The 5 Reasons You Need an Investor-Focused Agent

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While we have always suggested having an investor-focused agent, recent news in the industry makes it an even better idea. 

July 1st marks a significant shift where buyers might start footing the bill for their agent’s commission. Traditionally, it’s been a perk—sellers cover the cost. But recent legal battles and changes may change all of that. 

So, why the fuss?

Transparency.

Advocates argue that the old system wasn’t crystal clear and may have led to inflated prices. With reforms in sight, buyers now face a new reality where clarity and agency agreements are the top priority. 

With these changes in mind, now, more than ever, is the time to find an investor-focused agent. 

How Did We Get Here?

In the realm of real estate, change is often slow-moving and marked by legal battles and industry-wide adjustments. Recently, a significant development has emerged from years of legal disputes involving the National Association of Realtors (NAR), impacting how real estate transactions are conducted across the United States.

So, how did we get to this point?

For many years, the structure of buyer’s agent compensation has been a contentious issue, drawing criticism from consumers and legal challenges alike. 

 

The core of the issue revolved around transparency—or the lack thereof—in how these commissions were handled. Buyers and sellers often felt left in the dark about who was paying whom and how much, leading to concerns about inflated pricing and conflicts of interest.

The culmination of these grievances resulted in a class-action lawsuit against NAR, initially seeking $1.8 billion in damages. While the final settlement amount is now set at $418 million, to be disbursed over the next four years, it represents a significant reckoning for the industry. This settlement isn’t just about financial compensation; it also mandates procedural changes within the real estate sector.

What to Expect from July 1st Onward

Starting July 1st, these changes will come into effect, ushering in a new era for real estate transactions. One of the most notable changes is the elimination of the practice where buyer’s agent commissions were listed on the Multiple Listing Service (MLS). Previously, agents could see what commission percentage they would receive for bringing a buyer to a property simply by checking the MLS listing. This practice, criticized for potentially steering clients towards higher commission properties, will now require separate negotiations outside of MLS visibility.

Additionally, buyer agency agreements will become mandatory in many states, including Indiana. These agreements, although not entirely new, will now be a prerequisite before agents can provide any services to prospective buyers. This includes showing properties and submitting offers, emphasizing transparency and accountability from the outset of client-agent relationships.

These adjustments aim to enhance transparency, mitigate conflicts of interest, and empower consumers in their real estate transactions. 

While some aspects of these changes may present initial challenges—such as additional negotiations and paperwork—the overarching goal is to foster a fairer and more informed real estate market.

The 5 Reasons you Need an Investor-Focused Agent

So, what does this all mean for investors eyeing the Indianapolis market? 

It means you need to choose a buyer’s agent wisely- especially  if you are out of state. After all- who else knows a city better than those who work and live there? 

Here are the top 5 reasons you need an investor-focused agent for Indianapolis investing:

1. Advocacy

Imagine having someone in your corner whose sole mission is to ensure you get the best deal possible. That’s the essence of advocacy with a buyer’s agent. Whether it’s negotiating on price, uncovering hidden costs, or steering you away from potential pitfalls, their commitment lies in safeguarding your interests throughout the entire process.

There is very rarely such thing as a “smooth” real estate transaction. But, with the right agent, a lot of transactions can seem smooth, because they are doing all the work behind the scenes for your best interest. 

2. Efficiency

Buying a property isn’t just about finding the right place; it’s about navigating a maze of paperwork, inspections, and negotiations. A buyer’s agent acts as your behind-the-scenes hustler, coordinating with lenders, managing title issues, and ensuring all the gears of the transaction keep turning smoothly. This leaves you with the freedom to focus on your life beyond real estate, knowing that the intricate details are being handled with precision.

3. Boots on The Ground

Especially valuable for out-of-state investors, having a local expert in your corner provides invaluable insights. Buyer’s agents aren’t just moving lockboxes—they’re immersed in the local market dynamics, understanding nuances that can impact your investment. From neighborhood trends to regulatory changes, their presence ensures that your investment remains well-informed and secure.

An investor-focused agent can show you the right neighborhoods with the right rents. They can tour the home for you, sending you videos and photos. They can let you know what updates, rehab, and rent-ready items need looked at. Essentially- they are your eyes if you are unable to be there in person. And, with their local market knowledge- they can provide critical insight you can’t find elsewhere. 

4. Local Expertise

Beyond geographical familiarity, buyer’s agents bring a profound understanding of local economics and real estate dynamics. They know more than just the streets—they understand which areas promise the best returns, the intricacies of tax structures, prevailing rent rates, and strategic insights that can significantly influence your investment decisions, and your returns. 

5. Local Trend Spotter

Successful real estate investment isn’t merely about the present—it’s about anticipating the future. Buyer’s agents possess a knack for spotting emerging trends and opportunities that could translate into substantial returns on investment. Whether it’s identifying up-and-coming neighborhoods or capitalizing on industry booms like Kokomo’s job surge, their ability to foresee market shifts transforms real estate transactions from mere purchases into strategic investments.

In Conclusion

So, there you have it—a crash course on why in many cases, an investor-focused real estate agent can be the MVPs of your investing game plan.

Having a savvy and knowledgable agent isn’t just a perk—it’s a strategic advantage. Whether it’s dodging bad deals or seizing untapped potential, they’re your ticket to real estate success.

Looking for an Investor-Focused Brokerage Team in Indianapolis?

About the Author

Brooke Robinson

Brooke is our Digital Marketing Specialist. She is responsible for the marketing of T&H Realty on all of our main media channels including social media, podcasts, and our website.

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