- Hire people based on their reputation and track record.
- Bewilling to pay a premium.
- Play up the prestige of your professionals.
- Hiring tips for key specialties.
Many small investors get into trouble because they try to do everything themselves, right down to their own legal and tax work. To be successful with your real estate project, you need to get the best people in the field to help you.
When it comes to specialty areas of real estate like law or design or contracting, you want to avoid someone who just occasionally dabbles in the real estate field, like your neighbor’s brother. You want a professional who makes a living in the real estate specialty you need. How do you find good real estate professionals? Start by keeping an eye out for examples of work you admire, such as a local landscape or building renovation, then find out who the designer or contractor was. Also, contact lawyers and contractors that you know have done work on projects like yours, and who will likely do good, quality work for you. It is especially important, for example, if you have a zoning problem, that you hire a local zoning lawyer who is well versed in zoning matters and has the political connections to get things done.
You always want to use full-time specialists in their field of endeavor, not part-timers. They won’t be up-to-date on the latest techniques. Their fees will probably be less than the best in the field, but they won’t have the knowledge you need. Every real estate parcel has problems of one kind or another that will require the expertise of a specialist. Keep in mind, too, that part-time people will only give you a part-time effort.
Another consideration is giving preference to local people—try not to bring in people from outside unless they are really outstanding. Locals will be better informed about the area and will have better connections with the contractors and other people that you will need. The best method of identifying quality professionals is to speak to another investor/renovator/builder who is doing what you want to do and get recommendations. Be aware however, they may not want to talk to or be honest with you if they feel you’re a competitor. If they are not helpful, the information you seek may be available from their lawyer, realtor, or broker who can probably get you the information you’re seeking. They will gladly cooperate if they think you’re a potential client.
Let the Realtor Be Your Guide
The experienced local real estate agent is your best source of information. You want a realtor who has an outstanding record dealing with the kind of property you are investing in and in the location you have interest in. Real estate agents also are great networkers with other key specialists in the real estate industry. If, for example, you see an apartment building with exquisite landscaping, make inquiries about the name of the realtor or broker who handled the latest sale of the property. They either know who did the landscaping, or they can get the information from their client.
The key is to elicit the realtor’s full cooperation by holding out the likelihood that you’ll use him in your real estate matters. You may or may not decide to use him in the long run, but you should at least initially seduce him by exhibiting your good intentions. Explain why you need the information, and he will often jump to get you everything that you need, especially if he thinks you are serious about buying a property. Moreover, depending on the size of the brokerage office, he will likely have a great deal of valuable information stored in his database. He can tell you who the owner of a beautiful new property is, how much he paid for the property, what it cost to build, and who the general contractor (GC) was, and if he doesn’t have this data, he can get it. He can call any former client and say, “I have a client that likes very much what you built. Who did you use as a GC?”
Then get the name of the GC or architect and say to him, “You did such and such a job and it really looks good, we would like to use you for our project. Can I see your portfolio?”
You need to make a connection with someone who has done an outstanding job on the same type of work you need done. The best contact to get you started is the local realtor in the area. Don’t limit yourself to just one. Go to two or three realtors and get as much information as you can. Ask a whole bunch of questions. Then, if the same name keeps popping up again and again for a given specialty, that’s probably the one to use.
Hiring a Real Estate Agent
1. Get an agent close to your property who is properly sized to service your needs.
2. Meet all the people who will be working on your account.
3. Check the local real estate board for any information or complaints.
4. Find out what their rates are and what services they will perform.
5. Get examples of the kind of reports they will furnish to you about your property.
6. Find out how inquiries as well as complaints are handled by the agent.
Questions You Should Ask before Hiring a Real Estate Agent
• What other owners do you presently represent?
• Are you the agent for other buildings comparable to mine?
• If so, how many, for how long, and where are they?
• What advertising will you do for my property?
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