To real estate agents, investor clients are like the Holy Grail.
Unlike other buyers and sellers, investors aren’t a one-and-done client you serve once every 10 years. Instead, investors can offer a steady stream of sales — season after season, year after year.
Not only does that mean more in commissions (and more consistent ones), but it also means you’ll spend less time and resources on marketing. And what agent wouldn’t like that?
Do you want to lock in more of those coveted investor clients? Just want to make sure you please the ones you already have? Then brush up on these must-have agent skills:
A fast-acting approach.
Let’s face it: housing inventory is pretty low. With so few affordable homes on the market, it can get pretty competitive out there, and good deals don’t last very long. If you’re going to help your investor clients snag those far-and-few between bargains, then you need to be fast. That means putting together the offer as quickly as possible, submitting the bid right away, and negotiating on the fly as needed. Ideally, you want to beat the competition to the table.
A dose of good, old-fashioned patience.
If you’re working with investors, then you need to be willing to wait it out. Not every deal is going to pan out, and you may have to wait a bit for a sale (and that commission) to come through. Of course, it can be frustrating to go on endless showings with no cash to show for it, but if the investor is a pretty active one, the wait should be well worth it in the long run. Just think: If you help them land a great deal now, they’ll want you in their corner for life (and that means countless more sales and even more commissions down the line).
Consistent responsiveness and reliability.
Investors aren’t just buying properties for fun. It’s how they make a living, and they take it seriously. As such, they need an agent they can trust to show up and deliver. That means being on time for all appointments, returning calls promptly, and being ready to meet and show houses with very little notice. Be the partner they can rely on to get the job done.
Solid negotiating chops.
Acting quick can help your investors lock in those deals, but sometimes, it takes more than just speed to land a sale. Often you’ll need to negotiate with sellers in order to make it work, and that’s where experience, market knowledge, and sales savvy can come in handy. Make sure to give your negotiating skills a tune-up if you’re planning on targeting investor clients (though it can help with traditional customers, too!) Try some of these tips if you want to up the ante in the negotiation department.
Unparalleled market knowledge.
Investors are pros at the property part of the equation. They know what they’re looking for, and they know how to evaluate a home’s condition and future worth. What they need help with? That’d be the market data and experience only you have access to. They need you to have a pulse on the local marketplace — property values, up-and-coming communities, new developments, etc. — as well as what local buyers are looking for. Make it a point to stay on top of local trends and market changes. The more knowledge you can provide, the more valuable you are to an investor (and any client, for that matter.)
No personal interest in investing.
Most investors don’t want to use an agent who invests in properties themselves. After all, if the property is such a good deal, why wouldn’t you just buy it yourself? Using an agent-investor is essentially working with the competition — and no smart investor wants to do that. If you’re planning on targeting investor clients, make sure you stay out of the investing space yourself. You (and your wallet) will be better off for it.
The Bottom Line When Targeting Investors
Generally, investors want full-time agents who have high availability and a quick trigger finger when it comes to deals. They don’t expect you to know much about investing (that’s their job). Instead, they need you to really understand and keep tabs on the market you’re operating in. That’s the unique value you represent — and what can help you stand out from other agents on the market.
Want to Add More Value?
Do you need other ways to stand out from the competition? Then refer your clients to solid vendors who can help them see success. Are you looking for a great mortgage lender who can care for clients as well as you do? Consider Embrace Home Loans. Contact a loan officer today to learn more about our products and how we can help.