and he was the world’s No. 1 Century 21 agent in 2003 and ’05. The owner of an award-winning Century 21 franchise, he spends the majority of his time in the trenches.
Haller: What are the key advantages to using a knowledgeable local real estate agent to find and negotiate a real estate purchase?
John Beutler: Whether you’re buying or selling, you are your own worst negotiator; you’ll always give up more, or give away more, than you have to. By using a middleman to negotiate for you, you’ll typically walk away with a better deal. That’s always been my experience.
Haller: What special resources, information, or talents can a sharp local real estate agent provide an investor who is looking for potential investment properties?
JB: Real estate agents already have strong working relationships with title companies. And many are knowledgeable foreclosure specialists who will have up-to-date information on the foreclosures in your local market. Getting the knowledge on a foreclosure first is critical; knowledge is the key to success in buying foreclosures. Another important point is that a foreclosure specialist can help an investor establish the accurate “as-is” value for the foreclosure property.
Haller: How can a licensed real estate agent honor his fiduciary duties to a seller while still providing excellent real estate investing opportunities to an investor?
JB: The key to this issue is full disclosure. It’s true that an agent has a fiduciary and contractual duty to the seller. The agent has an obligation to protect a seller’s personal information and any underlying reasons as to why he is selling. In addition, the agent must not even hint to the client’s lowest acceptable selling price. But, with the seller’s permission, an agent can disclose any information. Plus, information such as bankruptcy and divorce filings are available on the public record, so this type of information shouldn’t even be an issue.Personally, I submit all offers to sellers, and I’d encourage any investor to make any offer he wants. Just be honest and be fair. A good agent is in the business for the long term, not just to make an individual sale or commission.
Haller: What sort of insider information can an agent offer to investors who want to find highly motivated sellers — those who need to sell their property without repairs on an as-is basis?
JB: One of the top resources an agent can provide an investor, or any homebuyer, is his or her market knowledge — we just know the area.Agents have access to the entire MLS, which contains important information on the listings for sale in the local area, as well data on recent property sales. Using this information, the agent can establish the accurate as-is value of the property, as well as the value after the necessary repairs. These figures are critical as the investor analyzes the potential deal.The agent can also provide critical information as to the true value of a non-listed FSBO property that an investor may be looking to buy.
Next: Why you should use an agent to sell your investment property.
Source: Growing Wealth
