Finding a Good Real Estate Agent
Filed under: Real Estate Investing, Real Estate Agents
Finding a real estate agent is no problem. Their FOR SALE and SOLD signs are everywhere. Their ads are on cable TV. Anyone you know who has bought or sold real estate recently has probably used one. For me, finding a good real estate agent means finding someone with a really good knowledge of the local area, and who is hardworking and communicative of his or her knowledge. This is probably the description of most successful real estate agents.
When I first started, I used real estate agents as simple door openers to see houses. I followed them in my car rather than ride with them, just to keep my independence. I missed a lot, because a good real estate agent can be a great help to you. While there are some bad agents, the majority are hardworking and reliable. Agents are a great source of information on property opportunities. Have them work for you. The more properties you see, the better idea you will have of what’s on the market and the more ready you will be to act when you see a good deal.
As self-employed, independent contractors, most real estate agents put a lot of time and energy into their deals. Contrary to what you are likely to hear, agents don’t make big bucks, because they usually have to split the agent’s commission with a real estate brokerage company. The kind of brokerage company that agents are associated with can affect what they offer to their clients. Brokerage companies come in three kinds: traditional brokerage companies, real estate services companies, and agent service bureaus.
Traditional Brokerage Companies
The independent real estate agents in your community are likely to be associated with traditional brokerage companies. The traditional brokers restrict their activities to brokerage, and thus the agents associated with them are free to refer you to lenders and service providers of their own choosing.
Real Estate Services Companies
If you want a lot of professional advice and service in a one-stop shopping arrangement, an agent who works with a real estate services company may have more to offer you. The majority of these companies belong to a national franchise, such as Century 21. Their agents have the freedom to make independent referrals, like agents who work with traditional brokerage companies do.
Agent Service Bureaus
Agents pay fees rather than percentages of their commissions in this arrangement and thus favor higher price properties to cover their costs. RE/MAX is the biggest franchise in this area.
