How Can an Agent Help?
Successful real-estate agents keep track of their local markets on a daily basis. That's critical, because other investors are on the lookout for properties and homebuyers are always searching for a deal. The most desirable properties just don't last. By establishing a relationship with one or more agents, you will be among the first to hear about new opportunities.
Should real-estate investors become agents?
Real-estate agents are usually required to disclose that they are licensed agents — an immediate turn-off for some “for sale by owner” sellers, sometimes called FSBOs. Agents must also comply with specific advertising guidelines and other state and federal laws. Hold off until you're sure a license will help.
Working with a real-estate agent simplifies some of your research. Most agents have access to a local multiple listing service (MLS), a conglomerate of agencies that have decided to band together to show and sell each other's listings.
Agents can research properties sold through the MLS as easily as they can view current listings. Knowing the sales history of properties is a real plus because it allows you to find out exactly how much each property sold for without having to dig through local public records. Working with an agent who actually viewed those sold properties can help you make even better comparisons, since the agent will have personal knowledge of each property's condition at the time of sale.
An agent may refer to MLS printouts of sold properties as comps, or comparables. They look exactly like the MLS sheets for current listings, but they also include the listing and sale date, the sales amount, the name of the selling agent, and sometimes even the type of financing used. Comps help you make comparisons to determine a current listing's market value.
Buying Listed Properties
Using an agent is the only way to access properties listed with a real-estate agency, so it's best to prepare for that ahead of time by finding a good agent now. Don't let the agent forget about you — make occasional contact even if you work mostly with FSBO properties.
Selling and Leasing Properties
You may decide that you want to use an agency to sell and lease your own properties, especially if you own real estate that's located a long distance from home. Hiring an agency is a good choice when you don't have the time or expertise for effective marketing or if you own a unique property that could be handled better by a specialized professional.
