In a meager attempt to get the ball rolling on this blog, I decided to throw together a quick Top 10 list. Really, I could go on and on about why you should use a REALTOR®, and I had a tough time cutting this list down to just 10 reasons. The benefits far outweigh any reasoning against it. Now, I’ll admit, there are MANY ‘unqualified’ REALTORS® out there, who are not investors themselves, have never done a deal, and really have no clue what a great deal is. Obviously, as a buyer of Investment Property, you would search out the Professionals who specialize in Investments and make the best decision possible before hiring the guy who left a magnetic calendar on your front door. Let’s move forward…

10. Trusted Name Reputation
9. Required to Stay Current with Education
8. Knowledge of the local and national markets, and knows what a great deal is
7. Duty to protect their client’s best interest
6. Licensed by the State & Required by Law to Follow Specific Guidelines
5. Access to MLS where the great majority of property is listed
4. Gives accurate, unbiased Fair Market Values
3. Purchase Contracts & Inspection Periods!
2. Solid Network of Professionals in the Industry who refer deals!
1. FREE!

10. Trusted Name Reputation - As a REALTOR® your name and reputation IS your business. It’s a people business, and if you’re not trusted in the Industry, you’ll starve. Yes, it makes me sick to see the business card with the wife, kids, and retriever all cuddled up together, and I wonder how much business they get off of those car-wraps we see everyday on the freeway. But you have to give them credit that if they had a bad reputation, they surely wouldn’t be plastering it all over their car!

9. Required to Stay Current with Education- The State mandates that you have a specific number of credited hours of education every couple years to maintain your license. Beyond that, there’s not a day in my life that I can’t open my email, go to the office, or talk to my Team without hearing about a seminar, education event, luncheon, etc going on. It’s next to impossible to avoid it! Staying educated is just a day in the life.

8. Knowledge of the local and national markets, and knows what a great deal is- Again, prefacing this statement with choosing a good REALTOR®. They’ll know which cities, towns, neighborhoods are selling fast, and which are dead. They’ll know which floorplans and type of property sells quickly, and which may have some functional obsolescence. Not only that, but they’ll know what housing is worth in each market, and be able to sort the good deals from the bad.

7. Duty to protect their client’s best interest- Plain and simple, it’s their job and responsibility that comes with being licensed. Recording Artists, Actors & Professional Athletes have managers for a reason. A Licensed Agent’s sole purpose in life is to make sure you are not making any mistakes when buying or selling Real Estate- legally, financially, ethically. This is why we’re required to be…

6. Licensed by the State & Required by Law to Follow Specific Guidelines- yes, the State controls certain things that we can and cannot do, and I assure you, they are diligent about it! We have set laws, guidelines, and codes of ethics we must abide by, and we’re held to it, legally.

5. Access to MLS where the great majority of property is listed- it doesn’t take a P.H.D. in Astrophysics to figure this one out. The majority of people who sell their homes use a REALTOR® to do so. I can print out the Sunday paper classifieds, ebay, craigslist and <enter your favorite FSBO site here> and it still won’t compare to the action you see on the MLS. When Joe Public’s dog is sick, they see their vet. Joe goes to his lawyer when he’s in a car accident. He also calls his plumber when he can’t install that new sink correctly. The majority of the public calls their Agent whenever it’s time for any Real Estate transaction. Divorce, Probate, Relocation, Downsizing, UpSizing, Kids moving away from home- you name the situation, and I guarantee people are calling their Agent to help them with the sale of their home. What’s this mean to us investors? DEALS, and TONS OF THEM!

4. Gives accurate, unbiased Fair Market Values- This is a personal issue I have here. Out of the thousands of deals I have analyzed from Wholesalers, Auction Companies, or FSBO ads- I have never, EVER seen someone give an accurate value of what the property is worth. They’re always inflated above the true market value in order to make the deal nicer on paper, and fill their bank accounts quicker. A good Agent will give true, unbiased comps and evaluations of what the property is worth, as well as the surrounding market conditions.

3. Purchase Contracts & Inspection Periods, oh my! Yes, hire a Licensed Agent and you’ll use a Standard, State-issued purchase contract, addendums, and forms. Not only that, but you’re entitled to an Inspection Period and Inspection Report of the property! I challenge you to find a wholesaler out there willing to give that up easily. I can’t tell you how many investors I have seen get burned by buying property at the Auctions or from wholesalers without Inspections and Inspection Periods. It’s not a pretty sight.

2. Solid Network of Professionals in the Industry who refer deals! Licensed Agents associate daily with other agents and professionals in the industry. You can’t do a Real Estate Transaction without meeting a Title Agent, Loan Officer, Inspector, Tradesmen of various trades, other Realtors, etc etc. The key here is that each one of THESE people associate with other professionals in the industry on a daily basis as well! When tapped properly, it’s an ocean of deals flowing right to your portfolio. It’s tough to find anyone in the industry who doesn’t have a lead on a good deal- it’s just up to your Agent to tap those sources!

1. FREE! It amazes me everyday that people still don’t realize that it’s FREE to hire a REALTOR® to help you purchase property! That’s right, it costs you nothing to hire an Agent to represent you as a buyer. The seller of the property is the one responsible for paying Broker commissions in a standard transaction. There’s literally no cost for you to hire an Agent to represent you and make sure your ducks are in a row. As an Investor myself, I know we’re always told you can’t find a good deal using an Agent. The seller’s pay too much in commissions to warrant a deal with enough equity. If you compare this to the ’small markup fee’ wholesalers charge before flipping the property to you, you’d be shocked. I was a wholesaler 6 years before getting my license. I can assure you that I am finding just as many good deals for me and my clients as a Licensed REALTOR® as I ever did as a wholesaler without it.

Well, there you have it. My quick, Top 10 Reasons to use a Realtor for all your Real Estate Investment Purchases. I hope that shed some light for some of you, and I look forward to the next articles to come! Please feel free to post a comment!

UPDATE- Here’s a great post to reiterate my points.