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How to Handle Pig-headed Real Estate Investors

By James Kobzeff

Republish: EasyPublish™ Published: 28May2009 Word count: 551 Viewed: 301 time(s) Get Free Content For Your Site

We've all been there. Anyone who has worked with real estate investment properties long enough has undoubtedly had to deal with a pig-headed real estate investor. That inflexible so-and-so who makes unreasonable demands as either the seller or buyer of rental property.

Pig-headed investors are easy to spot. They demand that we list their property for a price that far exceeds market value in the hope of making a huge and unwarranted profit. Or they have us present their offer to purchase a rental property far below market value in order perhaps to steal the property and make a once-in-the-lifetime deal.

Sound familiar, probably. If we work with real estate investment properties long enough, we simply can't avoid crossing paths with at least one obstinate investor during our tenure. It's the law of the jungle.

Okay, so how is a real estate agent who's simply trying to feed the kids and/or make an honest living supposed to react? It generally boils down to one of several.

1. You can cower to the investor - Yes, you can list the investor's rental property at the over-priced price and hope someone ill informed enough (or maybe in a tax exchange and desperate enough) will pay the price, or present your headstrong customer's low-ball offer and keep your fingers crossed. Bear in mind, though, that unless an all cash offer in involved you will have to await an appraisal that either makes or breaks the deal. Moreover, when you fail to produce (which does happen) the investor could lose patience and unfairly dump you (which also happens). Either way, at the end of the day you could walk away with nothing.

2. You can defy the investor - This is probably the road least traveled for a couple of reasons. Real estate agents often aren't knowledgeable enough about rental income property to stand toe-to-toe with unyielding investors, or just too greedy to rock the boat if it means losing a potential sale, which, of course, is understandable though, it does happen. There really are agents who won't waste their time marketing over-priced listings or writing unreasonable offers.

3. You can refer the investor to a colleague - This is not a bad alternative. If you're astute enough to recognize all the signs early on, you can spare yourself the time and frustration of having to deal with a hardnosed and uncompromising buyer or seller and bank on the efforts of a colleague. Yes, it means less of a commission, but it's smart to know when you're over your head and better to trust that someone more thick-skinned than you might actually close a transaction.

4. You can inform the investor with the facts - This is the high road, though it's much more than simply voicing your opinion. A strong willed investor is not about to cave-in to the opinion of any real estate agent. It's about presenting clear and accurate data, and almost certainly, the best chance you have to reason with an unreasonable investor. You will have to research and create comparable market and cash flow analysis presentations, but quality real estate investment software can help you do this easily. By far the most professional reaction to a pig-headed investor, this option, not surprisingly, is also the most profitable for you over the long run.

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