When selling a property, one fundamental dilemma you are faced with is whether to hire a real estate agent or sell on your own. Real estate agents are industry professionals familiar with the process of buying and selling a house. Their knowledge and expertise make them powerful allies for homeowners, especially if this is your first time exploring homes for sale.
To answer this question, consider the merits and demerits of doing it yourself or engaging a professional. So, why should you hire a real estate agent?
Here are ten different real estate agent pros and cons:
Pro: A real estate agent has an extensive network of potential buyers
There are lots of real estate agent pros and cons, but when you hire a real estate agent to sell your property, you are tapping the potential of an extensive network of potential buyers.
The agent has sold other properties and has contacts who may be interested in your property. Besides, the agent is already established and has inbound inquiries. Since they have a ready client base, it’s just a matter of time before your property goes.
Pro: A real estate agent has existing industry information & tools
A real estate agent has access to the necessary tools, information and expertise. Critical information such as anticipated development in the area affects the value of a property.
Pro: A real estate is better prepared to handle legal eventualities
Sine property transactions are worth vast amounts of money, entrusting the procedure to a real estate agent means one can rest assured of the backing of an expert in the industry.
On the contrary, handling the transaction alone means you are more exposed to the effects of any disputes that may arise. Besides, a seasoned real estate agent is likely to identify and avoid these legal challenges.
They have been in the industry for a while and know what to expect. Due to their exposure, they expertly tailor their documents and procedures to cushion you against potential pitfalls.
Pro: A real estate agent weeds out less serious buyers
While it’s essential to assess property and vet potential buyers, it can be tedious to go through this process. You could end up with a buyer who isn’t the right match for the property.
A real estate agent wisely vets and advises both the seller and the potential buyer of the appropriateness of a property. They provide advice on the best course of action to take before the process goes too far.
Pro: A real estate agent helps you determine the market value
As basic as it sounds, setting the right price for your property requires careful consideration. A real estate agent is best placed to gauge the current market value of your property.
When you understate the amount, you sell yourself short. On the other hand, overstating the cost of a property means it’s unlikely to attract a willing buyer any time soon. Who is best placed to help you out on this? Definitely a real agent.
Pro: A real estate agent gives you convenience and peace of mind
When you hire a real estate agent to sell your property, you cut out the back-and-forth communication and movement with prospective clients. If you want peace of mind, let the agent handle all the tedious in-between work such as negotiating the deal and helping with the paperwork.
The downsides of engaging a real estate agent include:
Con: Paying the agent fees
When you hire a real estate agent, you entrust a professional to handle the sale. This means the transaction overheads are on you.
You will have to meet due diligence costs to ascertain the authenticity of the property and vet the buyer. This is a necessary step, but it means the agent will have to charge a fee for the service.
Con: Legal and administrative work is involved
Selling a property through an agent means a lot of work is involved. You essentially become part of the process. When you don’t understand the impact, delays and costs involved, you end up with the short end of the stick.
Where the agent doesn’t provide full disclosure so you can decide whether to transact with them or not, you may end up with a deal you didn’t want.
Con: A longer decision process
When a real estate agent is involved, the decision-making process involves two parties. Compare this to a situation where only one person makes the ultimate decision, and hence shortens the process.
This, coupled with the fact that an agent will have to do their research and advise you accordingly, inevitably translates into a longer, slower process.
Con: Rogue real estate agents
If you want to buy a property in a hurry, you may not have enough time to do due diligence when engaging an agent. This puts you at risk of falling into the hands of a rogue agent. You may also land an agent who doesn’t care about what’s best for you. You might end up with a deal that’s skewed in the seller’s favour as the agent tries to bump his commission upwards.
While it’s optional to hire a real estate agent or sell on your own, take care not to end up in a legal dispute. Ignoring an expert’s opinion could be costly in the long run. A real estate agent understands his or her trade. Hiring one assures you of professional service and is great value for your money.
