Education and news for smart DIY landlords!
For the past articles, I taught you all that you needed to know about running a real estate business alone. But I haven’t thought about the idea that “What if you don’t have the time to?” And although I’ve given tips saying that you should hire a real estate agent, I didn’t explain the advantages and disadvantages of doing so. To dive more into that topic, I present to you this list.
Whether you’re buying or selling a house, a real estate agent will take care of all the paperwork necessary. That means you don’t get to stand in long lines and wait for the property attorney to sign your papers.
When a buyer finds problems or damages in your property, you have to make repairs or upgrades to make the house sellable. With an agent, you won’t have to do it all yourself as they’ll quickly find a contractor to do it. The best part is, the agent can get you a good deal by offering a cheap price with high-quality work.
There’s no need for you to study the local housing market to set your home’s buying or selling price well. The agent is an expert on that. They’ll set appropriate price points that you’re sure to be happy with while attracting potential buyers and sellers alike.
Everybody hates to be given a lowball price yet everyone wants to offer it. By hiring a real estate agent, the other side will cut straight to the reasonable negotiating prices as they know they aren’t negotiating with an amateur. In the end, you could even maximize your profits.
Agents have a vast network of real estate-related professionals and clients. That includes exclusive listing connections. They can find another agent, buyer, or seller with an offer that is perfect for your listing and they can set up a deal that is sure to be advantageous for you.
An agent’s commission isn’t based on amount. You have to be ready to pay 3-6% of your house’s selling price to them if the house does get sold. For example, if the house you bought or sold is $380,000 and the agreed commission is 6%, then the agent gets $22,800.
You won’t be the only client the real estate agent will handle. There are many others like you as well. Don’t expect your calls or messages to be answered immediately all the time.
Sometimes a good deal can be ruined by an agent. It doesn’t matter if they’re your agent or not. As long as they’re part of the negotiating process, things will not go 100% your way. The same goes for the other party. So, expect a lot of conflict of interest.
Relying too much on your agent to do the paperwork strips you the unique experience of learning a huge part of the real estate experience. You might also find yourself cheated by a bad contract draft.
If you’re new in hiring an agent, be sure to check first their credentials thoroughly. Go for someone you like and trust with at least 3-5 years of experience. Check their reviews and recommendations. Avoid hiring an inexperienced agent that will maximize your loss instead of profits.
Hiring a real estate agent may be expensive but you’ll save a lot of time and effort while getting a good buying or selling deal. However, if you seek to gain the experiences of doing property paperwork and studying local housing market trends, devote a lot of time to your real estate business.
Still can’t decide whether to hire an agent or not? Do a little review on what it takes to do real estate by reading these blogs: