Investor Advantages as a Licensed Realtor or a Network of Realtors
The idea of a Realtor has evolved dramatically over the decades, especially in the last decade with our dependence on smartphones. The image we have in our head of a Realtor is often more nostalgic than factual. Part of this is due to the entertainment industry stereotyping a Realtor as someone who simply opens doors for home shoppers. The role of a Realtor is vital in the real estate transaction process. The process of buying and selling a home is a whole lot more than simply opening doors and looking at the wall color and floor styles. Investing in real estate and the decision about working with a Realtor is no different. For many investors, there is the looming question of carrying the real estate salesperson license or building a network of realtors to work with.
We are Licensed in Connecticut
For GLG Homes, we decided that it is best to cover all bases. We work with real estate agents across all of Connecticut for both buying and selling (yes, we use other agents to sell our properties). In our view, if an agent brings us a property and we plan to renovate it and resell it – they should have the opportunity to resell it. We (George specifically) are licensed in Connecticut to enable our company, which is brokered by eXp Realty, to buy or sell properties directly.
In-house Licensed Realtor versus a Network
Many investors who incorporate a licensed agent into their team do so primarily to affect the commission outcome on the sale of a property. Being the listing agent of their own property allows the investor group to avoid paying the sell-side of the commission. This reduces the tax implications on the sale since no commission is paid out to the investor. Another advantage of the license is the access to the MLS systems and data. While it is easy enough to get comparable sale data from public resource such as Realtor.com, having access to the State’s MLS board(s) provides the investor with a much more comprehensive view of the real estate data.
The same is accomplished with a network of Realtors. Connecticut is not a big market, but we (GLG Homes) cannot know every town or even county well enough without doing homework before we talk to a buyer or seller. This is the principal value of a network of real estate agents. We work closely with Realtors in various counties who know their markets. This way if we identify a property we have a partner we can turn to and know we can trust their input on the property valuation.
The Realtor Role for an Investor
Whether the person is in-house or part of a network, the role of the Realtor is far more than simply opening doors. As mentioned, that person is responsible for knowing the market. This means they are current on market prices, trends, gaps in inventory, shifts in buyer demands and so much more. Experienced agents have contacts. Good Realtors have contacts at town hall to answer questions about the property.
For an investor team, having close connections with Realtors is as essential as a real estate attorney / title company. In-house or not, having a qualified and experience Realtor is a necessity. And it is easy to spot the good ones. These are the agents who ask questions beyond “how much do you want to spend”. If you are talking to a real estate agent and that is their first question – run. They are only interested in whether or not you will create a commission worth their time with you. But that’s a topic for another day.
We are Always Seeking New Realtor Relationships
Whether the agent is a member of our in-house team or part of our network, we are always looking to build relationships with real estate agents who want to grow their real estate business. A good agent knows that to grow their business they need a mix of client types. Are you a licensed real estate agent seeking a network and learning more about investing? Please reach out. We are always looking to partner with talented and like-minded individuals.