It may be tempting to think that, as an investor, you can find and buy Vinton rental properties unaccompanied. Ultimately, the listing agent for the property can show you around and handle all of the required paperwork, right? Even though this is technically true, there is one significant problem with this mode of thinking: the listing agent represents the seller’s interests, not yours. Plus, when a listing agent has a dual agency (representing both the seller and the buyer), serious conflicts of interest may transpire. Lastly, using a listing agent to buy investment properties benefits just one person: the listing agent. To make certain that you have proper representation in any real estate transaction, you need to have a buyer’s agent of your own. In this post, we will talk about why you should hire your own real estate agent and how to avoid some of the risks of trying to perform it all alone.
Why Not Use the Listing Agent?
There are a couple of explanations why using a listing agent to buy rental properties is a bad idea. One of the most alarming of these is the potential for conflicts of interest. When a real estate agent lists a property, their major responsibility is trying to get the best possible deal for the seller. This makes it very hard for the agent to help you get a good deal on the house since, presumably, 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 doubtful to disclose any information that might prevent making the sale, which is also a big 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 fact is that it doesn’t cost the buyer anything to hire their real estate agent. Generally, the seller pays the real estate agent’s commissions, not the buyer. With no money at stake, the one who truly affects 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 integral feature of your investing team. There are many significant reasons for this.
First of all, as your agent, they will represent your interests (and only your interests) throughout the sales process. Despite how impressive you are at making deals or negotiating prices, doing it entirely by yourself is both time-consuming and risky. The last thing you need is to commit an awful mistake due to inexperience or running out of time. Real estate transactions can be troublesome. It would be advantageous if you had someone who has the knowledge and expertise to guide the process from start to end efficiently.
Another important reason why you need a buyer’s agent is for their industry connections and insider knowledge. An agent with experience in rental properties normally has a professional network in place that can help you find those bargain properties you’re looking for. In addition, if your agent is well-known and has an outstanding reputation, other agents may be much more willing to work with you to help you find and buy properties in prime locations.
At last, if you are acquiring properties sight unseen, you need someone local you can trust to be your “boots on the ground,” so to speak. As your agent, they may give in-depth knowledge about the local market and help you determine which areas to buy in and which to avoid, among other things. This is critical information that you will not get somewhere else.
A decent buyer’s agent is a real asset to any real estate investor. The same may be said for a quality Vinton property management company. If you are searching 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 Colonial, 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 540-595-7411!
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