It may be tempting to think that, as an investor, you can find and buy San Fernando Valley rental properties all alone. After all, the listing agent for the property can show you around and handle all of the required paperwork, right? While this is strictly correct, there is one significant problem with this method 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), severe conflicts of interest may come up. In conclusion, using a listing agent to buy investment properties benefits just one person: the listing agent. To be sure that you have proper representation in any real estate transaction, you need to have a buyer’s agent of your own. In what follows, we’ll clarify more about why you should hire your own real estate agent and how to avoid some of the disadvantages of trying to go it single-handedly.
Why Not Use the Listing Agent?
There are numerous reasons why using a listing agent to buy rental properties is not a sensible move. One of the biggest of these is the potential for conflicts of interest. When a real estate agent lists a property, their primary responsibility is trying to get the best possible deal for the seller. This makes it extremely hard for the agent to help you get a great deal on the house since, possibilities are, 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 would prevent making the sale, which is also a big disadvantage for you. Furthermore, 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 better to use listing agents to buy properties because it will save money. But the actuality is that it doesn’t cost the buyer anything to hire their real estate agent. Oftentimes, the seller pays the real estate agent’s commissions, not the buyer. With no money at stake, the one who suffers the most by not having their own representation is you.
Why You Need a Great Buyer’s Agent
As a rental property investor, a great real estate agent should be a major piece of your investing team. There are a few key purposes behind this.
Primarily, as your agent, they will represent your interests (and only your interests) throughout the sales process. Setting aside how knowledgeable you are at making deals or negotiating prices, performing it all on your own is both time-consuming and risky. The last thing you need is to make an awful mistake because of inexperience or running out of time. Real estate transactions can be problematic. It is imperative to appoint someone who has the knowledge and expertise to guide the process from beginning to end.
Another primary factor why you need a buyer’s agent is for their industry connections and insider knowledge. An agent with competence in rental properties regularly has a professional network in place that helps you identify the bargain properties you need. In addition, if your agent is notable and has a decent 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 buying properties sight unseen, you need somebody local you can trust to be your “boots on the ground,” so to speak. As your agent, they can offer thorough knowledge about the local market and help you decide which areas to buy in and which to avoid, among other things. This is essential data that you will not find anywhere else.
An excellent buyer’s agent is a real asset to any real estate investor. The same thing is true of a quality San Fernando Valley property management company. If you’re 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 West San Fernando Valley, 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 818-727-0100!
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