Working with Estate Agents: A Property Investor’s Guide

Have you ever thought about how estate agents view property investors? It’s not always as straightforward as you might think. When you walk into an agency looking to buy a house, you’re just one of many potential buyers. But what if you could stand out and offer agents something they really want?

The key is to understand what drives estate agents’ businesses. They need properties to sell or rent out – that’s their bread and butter. Instead of asking for deals, why not offer to bring them new listings? By shifting your approach, you can build strong relationships with agents that benefit both of you. This way, you’re not just another buyer, but a valuable partner who brings in extra business.

Key Takeaways

Build relationships with agents by offering them what they need: new listings
Focus on creating win-win situations that benefit both you and the agent
Stand out by promising to bring properties back to the agent after renovating

Getting to Know Estate Agents’ Needs

Building Strong Ties with Agents

You can stand out from other buyers by focusing on what agents truly want. Instead of just asking for properties, try offering them business. For example, you might say, “I’m a property investor who often meets people selling houses. Sometimes they just need a good estate agent. Could I refer clients to you when they need help selling?” This approach shows you’re thinking about their needs, not just your own.

The Worth of Agents’ Property Listings

Properties for sale or rent are the lifeblood of an estate agency. Without these listings, they can’t make money from sales, rentals, or related services like mortgages. When you bring new listings to an agent, you’re giving them valuable stock for their shop window. This is far more appealing than simply asking to buy a house at a discount.

Agents’ Focus on Sales and Lettings

Estate agents are driven by the need to sell or rent properties. Their business value often depends on the number of managed rentals and sales instructions they have. By offering to bring them more business, you become a valuable partner. For instance, if you buy, refurbish, and then resell or rent properties through the same agent, you’re giving them multiple chances to earn fees from a single property. This approach can set you apart and help you build strong, mutually beneficial relationships with estate agents.

Smart Tactics for Property Investors

Engaging Estate Agents Effectively

When approaching estate agents, focus on how you can help them rather than what you want. Instead of asking for below-market properties, offer to bring them new business. Say something like, “I’m a property investor who often meets people looking to sell. Would you be interested if I referred these sellers to you?” This approach immediately grabs their attention and sets you apart.

Providing Value to Estate Agents

Think about what estate agents truly need: properties to sell or rent. By offering to bring them new listings, you’re giving them exactly what drives their business. Consider this strategy: buy run-down properties, fix them up, and then use the same agent to sell or rent them out. This way, you’re creating multiple transactions for them from a single property.

Advantages of Sending Business to Estate Agents

When you refer business to estate agents, you build strong relationships. This can lead to:

First choice on good deals
Better service and attention
Access to off-market properties
Helpful market insights

By focusing on what you can give rather than what you can get, you’ll stand out from other investors and create win-win situations.

Tips for Property Investment Negotiations

Avoiding Off-Putting Requests

When approaching estate agents, steer clear of making demands that might rub them the wrong way. For instance, asking for properties at 25% below market value can come across as cheeky or uninformed. Agents put a lot of effort into valuing properties accurately, considering location, amenities, and upgrades. They’re unlikely to undermine their own work or give away great deals to strangers.

Instead, focus on building relationships and offering value. You could say something like: “I’m a property investor who refurbishes run-down homes. I’d love to work with you, buying properties and then bringing them back to you for resale or letting. This could mean multiple fees for your agency. Would you be interested in this kind of partnership?”

Understanding Property Valuation

Estate agents consider many factors when valuing a property:

Location
Amenities
Upgrades or downgrades
Local market conditions

Their listed prices should reflect this research. If a property is a real bargain, agents are likely to offer it to their existing network of investors and contractors first.

To stand out, show that you understand the valuation process and respect the agent’s expertise. Ask thoughtful questions about recent sales in the area or trends they’ve noticed in the market.

Building Rapport With Agents

Here are some ways to create strong relationships with estate agents:

Offer them business, don’t just ask for favours
Bring them new listings from your direct-to-vendor marketing
Promise to use their services for future sales or lettings
Mention you’ll use their mortgage brokers for remortgages

Remember, agents need properties to sell or let. If you can provide these, you’ll quickly become a valued partner.

When meeting an agent, try this approach:

“Hi, I’m [Your Name]. I’m an investor who finds rundown properties, fixes them up, and either sells or lets them. I’m looking to work with agents who’d be interested in getting two sales fees from the same property. Would you like to explore how we could work together?”

This shows you understand their business and are offering something valuable, not just asking for deals.

Boosting Your Property Investment Gains

Giving Agents Ongoing Work

You can make a big impact by offering estate agents repeat business. Instead of just asking to buy properties, think about how you can give agents more work. For example, if you fix up houses, you could tell agents you’ll bring those properties back to them for resale or letting. This way, they get multiple chances to earn fees from the same property. Agents love this kind of ongoing relationship.

Benefits of Working Straight with Sellers

While agents handle most property sales, talking directly to sellers can be smart. You might say to an agent: “I often meet people selling homes who just need a good estate agent. Could I send these leads your way?” This approach shows you’re there to help, not just to take. Agents will likely be keen to work with you if you’re bringing them new listings.

Creating a Standout Offer

To get ahead in property investing, you need to be different. Don’t just ask for cheap houses – that can seem rude to agents who’ve worked hard on valuations. Instead, explain how you can add value. For instance:

Refurbish run-down properties
Sell or rent through the agent after improvements
Use their mortgage services for refinancing

By offering this package, you’re not just buying a house. You’re giving the agent a chance to earn money from the same property multiple times. This makes you stand out from other buyers.

Remember to build trust. Introduce yourself, explain what you do, and ask about working together. Show interest in a long-term relationship, not just a quick deal. This approach can help you find better opportunities and build strong ties with local agents.

Hurdles in Different Rental Approaches

Snags with Renting for Multi-Occupancy or Short-Term Stays

When you’re keen on renting properties to sublet as houses in multiple occupation (HMOs) or for short-term stays, you might hit a few bumps. Letting agents aren’t always chuffed about these plans. They’re used to standard tenancies and might give you funny looks if you suggest something different.

Agents typically ask who’ll live in the property. They want to know if it’s just you, you and your partner, or maybe you and a mate. They’re after the usual stuff – references for anyone over 18. Your idea of filling the place with loads of people or holiday-makers doesn’t fit their normal way of doing things.

To get agents on your side, you need to think about what they want. They’re after properties to sell or rent out – that’s how they make their dosh. If you can offer them more business, they’ll be more likely to work with you.

Here’s a tip: Don’t just ask for bargains. Agents know their stuff and price houses based on loads of factors. If you waltz in asking for places at 25% below market value, you’ll look a bit cheeky and clueless.

Instead, try this approach:

Introduce yourself as an investor
Explain how you do up rundown properties
Offer to bring the property back to them to sell or rent out
Mention using their mortgage brokers for remortgaging

This way, you’re not just buying a house – you’re giving them more business. If they can sell or rent the same house multiple times, that’s more money in their pocket. You’ll stand out from other buyers and might just get the deal you’re after.

Remember, it’s about building relationships. Be friendly, show you know your stuff, and think about how you can help the agent. That’s your best bet for getting them on board with your rental plans.

How do estate agents view property investors? It’s not always straightforward. You’re just one of many potential buyers. But what if you could stand out and offer agents something they really want?