The internet has virtually reduced the world to a global village, making it easier than ever for investors to search and buy properties anywhere in the world.
But with the wealth of information available online, a beginner investor can’t help but ask: Do I really need a real estate agent to buy a property? What help can an agent offer that I can’t find online? And wouldn’t I save money if I just cut the middleman and buy the property myself?
Well, the simple answer for new investors is, ‘you need a real estate agent.’
If you’re planning to buy property for investment purposes, one of the best real estate advice we can give is to seek the help of a real estate agent. Here are some of the benefits of working with a real estate agent when buying investment property.
1. Provide Information on the Current Housing Market Conditions
No one understands the prevailing market conditions better than real estate agents. And as a beginner property investor, this information can be very valuable for your business and future prospects.
Real estate agents can provide you more information about the housing market than you can find online. They are well versed with all aspects of real estate including how various factors such as unemployment and high interest rates affect the market.
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By analyzing all the information, including average sales prices, the ratio of list-to-sold prices, average costs per square foot of similar houses, and factors driving demand in certain regions, you’ll be armed with all the data you need to make an informed investment decision.
2. Education & Experience
If you hire an experienced realtor, you don’t need to know the intricacies of the buying process. Most realtors have been working in the property market for years and will guide you on everything you need to know about investing in real estate.
By virtue of their education, training, and experience, most agents are familiar with the best real estate investment tools and property analysis. They know that rental property performs better than stock and will advise you accordingly. And if you’re looking into investing in rental property, they will give you ideas on how to venture into rental property with no down payment.
3. Buffer Between You and the Seller
Real estate agents are master negotiators. They act as the middlemen between you and the seller and ensure everything is done flawlessly and within the stipulated time.
As such, having a real estate agent can help relieve the anxiety of dealing with the seller and many other parties involved.
Real estate brokers also hire agents to facilitate transactions and close more deals. As a broker, building your real estate team of agents is key to growing your business. But to investors, real estate agents are the key to unlocking investment opportunities and growing their portfolio.
4. Extensive Knowledge of the Neighborhood
An experienced local agent is your best tour guide when looking for an investment property. They have the whole neighborhood at the palm of their hands and can provide information about safety, demographics, amenities, and popular housing trends in that region.
Moreover, they can provide valuable information about the neighborhood, such as upcoming construction projects that might impact property prices in the future. Also, they often have information about For Sale by Owner (FSBO) properties that are not listed, thus giving you more buying options that otherwise would be hard to discover on your own.
The Bottom Line
Even if you’re an expert in real estate, there is no danger in seeking professional help, especially if it relates to matters of investment property. Hiring a real estate agent can open you up to new opportunities and help to close deals faster. As a beginner investor, though, you most likely need their expertise more than you even realize. One caveat here, is that all agents are not created equal – make sure you interview several before selecting the best one to work with. A good agent can help make you a better investor – picking a bad agent, though, can also be a very costly mistake.
