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Why Should I Use a Separate Realtor from the Listing Realtor?

Kansas City Investor and Realtor Browsing PropertiesIt may be tempting to think that, as an investor, you can find and buy Kansas City 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? While technically this is valid, there is one main problem with this form 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), difficult conflicts of interest may occur. Finally, using a listing agent to buy investment properties benefits just one person: the listing agent. To guarantee that you have proper representation in any real estate transaction, you need to have a buyer’s agent for yourself. In what follows, we’ll mention more about why you should hire your own real estate agent and how to avoid some of the pitfalls of striving to go it solo.

Why Not Use the Listing Agent?

There are multiple reasons why using a listing agent to buy rental properties is not recommended. One of the biggest of these is the potential for conflicts of interest. When a real estate agent lists a property, their principal responsibility is trying to get the best possible deal for the seller. This makes it very tough for the agent to help you get a great deal on the house since, likelihoods 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 might stop making the sale, which is also a significant disadvantage for you. Besides, 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 enough 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. In most instances, the seller pays the real estate agent’s commissions, not the buyer. With no money at stake, the person who stands to suffer 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 significant element of your investing team. There are various critical reasons for this.

First, as your agent, they will represent your interests (and only your interests) throughout the sales process. No matter how meticulous you are at making deals or negotiating prices, performing it all alone is both time-consuming and risky. The last thing you need is to create a disastrous mistake because of inexperience or running out of time. Real estate transactions can be troublesome. It would be better if you had someone who has the knowledge and expertise to guide the process from start to end skillfully.

Another critical reason why you need a buyer’s agent is for their industry connections and insider knowledge. An agent with skill in rental properties frequently has a professional network in place that can help you discover those bargain properties you’re seeking. Moreover, if your agent is well-known and has a great 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 Kansas City 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 Principles, 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 816-305-6476!

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