Are you looking to buy or sell a house but don’t know if you need to hire a real estate agent? In this video, I’m going to give you the pros and cons of hiring a real estate agent—as well as 3 main areas to consider before you make your decision. By understanding what part a real estate agent plays in your transaction, you can be in the best position to make a choice that’s right for you.
Pros And Cons Of Hiring A Real Estate Agent
There are many reasons people choose to hire a realtor, and there are both pros and cons of choosing to work with one. Here, we’re going to consider 3 areas where an agent can play a huge role in the process.
#1: Real Estate Education
When deciding whether to hire an agent, the first topic to consider is real estate education. Do you understand the overall process of real estate and how it works? There are many intricacies when it comes to buying or selling real estate, and if you don’t know all of those intricacies you’ll need an agent to walk you through every step.
For example, there can be upwards of 25 pages of disclosures to sort through in the real estate transaction. If you don’t know how to respond to these disclosures—or figure out what they even mean—you’ll need a real estate agent or an attorney to help you. A real estate agent’s job is to be your advocate, walking you through the transaction, and ensuring you’re doing everything correctly. Of course, if you know what you’re doing or have completed real estate transactions before, you may not need a real estate agent.
#2: Facilitate The Transaction
The second factor to consider when deciding whether to hire a real estate agent or not is the facilitation of the transaction. If you know what happens first, second, third, and fourth, then by all means, do it yourself. If you don’t, hiring a real estate agent is essential to keep you on track.
For example, if you’re buying your house, finding a property you want to purchase is half the battle. Once you find your prospective new home, you’ve got to deal with your loan, appraisal, negotiations, inspections, contingencies, negotiations again, and then see it through to closing. Are you ready for that on your own?
On the other hand, if you’re selling your house, you’ve got to start from the very beginning. That means staging and cleaning your home, making a list of repairs, taking care of those repairs, preparing a marketing plan—including photography, videography, and marketing it on a variety of websites—and finally, finding a buyer and facilitating the transaction to closing. You’ll have to arrange the inspection, make sure the buyer is approved on the loan, get it to escrow, have the title, make sure the title is clear, and more. If you know how to facilitate your home sale from start to finish, you might not need to hire a real estate agent.
#3: The Expense
The third area you’ll need to consider when hiring a real estate agent is the expense. How much does it cost to hire a real estate agent? If you’re buying a home, hiring an agent comes at no cost to you, as the seller typically pays for the buyer’s agent. Since it’s free—and I’m not saying you have to hire me, although you should—it doesn’t hurt to have an agent looking out for you. An agent’s entire job is to make sure you are taken care of throughout the entire process. A good agent ensures that you don’t make a bad financial decision.
If you’re selling your home, however, then you will have to pay a commission to your agent. This can be anywhere from 5-6% on the sale of your house. Of course, this is a huge cost to consider. However, would it be worth it to you to have somebody that can handle the contract negotiation, marketing, showings, and ensure you get from point A to B throughout the entire process? On top of that, is this expense going to make you more money by selling you home faster and negotiating for a higher cost? A good real estate agent will yield an increased sales price in a shorter amount of time—at least I do.
Which Agent Should You Hire?
Now that we’ve considered the pros and cons of hiring a real estate agent, the question you should really ask yourself is who you should hire. It’s clear that, despite any cons, the benefits are well worth the help you’ll receive from your agent. If you have any questions, please feel free to reach out to me and I’ll be happy to help!