It may be tempting to think that, as an investor, you can find and buy Newport News rental properties on your own. After all, the listing agent for the property can show you around and handle all of the required paperwork, right? Although technically this is true, there is one major 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), serious conflicts of interest may arise. At the end of the day, using a listing agent to buy investment properties benefits just one person: the listing agent. To ensure 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 pitfalls of attempting to go it alone.
Why Not Use the Listing Agent?
There are a lot of reasons why using a listing agent to buy rental properties is not a good idea. 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 very difficult for the agent to help you get a great deal on the house since chances 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 reluctant to disclose any information that might prevent making the sale, which is also a major disadvantage for you. Plus, 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 truth is that it doesn’t cost the buyer anything to hire their real estate agent. Most of the time, the seller pays the real estate agent’s commissions, not the buyer. With no money in the balance, the person who stands to lose 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 big part of your investing team. There are several key reasons for this.
First, as your agent, they will represent your interests (and only your interests) throughout the sales process. No matter how good you are at making deals or negotiating prices, doing it all yourself is both time-consuming and risky. The last thing you need is to make a terrible mistake due to inexperience or running out of time. Real estate transactions can be difficult. It would help if you had someone who has the knowledge and expertise to guide the process from start to finish competently.
Another key reason why you need a buyer’s agent is for their industry connections and insider knowledge. An agent with experience in rental properties often has a professional network in place that can help you find those bargain properties you’re looking for. Plus, if your agent is well-known and has a good reputation, other agents may be much more willing to work with you to help you find and buy properties in prime locations.
Finally, if you are buying 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 offer detailed knowledge about the local market and help you know which areas to buy in and which to avoid, among other things. This is information you need that you won’t find anywhere else.
A great buyer’s agent is a real asset to any real estate investor. The same thing is true of a quality Newport News property management company. If you are looking for ways 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 VA Peninsula, 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 757-251-9188.
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