subject: Working With Realtors [print this page] Yes you should be working with Realtors in your business. Realtors should be trained to bring you deals and you should be listing deals with them as well. The downside of working with Realtors is that most dont have a clue about the investing side of the business. All most know is how to stick a sign in a yard, put a property on the MLS and hope to make a commission. If they only knew that the serious money was in the equity of the investments then they would stop working for a commission. But we do need Realtors so well let them keep the commission meanwhile, well keep the equity, cash flow, and profit.
When working with Realtors you need to prescreen them just like you would prescreen a seller or a buyer. They dont need to fully understand how you do what you do, they just need to understand your goals. Let the realtor do what they do best (hopefully sell your houses), so that you can do what you do best (find and structure more deals to resell).
Here are some basic reminders when creating relationships with realtors:
* You should strive to always create a win-win relationship.
* You need to always be in control. This doesnt mean that you take advantage of someone, it simply means that if progress is not being made to your liking then you can consider other alternatives without restrictions.
o Create a simple agreement between you and the Realtor that reads something like:
I ____________________ (the listing agent) hereby agree to cancel any current or future property listings if requested to do so by the above mentioned seller at any time and for any reason unless a contract is in place between seller and a buyer. Additionally, if a buyer is brought to the table by the seller then I agree to cancel the listing agreement on said property for no commission.
* You need to have regular communication with the Realtor, and the Realtor with you. Have a weekly conference call to discuss what is working and what isnt. If a house isnt selling, it is the Realtors job to ask potential buyers why they didnt want it. Perhaps the problem can be fixed.
* There needs to be an understanding of flexibility with the Realtor. Sometimes you may ask the Realtor to un-list or re-list based on your situation. If your realtor is unable to give you this amount of flexibility then they cant be your Realtor. Typically the smaller local brokerages are best to work with.
* There needs to be a level of trust between you and your Realtor. Without trust the relationship is doomed to fail.
* Find your Realtor by being proactive and keeping an eye out for the movers and shakers in your area. Once you find a few, interview them and determine if a win-win working relationship can be established.
Lastly, take care of your Realtor. Let him/her know how much you appreciate all the work that they do. Reward them with other incentives and cash when appropriate. Make it a joy and privilege for a Realtor to do business with you.
