Sometimes when in the process of getting started in real estate investment, hiring a real estate agent to help you tends to be of consideration.
Real estate agents are registered people who make a living by helping real estate investors acquire or sell properties to potential customers.
Some real estate agents are good at their professions while others are poor, and both are in the market to make a living. The beginning of a downfall in property investment is hiring the wrong real agent. It will cost you money and time and you don’t want that to happen.
Below are some of the tips that we have put together to help you select the best agent.
Knowledgeable of the Area
A real estate agent should have a deep understanding of the area in question. Factors like land rates, the zoning in the area among other important factors should be at their fingertips. This will shield you from buying a property that will not suit your intended purpose of investment.
They should be able to know the rent for properties in the area. This will help you make an informed decision on whether to buy land and build or buy an existing house in the area and rent it out.
Leveraging all this information as an investor will help you to select a fair-priced property in the market.
You don’t have to buy overpriced property. You deserve the best.
One reliable way that you can filter the right real estate agent is by checking for reviews online and recommendations from family members, friends, or just other investors in the area.
There is usually one or two persons out there who can offer you some recommendations about the agent you are vetting.
If you are dealing with a real estate company, you will always find a review online especially on their google my business or its social media pages.
The right Designation
Oftentimes, real estate agents could be skilled in listing a property, other agents could be skilled in purchasing a new property.
Since you are looking to buy a piece of land in this case, you should only look for a buyer’s agent because that one, better understands the contracts of buying properties and the transactions process involved.
In addition, you need to vet and hire only experienced buyer’s agents, this will save you from unforeseen pitfalls common in real estate for novice investors.
Reasonable service fee
One thing that new real estate investors get drained of is the commissions of the agent. Whenever you see an agent charging more than 6% of the property value, then be prepared to ask what you will get that is exceptional from the normal services.
The common market fee for agent’s services ranges between 5% – 6%. This fee is usually negotiable, so brush your negotiation skills so that you can pay less.
Have Favorable contract
Some real estate agents, especially companies selling plots, tend to have seller financing which allows the buyer to book the plot of land with a small amount of money and then pay the balance in installments. The buyer is given the title deed only after completing the payment.
Although it can be a good idea to engage seller financing, most of such contracts tend to protect the seller more than the buyer. So be sure to have a lawyer to guide you before locking yourself in contracts that you don’t have contingencies or back out plan.