Is your agent competing with you?

Let's face it. Realtors are only human. No, really. In a market that is moving as fast as ours bargain priced opportunities do not remain on the market long. When opportunity knocks are you among the first to know? Or is your real estate agent also an investor?

If you are buying real estate as an investor you are constantly on the look out for opportunities to buy low and sell high. You know that a little paint, carpet and vinyl can turn an ugly duckling into a marketable property in short order. Your agent knows this too and while many do not have the fortitude to lay it all on the line and take a risk on an investment property there are many others who will jump at the chance.

In the last rapidly appreciating market of 2004 through 2007 many agents bought up properties and sold them quickly at a profit. Like others, many of those agents lost a lot of money when the market crashed. Your agent likely has seen these rise and fall markets and because they are immersed in listings and data daily, will recognize opportunity as quickly as you. They will likely have an advantage however because as they seek opportunities for you and other clients, some might be compelled to step forward with an offer as soon as the property hits the Multiple Listing Service rather than showing you what they recognize as a bargain.

When selecting an agent to work with it only seems prudent that a part of your interview would include some discussion about their own investment strategies. You might inquire about their personal experiences during the last rise and fall of the market which by all accounts was the most severe of any in recent memory. If they share with you that they made or lost a lot of money in personal real estate investments you may want to query further to determine their current outlook on personal investing.

There is no law against real estate agents also investing in real estate. The law does however, require agents to disclose if they are buying or selling as an interested party. If the agent has purchased, renovated and is now selling a piece of real estate they must disclose that fact. If an agent is buying a piece of real estate for themselves or a relative they must also disclose that. Not only does the law require it, but when your agent is a Realtor, they are bound by the Code of Ethics under Article 4; "Realtors shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owner's agent or broker. In selling property they own, or in which they have any interest, Realtors shall reveal their ownership or interest in writing to the purchaser or the purchaser's representative."

Note that this must be "in writing." So much for disclosure in a transaction. If you both discover an opportunity at the same time the Code addresses that in Article 5: "Realtors shall not undertake to provide professional services concerning a property or its value where they have a present or contemplated interest unless such interest is specifically disclosed to all affected parties."

A contemplated interest may not exist until the Realtor shows you the property. If they are contemplating that property as an investment they have to disclose it at the time they show it to you or when they are in a meeting to discuss listing your property. Nothing prohibits an agent from competing with you but you. Your discovery of that discipline prior to agreeing to have them represent you is important. It is your own due diligence that will make certain your agent is an ally and not a competitor.

Trust an expert ... call a Realtor. Call your Realtor or visit www.cdarealtors.com to search properties on the Multiple Listing Service or to find a Realtor member who will represent your best interests.

Kim Cooper is a real estate Broker and the spokesman for the Coeur d'Alene Association of Realtors. Kim and the Association invite your feedback and input for this column. You may contact them by writing to the Coeur d'Alene Association of Realtors, 409 W. Neider, Coeur d'Alene, ID 83815 or by calling 208-667-0664