Real estate agents have been a great help to many who want to invest in real properties. As there are hundreds of thousands of realtors out there, one should be able to choose an agent who are knowledgeable of the practice, who have a considerable amount of experience in guiding the investor to arrive at the right decision and whose objective match those of the investor's. Finding such qualities are never that easy. Below are five essential questions which an investor should ask to determine if the agent or broker he will hire is a sure fit for the job.
1. Do you invest in real estate yourself?
While it may sound as a simple and easy to answer question, but choosing a real estate agent who has invested in real properties himself illustrates the agent's credibility, a quality which is a must in the industry. Once the agent is able to establish his property investment then you may consider him not just for his potential to show you houses that are good to live in, but an effective guide in your own personal ventures as well. Moreover, as an investor himself, you can trust that he can see things from your perspective.
2. What is your business philosophy?
There is no right answer to this question, but the real agent's response will clearly indicate what he considers important you will be able then to assess how closely that agent's goals and business principles match with your own.
3. Will you analyse deals, whether they are good or bad, or just send me a list of properties?
Many of the practicing agents only make arrangements for the clients to receive a list or properties that fall within a particular price range or a specific location. This is but a lazy way of servicing a client and may result to the client's loss of interest for not being able to get what he actually wants. Keen investors expect more than just a listing, while the busy ones would definitely prefer agents who will do the analysis to make their decision making easier.
4. What marketing systems and approaches will you be using to sell my property?
Hiring an agent does not only require putting a 'For Sale' sign and then leave everything to chance. He should be responsive. He should likewise have innovative and aggressive approaches and the knowledge to competitively market the property on the internet.
5. Will you be making several offers?
An agent should be willing to do so and be able to offer less than what the appraisal dictates. Likewise, the agent should be sensitive enough to pick up and assess the prospective buyer's reaction when such offers are made.