It may be tempting to think that, as an investor, you can find and buy Newington rental properties all alone. After all, the listing agent for the property can show you around and handle all of the required paperwork, right? Even though this is true, there is one main problem with this way of thinking: the listing agent represents the seller’s interests, not yours. Furthermore, when a listing agent has a dual agency (representing both the seller and the buyer), substantial conflicts of interest may occur. Finally, using a listing agent to buy investment properties benefits just one person: the listing agent. To guarantee that you have proper representation in any real estate transaction, you need to have a buyer’s agent for yourself. In this article, we will examine more about why you should hire your own real estate agent and how to avoid some of the drawbacks of doing it alone.
Why Not Use the Listing Agent?
There are numerous reasons why using a listing agent to buy rental properties is a bad idea. One of the most serious 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 is not easy for the agent to help you get a good deal on the house since, probably, 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 hesitant to disclose any information that might affect making the sale, which is also a significant disadvantage for you. Additionally, 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 afterward, there are those rental property investors who think it’s smarter 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. Usually, the seller pays the real estate agent’s commissions, not the buyer. With no money at stake, the person who actually loses 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 significant factor in your investing team. There are a few key explanations for this.
To start with, as your agent, they will represent your interests (and only your interests) throughout the sales process. Regardless of how great 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 because of inexperience or running out of time. Real estate transactions can be difficult. It would be beneficial if you had someone who has the knowledge and expertise to guide the process from beginning to end effectively.
One more important reason why you need a buyer’s agent is for their industry connections and insider knowledge. An agent with knowledge in rental properties usually has a professional network prepared that can help you locate those bargain properties you’re searching for. In addition, if your agent is familiar and has an excellent reputation, other agents may be much more willing to work with you to help you find and buy properties in prime locations.
Ultimately, 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 provide comprehensive knowledge about the local market and help you identify which areas to buy in and which to avoid, among other things. This is important data that you will not find anywhere else.
A good buyer’s agent is a real asset to any real estate investor. The same thing is true of a quality Newington property management company. If you are searching for approaches 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 Hartford Metro/Greater New London, 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 860-436-9955!
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