With so many people in the real estate business nowadays, it can be a daunting task to choose the agent that fits your needs and goals. New homebuyers especially, in my opinion, should have someone confidently guiding them through real estate transactions while also being patient and considerate of their needs. I believe that agents that are also investors are well equipped to handle this, for a few reasons. First, I want to preface that agents that don’t invest are not necessarily at a disadvantage, and that admittedly I am biased in this situation as I am both an investor and agent. Let’s dive in.
Buying or selling a home, for the average person, I would say is not a common occurrence. I would take this a step further and say that it is probably a new process for most people. If you think about doing anything new for the first time, the natural feeling, at least for me, is uncertainty and discomfort. It doesn’t necessarily have to be this way, but when it’s your hard earned money on the line, who can blame you for being nervous? Agents that also invest their own money into real estate know this feeling all too well and are oftentimes the best people to have in your corner to navigate this. As an investor, you learn to remove your emotions from the deal and look at the facts objectively. As buyers and sellers, some of the biggest financial mistakes made have been fueled by emotion, this is why it’s important to have an agent that can provide guidance grounded in experience.
The second reason investor agents are valuable is because more than likely, an investor agent has probably had to negotiate in some capacity for their own investments. Negotiation is a skill paramount to representing a client as a real estate agent. It’s important to know how to help your client achieve their desired outcome while also navigating difficult conversations with other people involved. That’s not to say there aren’t investors that are terrible at negotiating, but generally speaking, they have some kind of experience negotiating.
Lastly, as a real estate investor, analytics is huge. People that invest often in real estate are constantly analyzing real estate markets, rental property, construction costs, and a myriad of other variables involved with the investment. This skill is also key when helping both buyers and sellers, even if it is not an investment property. Regardless of the type of home buyer you are (single family, multifamily, commercial) everyone should be analyzing their market, because after all, you can change most things about a house but you cannot change the location. Having an agent by your side that knows how to analyze markets and other areas related to your transactions is a huge benefit to you. It’s uncommon to find many agents well versed in this, but I’m willing to bet most agents that invest have a ton of analysis experience.
Regardless of whether an agent is an investor or not, like I always say, you want to have the best people in your corner to help you achieve your goal. Don’t skimp on this, your team is everything, whether you are buying or selling. Consider asking prospective agents what their personal experience is in real estate, and look at the big picture to figure out if they are well suited for your needs. Thanks for reading!