It may be tempting to think that, as an investor, you can find and buy Ellicott City rental properties independently. The listing agent for the property can show you around and handle all of the required paperwork, right? While this is legally correct, there is one fundamental 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), critical conflicts of interest may happen. At the end of the day, 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 by yourself. In the following, we will talk about why you should hire your own real estate agent and how to avoid some of the risks of handling it alone.
Why Not Use the Listing Agent?
There are multiple factors why using a listing agent to buy rental properties is a terrible choice. One of the most significant of these is the potential for conflicts of interest. When a real estate agent lists a property, their principal responsibility is trying to get the best possible deal for the seller. This makes it very hard for the agent to help you get an excellent deal on the house since, most likely, 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 unwilling to disclose any information that could jeopardize making the sale, which is also a huge disadvantage for you. In addition, 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 safer to use listing agents to buy properties because it will save money. But the certainty is that it doesn’t cost the buyer anything to hire their real estate agent. More often than not, the seller pays the real estate agent’s commissions, not the buyer. With no money at stake, the person who will suffer 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 an essential element of your investing team. There are numerous important reasons behind this.
To begin with, as your agent, they will represent your interests (and only your interests) throughout the sales process. Irrespective of how good you are at making deals or negotiating prices, managing it alone is both time-consuming and risky. The last thing you need is to make a horrible mistake owing to inexperience or running out of time. Real estate transactions can be tricky. It is important to have somebody with the knowledge and expertise to guide the process from start to completion properly.
Another critical reason why you need a buyer’s agent is for their industry connections and insider knowledge. An agent with expertise in rental properties regularly has a professional network in place that might assist you in finding those bargain properties you are looking for. Moreover, if your agent is recognized and has a great reputation, other agents may be much more willing to work with you to help you find and buy properties in prime locations.
Lastly, 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 thorough knowledge about the local market and help you understand which areas to buy in and which to avoid, among other things. This is data you need that you won’t find elsewhere.
A great buyer’s agent is a real asset to any real estate investor. The same thing is true of a quality Ellicott City property management company. If you are looking for ways 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 Metro, 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 410-290-3285!
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