How To Find A Bad Agent To Buy Off

After look­ing for invest­ment prop­er­ties myself, in such a tough mar­ket, I real­ised I needed to start think­ing more cre­at­ively when it comes to get­ting a good prop­erty deal to ren­ov­ate.

My plan was;

  • To buy under mar­ket value
  • Some­thing I could add value to
  • A prop­erty with the prob­lem that can be eas­ily solved for little cost
  • A loc­a­tion that will have high cap­ital growth

I knew the way the mar­ket was going I def­in­itely had my work cut out for me. I believe I just had to work harder and smarter than every­one else. I’m a firm believer that a real estate agent can push the price of the prop­erty up by 10% but they can also make it slide the other way.

Agent due diligence

So I set out to research the prop­erty mar­ket and the agents at the same time. To my delight I found many agents that just weren’t up to scratch when it came to their advert­ising and nego­ti­ation skills. I also found what agents would be very hard to nego­ti­ate with. Still remain­ing friendly I made offers on some of the prop­er­ties but they made it just too com­pet­it­ive and the price went out of my budget. After observing many auc­tions and nego­ti­at­ing with some of the agents we truly knew who were the good the bad and the ugly.

Char­ac­ter­ist­ics of those bad agentsugly real estate agnet

  • Bad mar­ket­ing
  • Bad pho­tos
  • No paid advertising
  • Home cluttered and no staging
  • Bad nego­ti­ation skills
  • Less than 6 months in sales
  • Know the area bet­ter than the agent
  • Know your pri­cing bet­ter than the agent
  • Have a good soli­citor that you can con­tact easily
  • Not set up on the web ports cor­rectly or miss­ing on some of them
  • Bad man­ners on the phone
  • Doesn’t get back to you
  • Doesn’t remem­ber you after fol­low­ing rela­tion­ship build­ing steps

Property/market due diligence

Between my wife and I we inspec­ted up to 10 open homes a week­end. After track­ing sold prices over a couple of weeks we could clearly see that the mar­ket was eas­ily going up $10,000 a month. What really shocked us is when we atten­ded auc­tions. We found that buy­ers at auc­tions were get­ting very emo­tional at the time and bid­ding well over $80,000 more than nor­mal sales.

We had to change our strategy. After spend­ing a lot of time car­ry­ing out due dili­gence on many prop­er­ties, we found that we only needed to do due dili­gence on non-auction prop­er­ties. We also star­ted to get to know who were the good and bad agents, so we focused on the non-auction prop­er­ties that had bad agents. This gave us the best chance of get­ting a prop­erty at a price that made our pro­ject profitable.

This took a period of three months. Here’s a list of things that we looked for when I came to the location.

Loc­a­tion tips for price growth;funny side of selling a property

Now we were ready for the hunt

After this time we knew exactly what prop­er­ties would sell for and we could see what agents were under selling the prop­er­ties. We began stalk­ing mode and did our best to get on a bad agent’s “buyer hot list’. The trouble was the really bad agents didn’t even keep one of these Lists. One of these agents told me “just to go on realestate.com and then call me”. I felt sick in my stom­ach of how bad that agent was. It was kind of not a big sur­prise as I knew it was one of the cheapest agents in the area. I just felt sorry for the own­ers that sold with him.

How the deal went down

We found the per­fect combo;

  • An agent with less than six months exper­i­ence in the industry
  • The prop­erty was two bed­room but could be eas­ily con­ver­ted into three
  • The prop­erty was not well main­tained and needed work
  • No pro­fes­sional pho­to­graphy which pro­duced inquiryfunny side of selling of real estate close the gate
  • He did not nego­ti­ate well and gave all these cards away
  • He did not know the market
  • House was cluttered
  • He was pre­pared to sell prior to auction
  • The prop­erty was not mar­keted well
  • The prop­erty was struc­tur­ally sound
  • Fit­ted our loc­a­tion criteria

This was the per­fect storm but don’t get me wrong we worked hard for it as he was still get­ting offers at 11 o’clock at night as we were sign­ing a con­tract up in the office. By build­ing rap­port with the real estate agent it really helped us get the deal across the line.

The prop­erty was pur­chased for $505,000 and prop­er­ties around the area have sold for over $650,000 4 months later. If you are quick, you work hard and fol­low some of the prin­ciples out­lined here you can do well in this market.

About 

Jhai is an award win­ning Inter­net Mar­ket­ing Real Estate Agent for Eld­ers Toongab­bie and Kings Langley. After run­ning his own inter­net mar­ket­ing busi­ness he has now set his own sites for the real estate industry. He observed that 90% of real estate agents did not know how to mar­ket them­selves online. Jhai is now fixed on one goal. To teach real estate agents that they can mar­ket online so much bet­ter than they cur­rently are.

Since then he has been con­sist­ently quoted in the Sydney Morn­ing Her­ald and Real Estate Busi­ness online. He is a reg­u­lar guest blog­ger on TheHomePage.com.au, shar­ing his expert­ise of mar­ket­ing aspects for the Real Estate Industry. His biggest pas­sions are his wife, mar­tial arts, dogs and most of all property.

seven hills real estate agent NSW
Cnr Federal Road Prospect Highway Seven Hills NSW 2147 Australia