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Investors identify single-biggest Realtor beef

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Guest | 22 Jun 2012, 08:02 PM Agree 0

A recent CREW online poll asked readers to tell us what was the single biggest way a Realtor had let them down. The results are in and more than half said “Not doing their research” was an agent’s biggest failing.
“If they’ve flooding my inbox with listings and leaving it to me to sift through, they’re adding zero value,” investor Greg Head told CREW. “Make it easy for me; don’t just send me MLS listings.”
It’s not just researching the property, another investor says Realtors don’t always take the time to understand what their investor client wants. Getting the details at the start of the hunt will reduce the number of duds investors have to look at.
The poll results suggest almost a third of Canadian investors think Realtors had oversold a property to them, perhaps describing it as having more potential than it really had.
The final category, “Lumping your needs in with owner-occupying clients,” received 17% of the vote.
That may explain another bit of investor advice to their peers. Find an agent who is also an investor, a way of ensuring he or she has both experience and the expertise.
  • Bruce M. | 22 Jun 2012, 09:12 PM Agree 0
    We have been given 2 ears and 1 mouth...it's all about listening.
  • SGNU Team | 23 Jun 2012, 02:29 PM Agree 0
    If you know what you are doing then, you can identify a deal and it's "true" potential regardless of what anyone is trying to sell you. If you depend solely on the Relator to do your homework then you should not invest.

    A good Relator should however, have the ability to identify and screen listings effectively as well as the ability to negotiate the deals in a manner that will have your best interest in mind and not just the "standard" terms of an agreement.
  • Paul Kondakos | 24 Jun 2012, 10:53 PM Agree 0
    Investing in properties, as any other discipline, requires an understanding of the fundamentals.

    Many times you will find that Realtors understand in theory what makes a good investment property, but they lack the experience of actually owning or managing an investment property.

    My piece of advise to anyone who is looking to invest is to ensure that:

    1. YOU understand the fundamentals of investing in real estate. Your agent has a fiduciary duty to have your best interests at heart, but sometimes the thought of closing a deal may cloud their judgement

    2. Make sure your agent is either an investor themselves or has had experience managing investment properties. There is certain knowledge about investment properties that can only be gained through experience. For example insurance premiums on wood frame v. block construction are higher. It may seem like a small point, but there are many of them and cumulatively they can make the difference between a good investment and a poor investment.
  • Brian Matthews | 26 Jun 2012, 03:38 PM Agree 0
    It's no wonder....many in Toronto are trying to off-load cash flow negative condos on the sole thinking of capital appreciation. Many don't understand the tax implications, and many other issues for either condo, or freehold income properties. Also every investor is different as well, some buy and hold, some flip, some buy/improve/hold and the list goes on. I find myself turning away more people who call themselves investors these days in the Toronto market, because they won't sit down and talk about what their goals are, they are confused about cash flow, and seem to have their priorities on making very quick cash and are putting themselves at great risk.
  • Richard St-Pierre | 26 Jun 2012, 04:02 PM Agree 0
    I also would like my real estate agent to provide the data required to assess properties. In some cases, I think it's a matter of telling the agent what we want.

    Agents either don't have the time or don't take the time to provide the data, or, don't want the responsibility associated in providing investors with calculated data.

    I simply wish my agent could provide complete data in a downloadable format, where I could easily copy and paste into my spreadsheet to assess properties quickly.

    I have asked for this and based on the response from my agent, the system is not designed to provide me with the data in the format I need.

    I find much of the data within listings is missing, estimated / not believable, due to listing agent laziness or difficult owners (?).
  • Theode K | 03 Jul 2012, 01:05 PM Agree 0
    My advise is for an investor to only deal with realtors who also either manage investment properties or own investment properties. These realtors appreciate what I am trying to do & understand what I need in order to make money as an investor. However, I never expect the realtor to provide me with more than the raw data because in my opinion, I need to remain responsible for the due diligence.
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