Turn about is fair play, and now Realtors specializing in investment properties are offering a list of the Top Eight ways investors make it so hard to help them. (also see Investor Gripes)
CREW canvassed real estate experts with decades of experience catering to investor needs. All offered some variation on the following list -- what CREW calls The Infamous Eight.
So if you think you're not getting the best from your Realtor, it could be you're making one, if not all, of these deal-killing mistakes.
Top Eight Mistakes Property Investors Make with Realtors:
1. Lying about how much buying power they have
“Often investors are not honest with respect with their buying power and how much cash they have available, or they hope they can reduce the price or get some miracle and find the extra cash down payment,” says Montreal Realtor Banny Bar.
2. Backing out of deals
“A lot of hard work and effort can go into putting a deal together,” says Edmonton-based Realtor Corey Young. “Sometimes because an investor is not emotionally attached to a property, the slightest thing wrong with the inspection or with financing and they can pull the plug. That can definitely be frustrating for a Realtor.”
3. Being vague about where and what type of property they want to buy
First-time investors are especially vague, point out several Realtors. Requests for “cash flowing” properties could be answered with a single family home in a suburb, or a 100-unit building downtown. Know what type of building, tenant and cashflow you need, says one frustrated real estate agent, as well as the neighbourhoods and price range that interest you.
4. Being goal phobic
“If an investor comes to us and says that they want to buy a condo investment, we usually ask ‘what for?’,” says Toronto Realtor Adam Brind. “If they can't give us a straight answer it means that we usually have our hands full.”
5. Expecting miracles from the Realtor
Bar has seen emails simply asking “Do you have any great deals?” without context or more information.
“I love those ones," he says. "My reply is: ‘Yes I do, how many hours have you got? And I charge $2,000 per day.’”
6. Failing to listen and communicate
You use a Realtor for a reason – their expertise in the market. If they make a suggestion or ask you a question and you don’t take the time to consider it, you’re probably limiting yourself.
“The clients that actually follow through and purchase or sell product are the ones that ask the good questions,” says Young. “They are the ones that respond with in depth answers to my questions.”
7. Assuming the developer is on your side
Hello, investors: developer has their own agenda, and it's really your Realtor who can help on issues such as picking the right floor plan for resale and weighing the adjacent land plans.
“It's important for us to remind new clients that we have existing relationships in the industry and that we're working for them - not the developer,” Brind says.
8. Having too many advisors
“Nothing is worse than working with an investor or first-time buyer that is getting mixed messages from various sources,” Brind says. “Very often we get investors that have 'relatives' in the business or 'semi-professional' friends that moonlight as real estate professionals.”
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