It may be tempting to think that, as an investor, you can find and buy Milford rental properties personally. Nevertheless, the listing agent for the property can show you around and handle all of the required paperwork, right? Although this is theoretically true, there is one critical problem with this way 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), crucial conflicts of interest may take place. In the end, using a listing agent to buy investment properties benefits just one person: the listing agent. To ensure that you have proper representation in any real estate transaction, you need to have a buyer’s agent of your own. In what follows, we will give an explanation of why you should hire your own real estate agent and how to avoid some of the drawbacks of trying to go it by yourself.
Why Not Use the Listing Agent?
There are numerous reasons why using a listing agent to buy rental properties is not a good option. One of the most significant of these is the potential for conflicts of interest. When a real estate agent lists a property, their main 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 decent deal on the house since, likelihoods are, that it will not be a priority for them. Legally, the listing agent cannot advise the buyer on anything related to the sale. They might be reluctant to disclose any information that might prevent making the sale, which is also a major disadvantage for you. Likewise, 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 beneficial to use listing agents to buy properties because it will save money. But the reality is that it doesn’t cost the buyer anything to hire their real estate agent. Typically, 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 key component of your investing team. There are several key reasons for this.
At first, as your agent, they will represent your interests (and only your interests) throughout the sales process. No matter how effective you are at making deals or negotiating prices, doing it all alone is both time-consuming and risky. The last thing you need is to commit an awful mistake as a result of inexperience or running out of time. Real estate transactions can be difficult. It would be great if you appoint someone with the knowledge and expertise to guide the process from end to end expertly.
Another significant reason why you need a buyer’s agent is for their industry connections and insider knowledge. An agent with expertise in rental properties often has a professional network in place that may help you find these bargain properties you’re seeking for. Also, if your agent is recognized and has a decent reputation, other agents may be much more willing to work with you to help you find and buy properties in prime locations.
In conclusion, if you’re buying 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 deliver broad knowledge about the local market and assist you in identifying which areas to buy in and which to avoid, among other things. You will never find this kind of information anyplace else.
A good buyer’s agent is a real asset to any real estate investor. The same applies to a quality Milford property management company. If you’re looking for methods 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 Diamond, 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 302-313-7700!
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