It may be tempting to think that, as an investor, you can find and buy Windsor rental properties on your own. Ultimately, the listing agent for the property can show you around and handle all of the required paperwork, right? Although this is theoretically correct, there is one big problem with this means 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), serious conflicts of interest may arise. To sum up, using a listing agent to buy investment properties benefits just one person: the listing agent. To see if you have proper representation in any real estate transaction, you need to have a buyer’s agent of your own. Following this, we will illustrate more about why you should hire your own real estate agent and how to avoid some of the dangers in attempting to do it on your own.
Why Not Use the Listing Agent?
There are many reasons why using a listing agent to buy rental properties is not a good idea. One of the biggest of these is the potential for conflicts of interest. When a real estate agent lists a property, their primary responsibility is trying to get the best possible deal for the seller. This makes it almost impossible for the agent to help you get a great deal on the house since, possibilities are, that will not be a priority for them. Legally, the listing agent cannot advise the buyer on anything related to the sale. They may be afraid to disclose any information that might stop making the sale, which is also a huge disadvantage for you. Also, 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 some rental property investors who think it’s ideal to use listing agents to buy properties because it will save money. But the fact is that it doesn’t cost the buyer anything to hire their real estate agent. Regularly, the seller pays the real estate agent’s commissions, not the buyer. With no money at stake, the person who stands to lose 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 big part of your investing team. There are several key reasons for this.
In the beginning, as your agent, they will represent your interests (and only your interests) throughout the sales process. Despite how capable you are at making deals or negotiating prices, accomplishing it all on your own is both time-consuming and risky. The last thing you need is to make a terrible mistake due to inexperience or running out of time. Real estate transactions can be troublesome. It would be helpful if you employ someone with the knowledge and expertise to guide the process from start to finish skillfully.
Another significant factor why you need a buyer’s agent is for their industry connections and insider knowledge. An agent with practice in rental properties commonly has a professional network within reach that may assist you in locating these bargain properties you’re looking for. Aside from that, if your agent is well-known and has a good reputation, other agents may be much more willing to work with you to help you find and buy properties in prime locations.
To conclude, if you buy 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 provide you with extensive knowledge about the local market and assist you in discovering which areas to buy in and which to avoid, among other things. You won’t find this kind of knowledge anyplace else.
A skilled buyer’s agent is a real asset to any real estate investor. The same thing is true of a quality Windsor property management company. If you’re seeking strategies 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 of the Rockies, our team 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 970-658-0410!
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