Real Estate salespeople

[wtoews]

Is there anything saying that I can`t have 2 different agents working for me, One doing the selling and the other as a buyer?
I have 2 agents in mind but think that they are better suited for one or the other.
Since I will be mostly buying for the next little while would it be better to go with the one I think can get me better deals on these.
Any help or comments would be appreiciated.

Thanks Warren

 

[jarrettvaughan]

QUOTE (wtoews @ Jan 20 2009, 06:03 AM) Is there anything saying that I can`t have 2 different agents working for me, One doing the selling and the other as a buyer?
I have 2 agents in mind but think that they are better suited for one or the other.
Since I will be mostly buying for the next little while would it be better to go with the one I think can get me better deals on these.
Any help or comments would be appreiciated.

Thanks Warren

Hi Warren,

I think that your concept is fine as long as you are clear and honest with the agents up front. The last thing you need is for them to find out at some networking event that they are both working for you and that you had not been upfront with you reasoning.

If you are going to be buying for the next couple years, it may also be most productive to pour your time into the buying agent while developing a slower relationship with the selling agent.

One last thought...............there are a lot of agents out there, cant you find one who is great at both?

 

[RedlineBrett]

I agree with Jarrett, try to find an agent that can do both for you.

I always give awesome breaks on listing fees for clients that use me to buy their next place after they sell. Very common actually. You should be able to simplify your business by centralizing your agency work and also save some $$ on fees while you`re at it.

QUOTE (jarrettvaughan @ Jan 20 2009, 06:24 AM) Hi Warren,

I think that your concept is fine as long as you are clear and honest with the agents up front. The last thing you need is for them to find out at some networking event that they are both working for you and that you had not been upfront witth you reasoning.

If you are going to be buying for the next couple years, it may also be most productive to pour your time into the buying agent while developing a slower relationship with the selling agent.

One last thought...............there are a lot of agents out there, cant you find one who is great at both?

 

[EdRenkema]

QUOTE (RedlineBrett @ Jan 20 2009, 09:44 AM) I agree with Jarrett, try to find an agent that can do both for you.

I always give awesome breaks on listing fees for clients that use me to buy their next place after they sell. Very common actually. You should be able to simplify your business by centralizing your agency work and also save some $$ on fees while you`re at it.


Thats a nice gesture and good business but if my agent is running of his feet how would it go over if I ask him for a discount.

Here`s another situation, someone has approached me about a great cashflowing unit in an area I`m already invested in, they want to do a private deal. I want to bring in my buying agent to help me structure and present the offer and to ensure I conver my rear and purchase at good present value.
What fee should I suggest paying my agent???

 

[Dan_Eisenhauer]

We won`t get much of a deal on the buying end, unless our agent rebates a portion of the commission to us, because the commission is preset by the listing agent.

However, if we have developed a long relationship with our Realtor and have purchased and/or sold a number of properties through him/her, it is not unusual for a Realtor to cut us some slack on the selling commission.

I can see no advantage to using two Realtors, one for selling and one for buying. By picking one we get to develop a terrific friendship with that person that will likely last for years. He/she will probably be more than willing to extra effort for us knowing he/she is our only Realtor.

I have now completed 3 deals with my Realtor. However, we have written more than 10 offers... 5 in one day... knowing that most would not come together. It is the building up of a relationship that makes YOUR Realtor willing to do this.

 

[RedlineBrett]

QUOTE (EdRenkema @ Jan 20 2009, 09:54 AM) Thats a nice gesture and good business but if my agent is running of his feet how would it go over if I ask him for a discount.

Here`s another situation, someone has approached me about a great cashflowing unit in an area I`m already invested in, they want to do a private deal. I want to bring in my buying agent to help me structure and present the offer and to ensure I conver my rear and purchase at good present value.
What fee should I suggest paying my agent???

If you have sent continuous "low drama" business to your agent I wouldn`t think it out of place to ask for a valued customer discount. Especially if you are using him to buy your next place. Listing fees are after all coming directly out of your pocket while buyer fees are being paid by the person you are buying from.

When I give someone a break on my fees I also tell them I expect two good referrals from them to help me make up the difference. Then everyone is a winner.

In the investment property business every nickel counts and a good agent should be helping their clients make that bottom line shine and not taking their continued business for granted.

Regarding your second point your best bet is honestly to let your agent do the talking. Your agent can work for you as your representation and treat the seller as a "customer". If you are already sure this is the property you want and all you need your agent to do is write up a contract and make sure everything goes to plan they can take a little less than a full fee. If it`s a run of the mill property let`s say the $ amount is $7,500. Well, then your agent just needs to make up their $7,500 by getting it off the asking price. Let them handle the way the fee is to be paid out (a good agent can work this into the contract in a simple way that is an easy sell to the seller) and then your agent is working for you in a buyer agent capacity same as it would be for any regular MLS deal.

 

[EdRenkema]

QUOTE (RedlineBrett @ Jan 20 2009, 12:46 PM) Regarding your second point your best bet is honestly to let your agent do the talking. Your agent can work for you as your representation and treat the seller as a "customer". If you are already sure this is the property you want and all you need your agent to do is write up a contract and make sure everything goes to plan they can take a little less than a full fee. If it`s a run of the mill property let`s say the $ amount is $7,500. Well, then your agent just needs to make up their $7,500 by getting it off the asking price. Let them handle the way the fee is to be paid out (a good agent can work this into the contract in a simple way that is an easy sell to the seller) and then your agent is working for you in a buyer agent capacity same as it would be for any regular MLS deal.


Might work but the seller already has worked the discount into the deal and split it between the two of us, as far as I can tell he is close, I need to work in a VTB since my investor only has so much funds to invest, I don`t want to scare off the seller, I can see this is a good deal as far as good cashflow, have yet to view it but the seller does keep his properties in good condition - I know that much.

 

[DaveRhydderch]

QUOTE (wtoews @ Jan 20 2009, 06:03 AM) Is there anything saying that I can`t have 2 different agents working for me, One doing the selling and the other as a buyer?
I have 2 agents in mind but think that they are better suited for one or the other.
Since I will be mostly buying for the next little while would it be better to go with the one I think can get me better deals on these.
Any help or comments would be appreiciated.

Thanks Warren

Hi Warren,

Lots of good info here. I actually have a question as a Realtor who is constantly trying to do better. Why do you think one agent will be better as a buyer and one as a seller? Thats a very intriguing observation to me.

 

[Thomas Beyer]

QUOTE (wtoews @ Jan 20 2009, 06:03 AM) Is there anything saying that I can`t have 2 different agents working for me, One doing the selling and the other as a buyer?
I have 2 agents in mind but think that they are better suited for one or the other.
yes absolutely .. as long as they know what the expectation is .. the selling agent also presumably has a listing agreement with you ?

On the buy side, usually one is insufficient, unless you fish in a very small pond, say a town or area with 2,000 people. If you buy, say in Calgary, I would have 4 or 5 in a different area of city each .. again unless you buy only 2BR townhouses between 1000 and 1250 sq ft with a single car garage in a 5 by 8 block radius easily coverable by one agent.

 

[RedlineBrett]

Curious Thomas... Why is it you think one agent can only work such a small area or specific property type? 5x8 blocks??

QUOTE (thomasbeyer2000 @ Jan 20 2009, 04:01 PM) yes absolutely .. as long as they know what the expectation is .. the selling agent also presumably has a listing agreement with you ?

On the buy side, usually one is insufficient, unless you fish in a very small pond, say a town or area with 2,000 people. If you buy, say in Calgary, I would have 4 or 5 in a different area of city each .. again unless you buy only 2BR townhouses between 1000 and 1250 sq ft with a single car garage in a 5 by 8 block radius easily coverable by one agent.

 

[Thomas Beyer]

QUOTE (RedlineBrett @ Jan 20 2009, 04:42 PM) Curious Thomas... Why is it you think one agent can only work such a small area or specific property type? 5x8 blocks??
because no one can be an expert on a single asset class across a very large area like Calgary .. maybe a quadrant like NE, maybe ..

 

[Nir]

Interesting strategy Thomas,

I can see why working with a number of agents in the same city can work Great. However, there is a catch - only if it creates a Win Win for most agents. Thomas, you can afford working with a few agents because it brings (reasonable) income to most if not all your agents. However, the average investor will not buy at the same pace or price per property as you. Therefore, while I can see the benefit for you, it is probably not feasible for the average investor who can not build such a relationship with 5 agents within the same city.
Example: if I buy 2 properties a year, one or more agents needs to wait 3 years to see any income from doing business with me. Not exactly “it’s been a pleasure working with you” scenario

Anyway, nice strategy because it is very true that the more brains you (can) employ the better you will do, even within the same area (again, as long it creates a Win Win for most if not everyone involved).

Cheers,
Neil

 

[Thomas Beyer]

QUOTE (investmart @ Jan 20 2009, 08:45 PM) Example: if I buy 2 properties a year, one or more agents needs to wait 3 years to see any income from doing business with me. Not exactly “it’s been a pleasure working with you” scenario

It is independent of $s spent.

Let`s also assume the agent has more than one potential client !

Tell him: I am buying 2 properties this year. here is my description: size, age, $ amount, .. area ..

I want you to focus on area A and I have a 2nd agent for area B and a 3rd for area C as they each are experts in that area.

Since many listing are on MLS anyway, the only advantage an agent has in insider knowledge in an area / in his network.

Using only one or a few (buying) agents is not to your advantage !!

 

[wtoews]

QUOTE (DaveRhydderch @ Jan 20 2009, 12:52 PM) Hi Warren,

Lots of good info here. I actually have a question as a Realtor who is constantly trying to do better. Why do you think one agent will be better as a buyer and one as a seller? Thats a very intriguing observation to me.


Mostly just on the personalities of each realtor.
I had one before who worked very well for me in a selling role when I sold my last house but but might not be as much of a people person as this other agent I have found.

Example: One is very personable, and interactive, while the other is more of a get things done attitude.
I`m sure that they are both very capable realtors, I was just curious if there would any advantage to it having Happy, smily realtor doing my selling and serious, grind out the best deal realtor buying.

 

[RedlineBrett]

QUOTE (thomasbeyer2000 @ Jan 20 2009, 09:03 PM) Since many listing are on MLS anyway, the only advantage an agent has in insider knowledge in an area / in his network.

Using only one or a few (buying) agents is not to your advantage !!

I can`t say I agree with this!

It is quite easy for an agent to cover a much larger area... My partner and I work the NW and SW quite easily. For our area of specialty (investment property) there really aren`t THAT many listings that are truly great deals. By narrowing down search criteria with a few exceptions it is possible for a single agent to stay plugged into the whole city if they wanted. The "agent only" version of the MLS combined with a recent copy of the city`s survey and land use bylawy are quite powerful tools... if you haven`t seen the MLX get your agent or one of your army of agents (

) to show you!

Also, there is the concern of customer loyalty... if I have a client that is using me exclusively for every deal they do or one that is "assigning" me work and using x number of other agents in the same area who is going to get the best service or have their special requests met sooner? Where is the incentive for the agent to go that extra mile and truly provide exceptional service? I wouldn`t work with a client like that, I would rather invest my efforts into building a dedicated relationship with another client. I suspect you will only attract business from lower quality agents that "really need the sales" and will be left micromanaging a lot of your acquisition business this way.

IMO, the only way to do what you prescribe is to work with a BROKERAGE that has agents that meet your criteria in all of your areas of interest. You could work direct with the broker and have him/her delegate your specific search requirements to employees of his. If you`re dangling a dozen+ sales a year you might get some traction.

 

[EdRenkema]

QUOTE (RedlineBrett @ Jan 21 2009, 10:54 AM) Also, there is the concern of customer loyalty... if I have a client that is using me exclusively for every deal they do or one that is "assigning" me work and using x number of other agents in the same area who is going to get the best service or have their special requests met sooner? .

I agree, the agent(s) I work with in different cities go the extra mile for me and I respect and appreciate that effort, especially if they already have more than enough business and are exceptionally good at what they do. If their performance or lack of it affects my bottom line I will look elsewhere, that`s business, untill then they don`t waste my time why would I waste theirs?

 

[Dan_Eisenhauer]

Thomas, we finally found something to disagree on.

I agree with Brett, and his analysis of working with one agent. You used Calgary as your example. I don`t know Calgary well, but I think I know it and how the world of Realtors work well enough to comment.

It is not possible for any given Realtor, no matter how good he/she is, to know of every good deal that is going to work its way onto MLS. This may tend to support your argument. But, let`s carry that one more step. You would need to know and have a good working relationship with EVERY sales rep in order to learn of each and every property before it went MLS. That is not practical.

In addition, next to none of those "pocket listings" gets sold prior to going MLS. What a recurring buyer really needs is a well informed Realtor who can give advice on those new MLS properties. Every Realtor now gets notice of new listings that meet the criteria they are searching for, so instant notification is not the selling point it was 15 years ago. We need knowledge and experience as an edge; and most Realtors know their city very well, with few specializing in a given area. (Prior to surrendering my license I did specialize in condos in North Van. But I was the rarity.)

Calgary is not that big that you need a NE expert and a SW expert, etc. Vancouver, as an example, is different, with the North Shore, Surrey, Fraser Valley, etc being its own unique enclave. In fact, the Fraser Valley has its own real estate board, even though you can`t really tell when you are leaving Greater Vancouver and entering the Fraser Valley.

There is no way that in a smaller city, such as Red Deer, one would need two or more Realtors, IMHO.