The selection process for a great agent
Choosing a real estate agent to help you in your search for investment properties when house flipping is usually a smart move. A good one will be able to narrow your focus, and run pointed searches for potential investment properties you may not be aware are currently on the market. They also can be invaluable in helping to negotiate your transaction once you locate a potential cash cow of a property. In addition, they can point you to the right local lenders that offer flipping money.
However, how do you go about selecting one, and not get stuck with an idiot? Besides the old tried and true method of having family or friends refer a Realtor they’ve worked with and like, then using that agent to represent you, try utilizing these three methods to select a good real estate agent to help you in your locating process when flipping houses…
Acid test #1
Call them. If your reach them, are they engaging, or do they simply not have time to speak with you, and blow you off? If you leave a message, will they return your call (either with a text or a call) within 10 minutes? If not, you’re using the wrong Realtor to aid you in your search for flip houses! Even if a Realtor is showing homes, they can easily text you back a template “I’m with clients right now” just to let you know they got your message. The way they treat you will be an easy indicator of how well they will work for you…
Acid test #2
Ask them to run a search for you. Be as specific as possible about what you’re looking for….include your price range, areas you’re most interested in purchasing in, as well as type and style of properties you’re looking for. They should be able to spit out search results to you within an hour. If not, move on to someone else – fast. Like acid test #1, you’re trying to locate an agent that works hard for your business – and speedy service is a great way to ascertain how willing they are to go the extra mile for you. In addition, speed is a necessary ingredient when locating houses to flip.
Acid test #3
When you locate a great potential acquisition for house flipping, ask them to run a Comparative Market Analysis (CMA) for you. CMAs take a good Realtor a couple hours worth of work to prepare properly. If they are simply using the software program built into their local Multiple Listing Service (MLS) to get their CMA prepared, do not use them! A good agent will take the time to go through and analyze – using their own head – each of many different comparable items (like lot size, building size, date sold, amenities, etc.). Then they will apply an amount to deduct or add to each comparable property relative to the property you’re considering buying (the subject property). It’s this attention to detail that should gain your business – and trust.
photos courtesy of tmgnorthwest.blogspot.com, orlando-mortgage.org, prw.net.au, money.cnn.com