Choosing the Right Coach
Every Michael Jordan needs their Phil Jackson
Think of real estate like a sport or a game.
You’re the star player.
And your agent is the coach.
No matter how talented you are, or how much money you’re playing with—if your coach doesn’t know what they’re doing, you’re destined to fail.
Even the savviest sellers, buyers, and investors need the guidance of a competent broker.
Regardless of how experienced you may be, or how many deals you’ve closed over the years, real estate is ever-evolving.
The fundamentals remain the same, but the tactics and strategies that lead to success are constantly changing.
These are the 5 different high-stake scenarios that require championship-level play calling and poise.
And who you choose as your advisor, determines whether you win or lose.
When you’re buying and selling in the luxury price-point.
Whether you’re buying or selling, dynamics change when you’re swimming in the luxury pond.
Depending upon where you’re located, the threshold will vary. Here in the California Bay Area the luxury price-point starts in the upper-$2M range, and merges into “ultra-luxury” once you’re in $5M territory.
Every agent isn’t equipped to handle these types of transactions.
You need someone with experience.
Someone who speaks the lingo, knows the rules, and has the connections to close deals at a high level.
I say this with love—we’ve all been rookies at one point or another—but working with a beginner agent when you’re shopping or listing in the luxury market is like bringing a knife to a gun fight.
You’re ill-equipped.
When you’re making a move out-of-state.
Buying out-of-state requires a true local expert.
Someone that knows the neighborhood like the back of their hand, and can tell you exactly what it’s like to live, work, and play in the area that you’re considering purchasing.
This is often one of two types of agents: “the hometown housing specialist” or “relocation realtor”.
The hometown housing specialist has spent their entire life in the city.
From kindergarten to their Master’s degree, they did it all in their backyard.
The relocation realtor is the agent that’s been in your shoes.
They know what it’s like to walk into an entirely new world, and they can guide you every step of the way.
Working with an agent that doesn’t fit within either of these two archetypes, sets you up for unpleasant surprises and disappointment.
You’ll buy yourself a nightmare, when you thought you were getting your dream home.
When you’re carrying out a strategic transaction.
Family doctors and general practitioners are great in most cases.
They know a little bit about everything.
But when you have a rare illness or an acute ailment, it’s best that you see a physician who caters specifically to your unique medical needs.
The same logic applies to real estate.
Any licensed broker can handhold you through the process of buying or selling a piece of property.
But when you’re executing a complex real estate transaction that blends, tax avoidance, property law, and estate planning, you need a domain expert.
Whether it’s a 1031 exchange, investing in designated opportunity zones, or moving around assets for long-term wealth preservation, it’s wise to lean on an advisor whose primary business is helping clients in your situation.
These types of deals require a hammer, not a Swiss army knife.
You need the one tool that’s going to get the job done well, not an assortment of mediocre solutions.
When you’re pursuing an investment property.
There’s a laundry list of different ways that you can invest in real estate—house flipping, house hacking, long-term, short-term, and mid-term rentals.
These are just the tip of the ice berg.
Whatever path you intend to head down, it’s imperative that you partner with a real estate professional that’s traveled down that same road.
They’re the only ones that can tell you what twists, turns, road blocks, and dead ends lie ahead.
If your game plan is to buy a property that you can operate as an AirBNB, your agent should own an operate at least one themselves.
If your strategy is to rent fully furnished homes to traveling nurses, your realtor should have a few mid-term rentals under their belt.
Experiential advice will always trump theoretical guidance.
Much of real estate is learned hands-on, in the field—not in a textbook.
There’s certain questions you will have and scenarios you will find yourself in, that only a fellow investor can help you solve.
The ordinary realtor simply won’t have the answers.
Coaching from the sideline isn’t enough.
You need someone that’s an actual player in the game.
When you’re buying or selling a unique property.
There are over 10 different forms of real estate that make up the asset class as a whole.
No broker knows them all.
An agent that sells farm land, won’t have a firm grasp on what’s going on in the multifamily sector.
An agent that sells residential real estate, won’t know the first thing about bringing a retail listing to market.
All real estate is in the same family, but not every property type is related.
With this in mind, the advisor that you choose to work with, should align with the type of property you’re buying or selling.
If it’s a condo, go with a realtor that specializes in single-family.
If it’s an apartment building, go with a broker that focuses on multifamily investment sales.
If it’s a warehouse, go with a firm that operates in the industrial space.
So on and so forth.
Whichever asset class it is, you should find an advisor to match.
You wouldn’t go to a cardiologist for brain surgery.
So don’t work with a land broker when selling your townhouse.
A ton of emphasis is placed on market research, underwriting, and property selection, but rarely does anyone speak toward the importance of choosing the right broker.
All of those various factors are an integral part of sound real estate decision making, but nothing tops the role of a highly skilled and knowledgable advisor.
To harken back to the sports analogy that I opened with, it’s like focusing all of your efforts toward dribbling, free throws, and rebounds, but never placing any thought or intention behind who will coach you through high-intensity, game-time scenarios.
Your agent is the one that not only draws out the play on the chalk board, but ensures that it’s executed to a T.
They’re more than an intermediary, they’re the strategist.
So to all of the Michael Jordans out there, make sure you find your Phil Jackson.
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