Selling or buying a condo, multi-family home, single-family home, or apartment can be a very intimidating process, especially for a beginning real estate investor. Therefore, investors should consider working with a real estate agent. A qualified and experienced real estate agent can make the sale or purchase of investment property less stressful and much easier.
So it seems that working with a real estate agent is in your best interest. But what if you end up with a bad real estate agent? Someone who, instead of providing the above benefits, makes the entire real estate investment experience a nightmare. The best way to avoid this is to look out for a few warning signs when hiring an agent.
The warning signs of a bad real estate agent are pretty easy to spot, so you should be able to avoid locking yourself into a contract with someone who won’t do the job or who won’t work in your best interests. All you need is a thorough interview and some background research before signing. So how do you know if a real estate agent is bad? Here are some of the telltale signs of a bad real estate agent:
Signs of a Bad Real Estate Agent
- Poor Communication Skills
A good buying agent’s job is to keep you informed of new listings, especially in a hot market where listings disappear quickly. Lack of communication is probably the number one red flag to watch out for. A bad real estate agent will be absent when you need it most, which can lead to unnecessary negotiation troubles and lost opportunities.
A good real estate agent will get back to you within 24-48 hours, and a great agent has backup staff to answer your questions immediately when the agent is unavailable. A bad agent does not communicate in your preferred method, whether by text or email, does not get back to you in a timely manner, and communicates in an informal, unprofessional manner, which leads to errors and misunderstandings.
- Stretched Too Thin
The average real estate agent closes 12 deals a year, which is roughly one a month. An agent who is closing significantly more deals may just be tedious, but it’s also a sign that someone is taking on too many clients to make money and isn’t putting the clients’ needs first. Working with this agent, you may find yourself at the bottom of the priority list and not getting the attention you deserve, or you may find that the paperwork is done in a hurry and wrong. A busy schedule doesn’t necessarily make a bad real estate agent, so it’s more of an orange flag than a red one, but it’s still a flag.
- Lack Of Experience
In general, your real estate agent should have at least two years of experience, as that is the time it takes to become familiar with property prices, the market mix and trends, and to master the paperwork. However, everyone has to start somewhere. So when you click on an agent, your intuition might suggest that you prioritize compatibility over experience as long as the agent has at least two excellent references to show you. .
Beware of part-time real estate agents, however, as in an emergency, all of that agent’s other duties may take precedence over your needs. In addition to inexperience, part-time workers often, but not always, lack support staff and networks. So if you find someone who seems to be on the same page as you, be sure to ask.
- Too Pushy (or Not Pushy Enough)
Real estate is a competitive business and you want an agent who will actively represent your interests, or else you risk finding yourself short-sighted in every negotiation. What you don’t want, however, is an agent actively pursuing an agenda related to your priorities. In the end, you may be persuaded to buy a home that you cannot afford or does not meet your needs. An exaggerating agent is usually not a good listener – and you’ll notice this in interview .
On the other hand, an agent who isn’t self-aggrandizing enough will appear lethargic and disorganized in the process. Your interview may have a lower-than-average conclusion rate. He’s someone who may not show up on time for appointments, and you might find yourself waiting at openings, private gigs, and book signings.
- Lacks Knowledge of Technology
Much of the real estate business happens online, and new tools are constantly being developed to make shopping easier and more informative. You can get an idea of how tech-savvy a real estate agent is by looking at their web presence. A good agency has a full website with testimonials and detailed profiles and is active on social media, which is an important networking tool. However, many people have technical difficulties, so if you come across an agent that relies heavily on s, phones, and printers and has a poorly performing website or no website at all, you may want to give up. miss the best opportunity to work with that person. .
- Ethically Challenged
Real estate agents are bound by a code of ethics, but some agents ignore ethics in favor of a quick sale. An unethical agent may give you misleading information about a property, fail to complete required paperwork, or conduct electronic transactions on your behalf without your knowledge. If you are already working with such an agent, you can file a complaint with your local REALTOR® association and this may be grounds for dismissal of the advance. Continuing to work with an unethical real estate agent can potentially put you in legal jeopardy, so it’s important to act quickly.
- Lack of confidence
The best real estate agents exude a high level of trust. A bad real estate agent lacks self-confidence and will therefore not be able to represent you effectively. As a result, you will likely lose out at the trading table.
- Lack of leadership
The role of a real estate agent is to guide you through the real estate investment process. As they are experts, they should offer advice based on their experience and research. If your agent isn’t willing to take charge of the process, you may want to find someone else.
- Poor listening skills
Is the dealer too interested to hear what you have to say? This is one of the signs of a bad real estate agent. The best real estate agents will ask questions like:
- What are you looking for in an apartment building?
- What is your timeframe for selling or buying?
- What is your preferred communication channel?
- What do you expect from me?
- Exhibits Unprofessional Behavior
You want to make a good impression at presentations, so you should dress appropriately and be on time, and you should expect the same from your agent. While everyone has days off, an agent who routinely shows up late in sweatpants is just counterproductive and points to potential problems that might surface later (like a lack of attention to detail when it comes to all the paperwork).
You can usually see the potential for such behavior when you interview the agent. Is the office clean and tidy, or is it cluttered with papers and disorganized? Does the agent treat you with respect or with undue ease?Is the communication clear and timely? If not, watch out for the red flag and find another agent.
- No Professional Network
You will need the advice of a number of professionals during the home buying process, including someone to inspect the home, someone to prepare the title, and someone to arrange a loan. The best real estate agent has a strong network of trusted professionals, but an underdog may end up having to call everyone at the last minute. This can cause delays in a busy market. Having a strong network gives you a priority scheduling advantage that you don’t necessarily have when you’re not a regular
It’s important to ask an agent about their network when interview and ask him for his name and contact details in order to establish direct links. If the agent is unable to provide this information, it is a red sign that the agent is not well established in the community.
- Doesn’t Take a Leadership Role
Beware of a real estate agent willing to accommodate your every wish, no matter how outrageous. A good agent has the experience to guide you in making sound decisions that help you make a successful offer and close the deal – and isn’t afraid to tell you what you don’t want or don’t want to hear. On the other hand, a bad real estate agent may allow you to make low offers or ask for expensive repairs that the seller may interpret as a lack of goodwill and may prevent them from doing business with you.
Your real estate agent is supposed to act as a messenger between you and the seller’s agent, but a bad agent will make the most of that role and not take on an advisory role. This is what you should cover in the interview, asking questions like “What’s a fair price for what I’m looking for in this field?”and “How long do you think it will take to find it?” “Be careful with overly positive feedback, because if what the agent says sounds too good to be true, it probably is.
- Dishonest or unethical
A bad real estate agent is dishonest or unethical. If an agent asks you to make false claims in an ad or to lie about disclosures, walk away and don’t look back. Dealing with a bad real estate agent who is dishonest can cost you dearly.
So, What Can You Do If You’ve Hired a Bad Realtor?
If you realize you’ve hired a bad real estate agent, make sure you’re not satisfied. Sometimes the agent will be kind enough to release you from the agreement you signed. In most cases, however, the breach of contract comes with conditions. For example, you may be asked to reimburse marketing and advertising costs. In general, the termination process will vary from case to case. But it might be worth it if you’re really unhappy with the
service you’re getting. Remember that there are many excellent real estate agents that go out of their way to help new and experienced real estate investors. So don’t let a bad experience stop you from working with a real estate agent.
Wondering to find the best real estate agent when buying an apartment? You can attend opening sessions to see how they interact with others and their customers. You should also ask friends and family for recommendations and check out agent reviews on various real estate websites.