Partnering with an exclusive real estate agent as an investor has the power to save you thousands and shield you from bad deals. Even as a seasoned real estate investor, having an experienced agent on your team will help you grow your portfolio. Understand the type of agent you need and how their specialty skills can help you succeed.
Types Of Real Estate Agents
You need an agent who works exclusively to your benefit. These are the three types of agents:
- Buyer’s Agent: Real estate agent who works exclusively for the buyer of a property. A buyer’s agent will be your partner and mentor while investing in real estate. Plus, the cost of an agent is free to you as a buyer as the agent’s commission falls on the seller.
- Listing Agent: Real estate agent who works exclusively for the seller of a property. A listing agent cannot legally help or advise a buyer in any way. Their sole job is to bring in the best offer for the seller.
- Dual Agent: Real estate agent who can represent both the buyer and seller in any single transaction. While the agent can represent both parties, they can advise neither. This type of agent may not be allowed in your state. The dual agent benefits the most in this situation, being paid both sides’ commission.
The buyer’s agent is the most desirable for any real estate investor. Using a listing or dual agent obviously leaves you in a situation where your best interest isn’t the focus.
Partner With A Buyer’s Agent
Working with an experienced buyer’s agent gives you an advantage in three distinct ways.
Your agent will care about your success because when you succeed, they succeed. A buyer’s agent keeps money in your pockets by recognizing real estate pitfalls and mistakes that are common to beginning investors. Let’s say you want to purchase a beach property to turn it into a short-term rental. Your real estate agent will be able to warn you against local municipality regulations that say homes must be rented on a minimum 12-month basis. By recalculating potential rental income, you can decide if the property is worth the purchase.
Secondly, a buyer’s agent is legally obligated to serve your best interests. The agent can warn you against too high prices, negotiate that the seller pays closing costs, or fight for certain repairs to be made. Your agent fights for you to have the upper hand in each step of the buying process.
Lastly, a strong buyer’s agent can serve as a long-term team member. As you explore different areas of real estate investment, like condos, wholesale, or flipping, your agent can act as a guide. By answering questions, researching property, and helping you make the best deals, your agent secures your trust and can be a long-term asset to your investment team.
Research buyer’s agents in your market. Read reviews, recommendations, and review the agent’s past deals. Ensure your personalities mesh well and that the agent enjoys teaching clients. You’ll learn profitable tips from the agent and ideally build a partnership that grows your portfolio.