Dealing With A Real Estate Broker Who Can Make You A Pro

Teamwork plays a crucial part in building a real estate business. So, you should not take your relationship with the broker for granted.  Usually, there are three faulty approaches that get in the way of a healthy relationship with your real estate broker:

1)      I am the buyer, so the broker should be lucky to have me.

2)      The broker doesn’t understand what I want.

3)      The broker knows I’m new to this business, and assumes I have no plan.

Let’s understand these scenarios a little better and you will definitely see where the common thread lies.

The trouble starts with the attitude “Iam the buyer and I am always right”. You think the broker should be thankful to have you? Well, he’s also a busy guy who is investing his time and skills to close a deal so that he gets paid. It’s your job to properly explain what exactly are you looking for, and then let the broker show what he has to offer. Sure, the broker will be happy to have you IF there’s a match between what he has to offer, and what you’re looking for. Truth is: you both need each other!

Now, in the second scenario where you feel that the broker doesn’t know what you’re looking for, the problem can sometimes be that you are not communicating your needs properly. Although in some cases the broker may not have specialized in your product or may be new in dealing directly with investors, most of the time the problem with the buyer is that he isn’t sure of what exactly he needs, so he fails to lead the broker in the right direction. If your broker isn’t sure of what you are looking for, he may not be able to present you as a strong buyer to the seller. Your common objective is to close the deal, so you should take the lead from the first meeting and explain your business model to the broker. You should even discuss how you analyze deals, so that a clear message is communicated that you do your own due diligence. If you do this, the broker will do a much better job of lining up the right properties for you, or telling you that he has none that match.

The third scenario should not consititute a hurdle! Why should anybody be uncomfortable about being new in the business? Everyone has to start somewhere, so don’t make it awkward for yourself. What matters is how effectively you present your views and how well the broker receives them. If you are struggling withyour broker,it may be because you realling don’t have a basic business model to start with!You cannot expect someone to understand when you haven’t worked out the bits and pieces. So, when you are sharing your business model, start off with key highlights. You should anticipate the quick questions that the broker will have, and try to answer them before anyone asks. You should have the economic sense of the market and know if it is a stable one. You should also be aware of the neighborhoods in the area so that you can help the broker differentiate and decide what he should look for. Then, the most important thing is to tell the broker how you are going to arrange the finances.

 After you have explainedyour way of doing business and your criteria, THEN ask the broker how he thinks things will work out. Every broker cannot offer you a good deal, so make sure you are getting what you actually wanted and proceed only if you feel comfortable.

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