It may be tempting to think that, as an investor, you can find and buy Forest Hills rental properties by yourself. In essence, the listing agent for the property can show you around and handle all of the required paperwork, right? Even though this is strictly true, there is one serious problem with this style of thinking: the listing agent represents the seller’s interests, not yours. And when a listing agent has a dual agency (representing both the seller and the buyer), critical conflicts of interest may transpire. Ultimately, using a listing agent to buy investment properties benefits just one person: the listing agent. To safeguard that you have proper representation in any real estate transaction, you need to have a buyer’s agent of your own. In the following, we will give clarification on why you should hire your own real estate agent and how to avoid some of the risks of doing it personally.
Why Not Use the Listing Agent?
There are many reasons why using a listing agent to buy rental properties is a terrible choice. One of the greatest of these is the potential for conflicts of interest. When a real estate agent lists a property, their key responsibility is trying to get the best possible deal for the seller. This makes it very challenging for the agent to help you get a good deal on the house since, in all probability, that will not be a priority for them. Legally, the listing agent cannot advise the buyer on anything related to the sale. They may not be inclined to disclose any information that could block making the sale, which is also a big disadvantage for you. Furthermore, if there are multiple offers on the property, the situation can quickly become very complicated and put your chances of a sale at risk.
And then there are those rental property investors who think it’s convenient to use listing agents to buy properties because it will save money. But the truth of the matter is that it doesn’t cost the buyer anything to hire their real estate agent. Normally, the seller pays the real estate agent’s commissions, not the buyer. With no money at stake, the person who will struggle the most by not having their representation is you.
Why You Need a Great Buyer’s Agent
As a rental property investor, a great real estate agent should be a central feature of your investing team. There are several major reasons behind this.
Initially, as your agent, they will represent your interests (and only your interests) throughout the sales process. Irrespective of how capable you are at making deals or negotiating prices, managing everything yourself is both time-consuming and risky. The last thing you need is to make a mistake because of inexperience or running out of time. Real estate transactions can be problematic. It is essential to have someone with the knowledge and expertise to guide the process from beginning to end efficiently.
Another vital reason why you need a buyer’s agent is for their industry connections and insider knowledge. An agent with knowledge in rental properties frequently has a professional network in place to help you locate those bargain properties you’re looking for. Besides, if your agent is well-known and has an excellent reputation, other agents may be much more willing to work with you to help you find and buy properties in prime locations.
To finish, if you are purchasing properties sight unseen, you need someone local you can trust to be your “boots on the ground,” so to speak. As your agent, they can give comprehensive knowledge about the local market and help you decide which areas to buy in and which to avoid, among other things. This is information you need that you won’t discover somewhere else.
An incredible buyer’s agent is a real asset to any real estate investor. This is exactly the same for a quality Forest Hills property management company. If you are searching for approaches to add to your investment portfolio and grow your rental property business, these are two experts you simply can’t do without. At Real Property Management Innovation, our group works with rental property investors like you to help make your rental property investing as profitable as it can be. Contact us online today for more information about our great services, or at 516-570-9275!
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