Thanks to a monopoly that real estate agents have with the Multiple Listings Service, one has to still deal with them as an investor, since a number of potential deals are available to them.
But it will be difficult as their interests lie solely in getting a commission as quickly as possible and which is why they prefer buyers with cash, good credit and strong buying power as we know it.
So, here are 3 tips to remember when dealing with real estate agents:
#1: Offer a reasonable amount for Earnest Money
Offering $50 in earnest money will result in an agent not taking you seriously at all. That’s just the way it is. Probably, a minimum cutoff would be as much as $500 and that would get their attention. If are making a solid cash offer, increase that amount. However, if you are afraid of losing it, do it by mean of promissory note.
#2: Offer a short closing date
Another way by which agents will take you serious is by offering a fast closing date. Just the idea of a commission check in a few days will tempt them more than anything else. Even if the agent gets another offer whose closing date is further away, they will still recommend your offer to their client for this reason.
#3: Appeal to their greed
Let’s face it: everyone is in the business of real estate to make a good amount of money. So, if the deal you are offering has little for the real estate agent, there’s no reason for him to make things work for you either. So, for this, make sure you leave an incentive for the real estate agent so that it’s a win-win situation. Simply put, appeal to his greed if one should call it that.