Buyers and sellers are two people who have diametrically opposed interests. One wants to buy a property for as little money as possible, the other wants to sell their property for as much as possible. This can easily lead to conflict and confusion. A real estate agent can be instrumental to the buying and selling process. Here are a few reasons why I think you should hire a real estate agent:
For Sale by Owner Isn’t as Lucrative as You Think
Many people have considered “cutting out the middleman” by selling their home directly. This is because they are hoping to save a real estate agent’s commission which can be anywhere from 5-8% of the sale price of the property. If your property is estimated to sell for $500,000, then you could stand to spend $25,000 on your real estate agent, which to many seems a considerable number. However, properties for sale by owner generally sell for about 30% less than properties listed by real estate agents. That’s a considerably larger loss than the cost of hiring a real estate agent!
There’s A Lot of Paperwork
In the process of buying and selling a house, there are many documents you will have to peruse. A purchase agreement can easily be more than 10 pages these days, full of clauses you might not be familiar with such as contingencies. A real estate agent will have the experience to spot if there are any mistakes or omissions that could cost you as much as the commission you are trying to avoid!
Agents Know What to Look For
As a buyer, people tend to be very fixed on what they are looking for. They will have a set number of bedrooms in mind, they will know how much outdoor space they require, what kind of appliances they are looking for, etc. However, despite having a thorough list of what to look for, a real estate agent will help you see things that might not cross your mind. The house may appear perfect, but an agent will be able to instantly spot insect issues, leaks, or roofing problems. With an agent, you pay for the expertise and experience that you might not possess.
As a seller, you may have a dollar amount in your head regarding how much you want to sell your property for. But is this price reasonable? You may know how much other properties in your neighbourhood are being listed for, but you won’t know how much they actually sold for. A real estate agent can provide comparable sales to help you find a competitive price for your home based on your home’s location, size and quality of finishes compared to others that have sold in your neighbourhood.
Agents Are Trained to Negotiate
It is without doubt the buying and selling of a property will be fraught with emotion. A real estate agent is aligned enough to your needs but removed enough from the situation to be able to zealously advocate for what you want while also being fair. They will know which offers work well and which don’t.
At the end of the day, one of the smartest things you can do is hire someone who is smarter than you. Their knowledge and expertise will bring to the table skills which you do not possess. In turn, you can have your needs better served. If you’d like to learn more about the advantages of hiring an agent, please reach out to me here. Regardless which side of the negotiating table you are on, I would love to help show you the financial benefits to hiring an agent.