The process of buying an investment property can be quite complex for a first-time real estate investor. Even though the internet has made it easier for anyone to find income properties on their own, there is still no substitute for a qualified and experienced professional. That’s why many real estate investors work with an investor’s agent who specializes in helping them find the best income properties. Working with a real estate agent who knows the market can save you a lot of money, time, and heartache in your quest to finding the perfect deal.
So what should you expect when working with a real estate agent? There are some important things that a real estate agent should be doing for an investor. Knowing what to expect from a real estate agent will help you weed out those whom you shouldn’t work with. The best real estate agents will do the following things for you when buying an investment property.
1. Helping you get pre-approved
Working with a real estate agent will help you in the process of getting pre-approved for a mortgage. A good real estate agent usually has a large network of trusted lenders, agents, and other professionals that are involved in process of buying investment property. Your real estate agent will connect you with a trusted lender that can take you through the pre-approval process.
In the preapproval process, the lender will verify your employment, income and also run your credit. This is an important step before you start shopping for an investment property. It will enable you to know the amount of money you can spend. So having a trusted professional by your side throughout the process to guide you can make everything go more smoothly.
2. Helping you find an investment property
Hunting for the best investment property can be a daunting task. Furthermore, most beginner real estate investors aren’t even sure how to find an investment property. Working with a real estate agent will make this process smoother. Good real estate agents know how to find real estate deals. They will help you clarify what you want most and help find options that can meet your specifications. They will counsel you on factors such as location, neighborhood, amenities, etc.
Based on what you are looking to achieve, your real estate agent should help you find the best locations and neighborhoods. If all a real estate agent is doing is moving you from house to house, you might want to find someone else.
3. Negotiating price and terms
Another important reason why you should be working with a real estate agent when buying an investment property is because of their negotiation skills. A talented real estate agent knows how to negotiate for the best price for your investment property and tip the scales in your favor.
Making an offer on a house is a critical moment when negotiating. The agent needs to have a comprehensive knowledge of the factors that affect the value of a property. They will analyze the value of the property you are buying and advise you on what the initial offer ought to be. They will also advise you on how to proceed accordingly when negotiating with the seller.
4. Handling paperwork
The process of purchasing an investment property usually involves a lot of paperwork. This can make the process very tiresome and time-consuming. The paperwork often includes the written offer, the signed counteroffer, and many other details required for making a real estate deal. A real estate agent knows all the required paperwork and will help in handling and organizing them for successful deal closure.
5. Helping you to find a home inspector
Just like all other professionals in the real estate industry, some inspectors are better than others. Working with a real estate agent will help you find the best possible home inspector in the area. An experienced real estate agent likely knows many local home inspectors and will help you choose one that is reliable.
Your real estate investor will also attend the home inspection and advise you on any other important inspections that may apply to the specific investment property you are considering. Even the best home inspectors can sometimes miss things. To ensure that there are no hidden problems with the property you are purchasing, your agent should attend the home inspection.
6. Helping you monitor your loan commitment
Another advantage of working with a real estate agent is that they will help you in monitoring your mortgage commitment. Excellent agents will also help you understand that you need to maintain your current credit status. First-time real estate investors are prone to mortgage mistakes. This could make it impossible to get a loan or cause the amount of loan available to you to be greatly reduced. Your real estate agent will monitor the status of your loan and offer advice on how to secure your approval.
7. Tackling deal closing problems
There are usually many details involved when closing a real estate deal. Sometimes issues may arise during deal closing which can be detrimental to the purchase of the property. Such issues may include pending loans by the homeowner, family tussles relating to the property, and title deed issues. Real estate agents are usually familiar with these issues and will advise you accordingly on whether to acquire the property or not.
The Bottom Line
A real estate agent is invaluable when you are trying to buy an income property, especially for beginner real estate investors. They will make the process much easier for you. As a property buyer, however, you ought to know what to expect from working with a real estate agent. You will be making a huge purchase that will cost you a lot of money. So you should ensure that you choose the right agent for you and that you build a good working relationship with him/her. Working with a real estate agent won’t bear fruit if you are not cooperative enough. A good relationship is usually a give and take.
You can find a real estate agent in many ways. For instance, you can ask for referrals from family and friends. You can also meet real estate agents by going to an open house or by looking them up online. You can also use Mashvisor to find the best real estate agents in your area across the United States.
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Regardless of how useful working with a real estate agent is, you should still do some analysis on your own. That’s because these kinds of skills are invaluable to a real estate investor. You can use Mashvisor’s real estate investment tools to conduct comparative market analysis. To learn more about how we will help you make faster and smarter real estate investment decisions, click here.