Like any other business, real estate investing needs to be carefully planned and seriously scrutinized. In an industry where competition is rampant, it is crucial to avoid making mistakes as much as possible. While there are many new investors starting out with the best intention of making a career out in real estate, only a few succeed.
Ideally, a working relationship between an investor and a real estate agent is a win-win alliance. However, there are a lot of misconceptions about these two characters in the real estate world. These problems usually start when an inexperienced investor chooses the wrong kind of real estate agent, thinking he or she is the one best suited for the job.
Here are the 3 most common mistakes new investors make when working with an agent:
Hiring an agent with the cheapest commission.
Newbies in the real estate business tend to think that they will be saving a lot of money if they choose an agent with the lowest commission, without thinking about how marketing and advertising their property can be expensive. To equate the situation, reduced commissions often means reduced marketing resources in promoting to get your property sold. So, don’t go with the cheapest but go with the best.
Not being honest with your real estate agent.
Agents are professionals trained to appraise properties in a manner that can be different from yours. In order to get your agent to best help you, provide him with the necessary details about your plans and expectations about the property. Lying or keeping things from your real estate agent can be toxic for your working relationship, especially if they find out about your deception and decide not to work with you anymore. Bottom line here is, without the necessary information, your real estate agent won’t be able to do their work for you correctly.
Thinking all real estate agents know the same thing.
One of the most common myths about agents is that they are all the same; therefore, they know the same things. Wrong. Real estate agents have different experience levels, different skills and different specialties that they have acquired after years of being in the business. Think of it this way, a real estate agent who deals with buyers may not have as much skills to sell a property than an agent who spent years selling them. Also, choosing the wrong real estate agent can affect your financial situation for years. You wouldn’t want to be financially burdened for the next 2-5 years just because you chose the wrong real estate agent.