myEmpirePROQUESTION – “Hi Ola, I’m fairly new investor and I’ve found a potential deal. It’s a fsbo and I want to wholesale it, I’ve done Zillow and trulia Comps. What incentive do I have to get an agent to run mls comps for me?”
In order to answer this question, it’s important that you know what it means to wholesale a real estate deal.
Wholesale real estate is the art and science of attracting deeply discounted properties, locking them under contract and selling the contract for a lucrative fee; usually $5,000 or more. My highest fee on record is $82,000 from one deal.
What is After Repair Value?
After repair value a.k.a ARV is the value of a real estate property (that usually needs repair) after it has been adjusted for its present condition as compared to the average sales price of properties within a one mile radius of the location of the subject property and last 6 months period of evaluation.
We probably should clarify what FSBO is. It’s an acronym that stands for “for sale by owner”.
These are properties that have been listed and publicize to the market by owners with the involvement of licensed agents.
So one of the ways to attract discounted properties for sale is by prospecting and/or marketing to house listed “for sale by owner.’
Zillow and Trulia and internet websites that list properties for sale.
They also provide algorithm tools that reveal what a property is worth in the present market.
As you can imagine, they collect the data of houses listed on the market, sold houses, listing and sales price.
So on those 2 platforms, you are able to analyze and come up with value opinion of a subject property from pulling comparable listings and sales a.k.a comps.
Licensed real estate agents has seemingly more sophisticated tools via the multiple listing systems (THE MLS) to pull comps and analyze to determine the value of the subject property.
So gurus have made newbie believed for years that they need a licensed agent to do this for them .
So back to the question:
“What incentive do I have to get an agent to run mls comps for me?”
The truth is that there are alternatives today due to the digital age that is growing very fast.
That means finding an agent to do this for you is of very little value especially when you consider this very valid question.
Incentives will ideally be something valuable you can offer an agent to perform this minimum wage activity.
Some may say you should offer to list the house with them once it’s ready after acquisition and rehab.
The agents that would pull proper comps for you typically don’t have the time. Those that do won’t know how to pull proper comps. But also, I could be wrong.
What if you could learn how to evaluate property by yourself in 5 minutes or less? That would be a game changer.
More so, you can then focus on the most important skill in the profession; marketing. That way, you can become a source of leads for the agent.
Leads (new business) are the best incentive for an agent to get you comps. If you are marketing enough, you will generate more leads than what will fit wholesaling as an exit strategy.
Many times, home owners will want retail price for their properties. That’s a great lead to pass to you agent/partner.
Watch this video to see what I mean…