Why You Should Consider Hiring an Investor Friendly Realtor
Real estate investing can get costly if you’re not careful. It may be tempting to forego hiring a real estate agent and do it yourself if you’re working with a limited budget. Although there are scenarios where this makes sense, hiring an agent can save you money if you are newer to investing. Every investor is unique, and every deal is different. There may be reasons to avoid hiring a realtor if the commission doesn’t justify the need. But realtors can help you avoid costly mistakes and save you money in the long run, especially if you are still learning the ropes. Here are a few ways that hiring an investor-friendly realtor can be beneficial to your career.
Save You Time
Hiring an agent allows you to outsource some of your workload and free up time to crunch numbers or work on other deals. Successful investors don’t do everything themselves; they know how to delegate. You may overlook important details or miss out on certain opportunities if you’re too busy handling paperwork or other minutia related to closing a sale. Hiring a good real estate agent can help alleviate some of that burden so you have more time to focus on the big picture items.
Help You Find a Better Deal
Realtors often have access to certain databases and networks that civilians can't access alone. They are also willing to pay for resources to help their business that wouldn’t make sense for an investor to purchase. They will also help you negotiate to secure the best price on a property and give you advice and data to help you support your claims. A good broker will pay for themselves by helping you make a profit that exceeds what you could do on your own, even with the commission.
Give You a Better Perspective on the Market
No matter how long you’ve been investing, there are certain things a real estate agent will know about a local market that you don’t know. Good realtors know their territory like the back of their hands and will be able to help you see gaps in your strategy before they become an issue. They will be able to keep their ears and eyes on the street while you’re preoccupied with turning a profit.
Say, for example, you did a successful flip in one neighborhood and now you’re looking at a property in a similar neighborhood nearby. When you initially look at the comps, they seem similar. But, little do you know the local school board has plans to rezone, which will impact the property values in the neighborhood you're looking at. In this scenario, a good realtor will be aware of this change and could help you reassess the situation to ensure the deal still works. Unless you live in the area or you're tapped into activities of the local government, it may be difficult to stay on top of this kind of information on your own.
Ultimately, whether you decide to hire a realtor to help with your investment business depends on your experience level and the comfort with the market you’re working in. You may be better off solo if you’re buying a house in your own neighborhood and you have a steady stream of local connections to rent it to. But a realtor can provide professional expertise and a sense of checks and balances that can keep you from making expensive errors. It’s something you should consider if you’re just starting or working in an unfamiliar market.