When you’re buying and selling houses an inexperienced real estate agent can really block your deals.
***On March 20th I’ll be doing a LIVE workshop on How to Get a Wholesale in less than 30 days! So, if you’re new or perhaps struggling to generate deals then this workshop is for you!
In our years of buying and selling real estate, we have had the privilege of working with some really terrible agents.
In this video, I’ll not only share those stories but also show you how to overcome them and still get the deal done. I’ll also show you what it is we do to avoid this problem altogether.
Make sure you stick around till the end as I’ll share with you how to get real estate agents bringing you great deals.
The real estate agent that causes the most trouble is the NEW real estate agent.
They don’t understand the market yet, the properties, and how it all works.
In the market that we’re in, last I heard we’re around 16K+ agents in SA ALONE!
iPhone With roughly 4600 listings and keeping in mind that usually 20% of agents do 80% of the listings that leaves 12,800 agents fighting for 920 listings!
Let’s find out how to work successfully with one of these agents.
REAL STORY
We had a property we had just renovated. We dropped about $65K in it. We did foundation, roof, plumbing, the works.
Buyers go see the house and they love it! We get an offer at asking… this great right?
Well, we send over all of the docs and the buyers FREAK out! In those docs is the foundation warranty.
They did not want a house that had foundation problems! Mind you, this is Texas. When I first moved here I was told “there are two types of houses here, those that have foundation issues and those that will have foundation issues.
We actually ended up losing that buyer and the house went from AO to BOM. That’s never good.
THE PROBLEM
Real Estate Agents must set and manage the expectations of their clients. But when the agent is either new or hungry for a commission this DOESN’T happen.
The buyers come wanting rainbows and unicorns and instead of the real estate agent saying, “Well how about we go for what the market can actually provide?”
THE SOLUTION
You have to educate these realtors first before they bring anyone to the house.
You tell them what work has been done, what work hasn’t been done.
It’s now YOUR job to help these realtors set the right expectations.
SUCCESS STORY
Here’s how we handled this on the next house…
We have transitioned more towards doing more wholetailing houses because of the low inventory that we’re seeing in San Antonio.
You can see both the walkthrough of this deal by clicking here on the video or you can find the link in the Related Episode section in the Description and you can also catch the full training I did about Wholetailing Houses there too!
In doing this strategy we bought a house cleaned it up and did some minor things to put it back on the market.
We got offers on it right away! But, one thing we made sure to do was SET EXPECTATIONS! So my business partner and real estate agent, John Barr, told the agent what we did and the current conditions of the house.
If you’re wondering why the hell we would do this, keep in mind that it does NOT help you if you “hide” things and then they find out anyways from the inspection and end up backing out. Time is MONEY!
So the realtor relayed the message to the buyer and they went to see it. They still wanted it. Now was the time for the inspection report!
Nothing happened! Why? Here’s the beauty of setting expectations… buyers and sellers that are NOT real estate pros tend to over-exaggerate things. If they’re the seller, nothing is ever “that bad” but as a buyer, it's ALL TERRIBLE!
Any minor repairs the buyer doesn’t know about they think will cost a fortune. But because we told them the house needed work and that’s why we priced it at that price the buyer now thinks, “Ok, this what the house needs and that’s why I’m getting it for this price”
Get it? Makes Sense?? Do you see how powerful this is?! Hit that thumbs up!
How to get real estate agents bringing you deals?
Reach out to realtors who work in the areas you want to buy in, and simply tell them this…
“If you can bring distressed properties in which you know will NOT qualify for traditional financing, I’ll buy them and give them back to you to sell when they’re fixed up”
Why does this work?
If the house won’t qualify for financing then the only buyer for it most likely will be a real estate investor. This means a LOW price.
So you’re essentially telling the agent, do you want 3% of 70K or 3% of 200K?
Depending on the market you’re in you might want to pay them a “marketing fee” for bringing you the deal too.
Just think, “How can I stand out from everyone else?”
📽 ✂ Video editing is done by Director Dre Day
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