Building a relationship with a dependable real estate agent can open up a lot of doors for both parties. For flippers, working closely alongside a real estate agent provides valuable inside knowledge about how property is bought and sold and what properties are up-and-coming in the market.
Unfortunately, both groups have had various misconceptions about the other, and these perceptions have made some flippers and agents reluctant to work together. Creating a relationship with a real estate agent may require some work, but by helping agents understand the specific needs of a real estate investor, you can create a beneficial partnership. So how do you go about developing this relationship?
1. Start with referrals
Networking is an important part of developing any successful business, including house flipping. If you're looking for a real estate agent that you can work closely with, ask around. Have you been investing in real estate for a while? There's a good chance that you've built a respectable network in the process. Ask some of your closest colleagues and business acquaintances if they can introduce you to a reliable agent.
2. Be honest and upfront
Real estate agents only want to work with flippers who are serious about their purchases. Nothing will send an agent running away faster than an investor who does not value their time and expertise. For this reason, it’s important that you gain the trust and respect of your real estate agent. As an investor you need to do your due diligence so that you are not pulling out of deals at the last minute because you’ve changed your mind or lack the proper funding.
3. Prove that you mean business
The best way to build a strong relationship with a real estate agent is to show them that you’re serious about doing business. Let them know that you intend to buy and flip a lot of houses. If you develop a relationship with them your goal is that they will have a steady stream of business when working with you.
4. Define your expectations
Once you start working with an agent, make sure to let them know what you expect from them right from the start. It’s up to you whether you want an agent that’s going to be involved in your process, offering input and helping make decisions, or if you want someone who’s only handling the offers and the paperwork. This will help the agent determine if this is the kind of relationship they want to develop as well.
5. Understand what the agent needs
Your real estate agent is working on commission, so the busier their month is, the better it is for them. If you’re planning on building a successful relationship with an agent, you’re going to have to prove to them that working with you will increase their revenue. This is where trust and honesty comes in. The last thing you want to do is promise an agent a busy month and fail to deliver, so be realistic about what you are able to provide on your end of the agreement.
Working with an agent
Real estate agents have a working knowledge of the industry that most flippers don’t have. Not only can they help you buy and sell houses, they can also give you valuable advice when it comes to spending money on renovations. For this reason, creating a professional relationship with a dependable agent is a smart business move that could increase your potential earnings and theirs.