How an Investor Can Form A Mutually Beneficial Relationship with a Real Estate Agent
Finding a realtor or realtors to form a mutually beneficial business relationship with can help you get access to lists on the Multiple Listing Service (MLS) that you may not otherwise be able to access. Access to these lists of expired, withdrawn, or canceled listings give you the perfect opportunity to reach out to these potentially motivated sellers.
If you’re lucky enough, maybe you have a friend or family member that is an agent. But if you do not know anyone that is in real estate, there are ways to form a business relationship with those who are. The first step is to remember first to build a rapport. You do not want to approach someone you don’t know and ask them to give you something, without first letting them get to know you and your business first. The key is, you want to give before you take.
Ultimately, what you need them to do is to send you expired, canceled and withdrawn listings from the MLS. But, like with any trade-off, you should expect to give them something in return, right? As it turns out, you do have benefits to offer them. Start with the fact that you can help them, not what they can do for you.
When you first reach out, you just need to explain to them that you are a new investor in the area and you will be marketing to canceled and expired MLS listings, and you are looking for an agent to work with that you can send referrals to. If you open with creating a relationship and offering them something, it will be easier for them to understand why it would be beneficial for them to help you.
Let them know that you are continuously marketing and reaching out to potential sellers, and you may not always have the best solution. In some cases, that seller may be in a place where they will need to work a realtor. In that situation, you can refer them to the realtor you have a partnership with
You can also explain that you are buying properties at a deep discount, and so you will not be infringing on their business.
You need to approach it like you are giving the right realtor an opportunity to get referrals. Someone that you know takes good care of their clients and you can feel confident sending people to. Now, not 100 percent of agents are going to be receptive to this type of arrangement. Some realtors are very busy, and they already have enough work to keep up with. Typically, newer agents would be open to an opportunity like this.
Just like sitting down with potential sellers, it helps to have a script. Sit down and write down what you will say when you first call an agent and get comfortable with it. I tell my students to plan on making at least 30 contacts with agents, and maybe sitting down and having lunch with 10. If you sit down with 10, usually two or three will be open to a partnership where they will send you expired listings each week if you send them referrals.