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How to Select the Right REALTOR in Decatur: Key Considerations

Buying successful investment real estate properties in Decatur, Arkansas requires choosing the right REALTOR®. Because of Decatur’s competitive market, who you choose can significantly impact the success and growth potential of your portfolio.

In the last decade, Many people have relocated to Decatur for the small town feel and affordability, although it’s growing quickly. According to Redfin data, the median listing price of a home in Decatur is $444,500. Although this represents a 2.8% decrease year-over-year, the average home value has increased by 2.7% just in the last year.

To get access to the best deals, you need to work with a reliable, experienced agent. However, your ideal real estate agent will be slightly different from those who serve traditional homebuyers. You need someone who understands investment strategies and can identify market opportunities that align with your goals.

Whether you’re looking to buy fix-and-flips, standard rental properties, or commercial investments in Decatur, here are the top points to consider when selecting your REALTOR®.

Are they licensed?

First and foremost, it’s essential for your REALTOR® to be licensed. The main license a REALTOR® holds is a general real estate license issued by the state. This allows them to legally buy, sell, and lease properties in Arkansas.

A real estate agent who specifically calls themselves a REALTOR® also belongs to the National Association of Realtors (NAR) and as a member, they are bound by the group’s ethics. This isn’t a license, but a membership.

Working with an unlicensed real estate agent is a bad idea. Someone practicing real estate without a license is not only breaking the law, but is more likely to be inexperienced and make devastating mistakes. You could end up dealing with the following damages:

  • Financial loss. An unlicensed agent may not know how to close deals properly, which can end up costing you a fortune.
  • Lost deals. Of course, you won’t be held liable for an unlicensed agent’s actions, but you can’t control how their consequences might impact your deals. If they’re caught in the middle of a deal, you may have to give it up.

Before signing any contract, always ask for your agent’s credentials and license, and look them up in the Arkansas real estate agent database. If they show up in the database, and you’re still not sure if they’re legitimate, search for their name online and try to find some photos to compare against the person you’re working with. This can be a good way to ensure you’re not dealing with someone stealing an agent’s identity.

Investment experience is a must

You need a real estate agent with a proven track record working with investors. Simply working with homebuyers isn’t enough. Your agent needs to understand investment-specific concepts, like ROI, cap rates, and rental market analysis. Investment experience is what will help them identify the opportunities that align with your investment goals.

Search for a REALTOR® with proven experience dealing with various investment strategies, like Buy, Renovate, Rent, Refinance, Repeat (BRRRR) and buy-and-hold. Ideally, they should have experience with analyzing deals, creating market analysis reports, and forecasting appreciation. They should also be able to evaluate properties for exit strategies.

Although experience is great, their track record should include successes and wins for their investor clients. Find out if they have any testimonials they can share so you can verify their ability to get results. Vague, neutral or unhappy clients are a bad sign.  

Do they have access to off-market deals?

The MLS can be a good source for investment opportunities, but it’s available to all agents, and that means you’re competing with every other investor.

Your ideal Decatur REALTOR® won’t need to rely on the MLS to find you good deals. They will have access to off-market properties and pocket listings. They’ll also have tried-and-true strategies for finding properties long before they hit the MLS. Typically, they’ll have well-established relationships with other investors as well as property managers, who will give them a heads up on potential deals. This is part of what makes your agent more of a partner than anything.

When selecting your real estate agent, ask how they find deals and how successful they are in getting investment properties below market value. If they rely entirely on the MLS, don’t have access to off-market properties, or don’t have a track record of securing properties below market value, keep looking.

Do they have a professional network?

A well-seasoned, successful REALTOR® will have a network of professionals they can call for various purposes. For example, they’ll know contractors who can come out and perform quick and fair evaluations and estimates, lenders who deal with both residential and commercial investment loans, and property managers in Decatur who know the local rental market.

Additionally, they’ll have connections to lawyers and tax professionals who know the ins and outs of property investment. When you find a potential REALTOR®, make sure they have experience helping investors in these important areas.

Do they have experience with market analysis?

A good agent should be able to create a detailed analysis of the various submarkets in Decatur, including new developments and other areas starting to experience growth. It’s crucial that your REALTOR® knows local zoning laws, especially if you’re investing in commercial property. They should also be familiar with development plans and state and local regulations that may impact your investments.

More specifically, you want a real estate agent who can carefully and accurately review the following factors that impact the market:

  • Property appreciation rate. Property values should be rising dependably each year to meet your long-term investment goals.
  • Population growth. A good market has a growing population. As the population grows, the need for residential housing increases, which is good for investing. When growth is stagnant, rental rates tend to decrease along with property values. As a population declines, tax income decreases, which compromises the condition of infrastructure, schools, and even public safety.
  • Property taxes. As of June 2024, the median property tax rate in Decatur is 0.78%, which is lower than both the Arkansas state (0.84) and national (0.99%) median rates. Still, some Decatur properties are grossly overvalued, and your agent needs to know how to spot this potential issue.
  • Price to rent ratio. Low rental rates tend to have a high price to rent ratio, which is exactly what you need for your property to pay itself off in a shorter time frame. The average rent in Decatur is 58% lower than the national average at just $657 per month.
  • Median gross rent. This helps gauge the stability of the rental market.
  • Median population age. Age helps identify the extent of a location’s labor pool, which represents the lease market. When the median age is equal to the workforce, it means there are dependable renters.
  • Unemployment rate. The unemployment rate is an economic signal that can tell you if renters potentially have unreliable cash flow. Higher unemployment rates are not ideal.
  • School ratings and reputations. Knowing the school district’s reputation is essential because parents want their kids to go to good schools. Locations with bad schools don’t make good long-term investments.

These are just some of the market details your REALTOR® will need experience with analyzing. Some of these factors can change without notice, so it’s crucial that you work with an agent who can analyze the market from scratch and not rely solely on someone else’s past research. Anyone can give you numbers by copying and pasting someone else’s research.

Can they negotiate?

Sometimes it’s not enough for your real estate agent to be licensed. They also need to be an expert negotiator to get you the best deals. This is another reason why you should choose a REALTOR® with investment experience. Buying investment property requires negotiating on a different level.

Do they use software?

It’s almost impossible to get anything done today without using software. A qualified agent will make use of all the best software to stay organized, keep track of appointments, and find new opportunities. It’s just impossible to do everything manually and still stay on top of the game.

Do they have experience with property management?

Knowledge is great, but experience is better. Make sure your REALTOR® knows property management inside and out. While you’ll probably use a different individual or company to actually manage your properties, a REALTOR® should know the fundamentals. Property management knowledge helps when evaluating potential rental properties in many ways, including knowing what potential tenants are looking for in Decatur.

Your REALTOR should be able to discern:

  • Local tenant needs
  • Market rates for rent
  • Vacancy rates
  • Challenges specific to Decatur

A knowledgeable REALTOR® can make the difference between acquiring a good investment and a bad investment simply based on details that have nothing to do with the condition or value of the property.

8 Red flags to avoid when choosing your agent

There are some common red flags that indicate lack of experience required to help you acquire more investment properties:

8 Red flags to avoid when choosing your agent

  1. Lack of investment knowledge. They should know basic concepts, like ROI, cap rates, and cash flow. If they don’t seem to understand these concepts in your conversations, they’re probably not a good choice for you.
  2. No experience with investment properties. If your pursuit is their first rodeo, you’ll want to work with a different agent.
  3. Poor communication. If they respond to your emails or calls too slowly, aren’t clear with their answers and explanations, miss appointments, or show up late, that’s a huge red flag.
  4. They only work with homebuyers. Traditional homebuyers have different needs than investors, so this type of agent won’t help you much.
  5. Lack of references. Successful real estate agents should have plenty of references to vouch for them, including clients with testimonials.
  6. They guarantee results. Overpromising unrealistic returns or outcomes without data to back it up is a red flag.
  7. They put on the pressure. If you’re being rushed into signing agreements or making offers, or they sound more like a salesman, they’re probably not the right agent.
  8. Unclear fees. You should know exactly how much you’ll need to pay them, even if it’s just a set percentage that changes based on other circumstances. There should be no hidden fees or renegotiations after a deal is underway.

These are common red flags that indicate a real estate agent isn’t a good fit for investors. Thankfully, it’s not hard to find a good REALTOR® in Decatur.

Acquire your next Decatur property with Estate.co

Whether you’re looking for residential or commercial investment property, it’s crucial to work with a licensed, experienced REALTOR® who truly understands your needs. When you work with our investment professionals at Estate.co, you’ll get the insights and opportunities that align with your investment strategy.

If you’re ready to optimize your investment portfolio in Decatur, contact us today and let’s talk!

Ethan Emerson
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