Beyond the Buyer's Rep: Why Expertise Matters in Renovation Estimates - Article Banner

Who is helping you buy your investment properties in Dayton?

Maybe you’re doing it all on your own. Or, maybe you’re working with a buyer’s representative. At ManCo Property Services, we work with buyer’s reps a lot. They bring us business, and we effectively help their clients identify investment properties, buy investment properties, and then manage them. 

Are these essential partnerships, or are they really acting as an unnecessary middle man? 

Really, it depends. We have talked about buyer’s reps before, and in some cases, we find them to be invaluable. However, they’re often Realtors who are in a hurry to push their client through the process of buying a property. They’re not thinking about the long term like we are. 

So, let’s look beyond the buyer’s rep and talk to you about why expertise is so important, especially when it comes to renovation estimates on a property you might buy. You’ll find that a Dayton property manager can offer information that’s more accurate. This is what we do at ManCo, and we’re proud of the comprehensive services we can offer to our clients, from initial investment to leasing and management, to sale. 

We also have a lot of experience in renovations, construction projects, and rehabs. We know when you’re being told something that isn’t exactly accurate. 

How an Accredited Buyer’s Representative (ABR) Works 

An Accredited Buyer’s Representative (ABR®) is a designation that real estate agents can earn. It identifies them as buyer’s agents who will work directly with clients who are in the market to buy a property. They help the buyer look for the right property, negotiate the purchase price and terms, and close the deal, whether these are buyers who plan to live in the home themselves or rent it out. 

By working with an Accredited Buyer’s Representative, investors and buyers have the benefit of added expertise. They’ve had specific education, and the nuances of a buyer approaching the market are respected. 

When agents earn this designation, they’re provided with specialized information, specific programs, and regular updates that keep them knowledgeable on the issues and trends facing home buyers.

So, you can see: there’s a good reason to work with one if you’re buying a home for yourself or investing in a property you plan to rent out. 

 

What’s Our Problem with Buyer’s Reps?

We don’t have a problem with them. What we want investors to understand is that expertise is often going to be far more important than a designation. 

Sometimes, our experience with buyer’s reps goes something like this: the buyer’s rep will go into a property that an investor is thinking about buying, and will tell that investor that renovations should cost around $5,000. In reality, renovations might cost $25,000, and at that point the investor is wondering what went wrong and why the budgeted amount was so off. 

It’s because real estate agents – even those designated as a buyer’s rep – have a specific set of skills and services to provide. They’ll help you buy a really great house. But when it comes to accessing data and connecting you to contractors and vendors, and providing accurate information about renovations, you might want to turn to a different set of professionals. 

 

Selling Homes vs. Investing in Homes 

We are constantly impressed by the Realtors we partner with. They’re excellent at what they do. 

The last thing a good real estate agent wants to do is take on more liability. Smart agents will understand where their expertise really lands. 

Construction is different. Renovations require project management skills and property management experience. 

If you’re an investor and you’re looking to find either your first property to buy or the next property that’s going to contribute to your growing real estate portfolio, you want to know you’re working with local experts who can connect you to reliable resources. You want an accurate understanding of what you’ll have to spend – not only on the purchase of an investment property, but also on its renovations.

Realtors want you to buy a home. Property managers, like the team at ManCo, want you to invest in a property that’s going to make you money.

 

Renovation Estimates and the Expertise You Need

Accurate renovation estimates are important when you’re investing in a property that’s going to need some work. They’re also crucial for maintaining your rental property’s value and appeal. Accurate estimates ensure that you budget wisely, avoid overspending, and achieve a higher return on investment (ROI). 

Without the right expertise, the process of obtaining these estimates can be complex. Here’s what you need to do, and what most real estate agents, even ABRs do not always understand:

  • Understanding Market Rates. The cost of materials and labor can vary significantly across different markets. Without a solid understanding of current market rates, you risk either overestimating or underestimating the costs involved.
  • Identifying Quality Contractors. Finding reliable contractors who can deliver quality work on time and within budget is another challenge. Without a network of trusted professionals, you may face delays, subpar work, or unexpected costs.
  • Assessing Scope of Work. Properly assessing the scope of work required for a renovation project requires experience and knowledge. Misjudging the extent of renovations needed can lead to incomplete projects or unnecessary expenses.

Property management experts have a deep understanding of the Dayton real estate market. We stay updated on the latest trends, material costs, and labor rates. This knowledge allows us to provide accurate and competitive renovation estimates in-house.

We also have established relationships with a network of reputable contractors. This network ensures that you have access to professionals who deliver quality work, leading to more accurate estimates and successful renovation projects. 

Contractor ConnectionsFrom market insights to contractor connections, property managers bring a wealth of experience that can ultimately enhance your property’s value and profitability. We respect the work of Accredited Buyer’s Representatives. We also know that we can often do a better job of getting you the accurate information you need for your rental property, and we invite you to come right to the source.

Contact us at ManCo Property Services.