When it comes to investing in real estate, making informed decisions is always critical. That means finding a realtor that you mesh with, and who understands what you want and why.
This is what we will be discussing today – finding the right realtor who will suit your needs and can help you purchase the best investment property (or properties) for your portfolio.
- How To Find A Realtor for Investment
- How To Decide Between Realtors
- Shopping Around for Investment-Focused Realtors
How To Find A Realtor for Investment
There is certainly no shortage of real estate agents out there. There is a great supply of agents who want your business, with some being great overall, and then some that might not be the right fit.
If you are searching for a realtor, the ways to find them include:
Online – As with most businesses these days, there’s plenty of selection for realtors online that you can browse at your leisure.
You can tell, for example, if a realtor is on the ball by checking out their website, their socials, and especially their reviews.
Friends, Family, Contacts, Neighbours – Friends, family, colleagues, and even neighbours are connections you have out of the gate who might be able to point you in the direction of a good realtor.
Brokerages – You are probably aware of some of the real estate brokerages in your city or town. You can always start there, by reaching out and asking some questions. They will be more than happy to find you an agent who can get you started on your journey.
If you’re buying in a different city or region, it’s always a good idea to speak with a brokerage that’s local to where you want to buy your investment property.
How To Pick A Realtor for Investment
Now that we’ve outlined some of the ways you can find someone to start with, let’s look at how to pick the best suited agent.
Online Image – As mentioned before, studying their online presence is key, because it can tell you a lot about them in terms of their popularity, what they specialize in, how up to date they are, and generally how they operate as a business person.
Market Knowledge – While market knowledge is a key factor for any realtor, it’s especially important when it comes to investment.
Dive deep into the numbers with the prospective agent. Ask about the market, the outlook for the year, what opportunities can be found for investment, what return to expect, and so on.
Additionally, dive into the strategy they have for finding the ideal investment property, or conversely if you’re selling, how will they bring the best possible buyer to you.
When discussing both the market and the strategy, be sure to focus on specifics and on practical, actionable points. If the realtor is being vague, unfamiliar with the market, or seeming like they’re just reciting off a script, that can be a bad sign.
Knowledge of the Local Area – Similar to market knowledge, understanding the local area, knowing what is in it, and what benefits or drawbacks come with living in a certain locale, is a crucial skill for any real estate agent.
In the case of investment, it becomes that much more important. A realtor that is truly familiar with the area you’re looking to buy in can help maximize the return on your property purchase and make a big difference to your bottom line.
138 THICKSON RD N, Whitby, L1N3R2
138 Thickson Road, Whitby, Ontario L1N3R2More
3 LITTLEBECK CRES, Whitby, L1P0G3
3 Littlebeck Crescent, Whitby, Ontario L1P0G3More
51 OAKDALE Court, Kitchener, N2P2S9
51 OAKDALE Court, Kitchener, Ontario N2P2S9More
580 BEAVER CREEK Road Unit# 266, Waterloo, N2J3Z4
580 BEAVER CREEK Road, Waterloo, Ontario N2J3Z4More
6 KRON DR, Guelph, N1G3E2
6 Kron Drive, Guelph, Ontario N1G3E2More
150 WATER Street N Unit# 1010, Cambridge, N1R0B5
150 WATER Street, Cambridge, Ontario N1R0B5More
125 MILL Street E, Elora, N0B1S0
125 MILL Street, Elora, Ontario N0B1S0More
6 KRON Drive, Guelph, N1G3E2
Guelph, Ontario N1G3E2More
Shopping Around for Investment-Focused Realtors
You can start by making a list of realtors that you might like to call and talk to, and make a few notes on what you think you like about these people.
Some realtors, as you go along, are going to stand out as being better than most at what they do, and so you want to keep your options open for a while, and then slowly narrow it down.
Don’t make any quick commitments until you talk to at least a few realtors who seem to sync up with you and your goals. Try interviewing them, and see how they react to your questions.
There are a lot of free consultations out there, so take advantage of those. Meet these realtors in person, if you can, or at least get on the phone with them, or maybe do a video call. The more you talk to these people, while keeping an open mind, the more you’ll get closer to making a decision on who you’d want to work with.
Here are some key questions you should keep in mind when it comes to discussing investment properties with realtors who will potentially represent you:
- Does the agent know about the local area?
- Does the agent know about prices and values in the market?
- Has the agent worked with investors before?
- Does the agent explain the numbers and what the bottom line for you as an investor will be?
- Does the agent go into detail about pros and cons of each property?
Red Flags for Investment
At the same time, be on the lookout for the following red flags:
- Pressure to commit to a specific property
- Doesn’t grasp the numbers, or numbers are vague
- Doesn’t understand the local area and market
- Bad communication
It’s important to do your due diligence when shopping around for a real estate agent. As mentioned above, take your time, create a list, narrow it down, and interview your favourite candidates.
If you have any questions about investment, or the real estate journey in general, we’re always happy to help!