Not every agent is perfect, but a majority of them put their best foot forward when it comes to representing their clients’ best interests. However, many real estate agents are accustomed to dealing with the typical condo or single-family home buyer. Investors have a different approach to buying, which is why both parties should prepare beforehand.
In order for agents to tailor their practice toward the unique needs of investors, consider the following tips.
Be market savvy
Many real estate investors are localized and therefore knowledgeable on their locale. While a buyer may only be interested in market fluctuations every 5 to 10 years, investors need to keep track of market activity almost constantly. Therefore, agents working with investors should provide all the details, including recently sold properties, price reductions and new listings. Agents can also help investors search outside of their typical scope by reviewing nearby towns that may present investors with a fresh – potentially better – opportunity. Unlike traditional buyers, investors don’t fall in love with a location, but rather the demand and activity within that area.
Don’t waste time on interiors
Much of the time, investors are ready to get their hands dirty. Buying an inexpensive property and making the updates can yield high returns, depending on the local market. Selling your investor client on finishes isn’t necessary. A fix and flip investor often prefers a project so they can get a cheaper deal and make a profit. Meanwhile, a rental property investor might focus on the accommodations renters favor. Concentrate on structural and land value versus the features investors have experience changing.
Adopt new technology
You’ll be hard-pressed to find an investor who prefers a slow close. Investors often make more offers than traditional buyers, so being efficient throughout the transaction is a key to success. Come equipped with electronic contract program for easy signing. Make quick response time your priority.
On the flipside, investors can help agents do a better job with the following strategies:
Provide clear instructions
If you’ve been investing in real estate and found your niche, you probably have a want list readily prepared. Let your agent know exactly what you are looking for and your expectations from them. For instance, if you prefer to view properties on the weekends, make that clear from the start so your agent has a good gauge of your scheduling limitations.
Be upfront about relationships
It’s not uncommon for investors to work with multiple agents depending on the market and/or price point. If you’re working two deals at once or recently closed with another agent in the area, let your new representation know. This way, your agent knows you’ve hired them for this specific transaction, but your needs could change in the future. They are less likely to be offended when they understand working with different agents is part of your routine and bottom line strategy.
Teaming up with another real estate pro offers numerous benefits, especially given the complexities of the industry. After all, working in the same field doesn’t always equal competition.