Whether you are thinking of selling or buying a home, you might be tempted to do it on your own, without the help of a real estate agent. After all, not hiring an agent will save you money, right? Before you go the DIY route, you may want to consider some of the benefits of working with a professional realtor, including a faster sale, a better offer, and some valuable advice during a complicated process.
Reasons to hire a real estate agent if you’re selling your home.
1. More Money
Sure, you’ll save the agent commission if you list your home For Sale By Owner (FSBO), but the truth is you’ll probably still come out ahead working with an agent. Keep in mind, if the buyer has an agent, you may be asked to pay the buyer’s agent’s commission.
In addition, research shows that FSBO sellers are getting less for their homes: The typical FSBO home sold for $310,000 in 2023, compared to $405,000 for agent-assisted home sales. According to the National Association of Realtors, homes sold by agents statistically bring in an average of $95,000, even after accounting for commission.
2. An Unbiased Opinion
You probably have a strong attachment to your home, which makes it difficult to recognize potential issues and buyer turnoffs. In fact, most people tend to overestimate the value of their home. Agents can provide an unbiased evaluation of your home and recommend the best areas to invest money in improvements or upgrades. They can identify which assets are your home’s best selling points and determine the optimal listing price.
3. A Faster Sale
Because agents have experience and proven strategies for selling homes, properties tend to move quicker than FSBO homes. It’s an agent’s job to understand the current housing market, be acquainted with the area, and know what buyers in your area want. They can provide you with a comparative market analysis of similar homes that have recently sold nearby. Armed with this information, a qualified agent can help you set the right listing price, prioritize updates and repairs, and provide effective marketing to prospective buyers. This can be especially important if you need to sell your home quickly.
An agent can also vet buyers to save you time. Most agents will qualify buyers before accepting an offer or even showing your home. They will determine if a buyer is pre-approved for a home loan, what type of loan they are qualified for, whether the offer is contingent upon the sale of the buyer’s current home, and how much of a down payment they can afford.
4. Less Stress
Selling a home is a complex process that involves a lot of tasks, paperwork, and timelines. It requires expertise and experience. An agent acts as the “project manager,” working with you at every stage of the sale and making sure all aspects are done correctly and on time. For instance, a real estate agent can help you show your home to buyers, negotiate and handle offers (including contingencies), prepare contracts, review seller disclosures, review loan paperwork, arrange title searches, oversee attorney reviews, do walk throughs, manage the closing, and more. If you think that’s a lot to handle on your own, it is! There are roughly 25 documents involved in a real estate transaction, which include industry jargon and legalese. Having an agent manage and explain these documents, as well as answer any questions you may have, can remove much of the stress sellers (and buyers) experience.
5. Expert Advice
As we touched on earlier, an agent knows how to market your home effectively, using the Multiple Listing Service (MLS) database, which is not available to FSBO sellers, as well as other advertising platforms. They also have access to a network of buyers and buyers’ agents. And when it comes to writing an attention-getting real estate listing, they know how to optimize keywords and incorporate appealing details.
Real estate agents can also offer valuable advice on how to stage your home to make it appeal to more potential buyers both online and in-person. Finally, if you’re planning on doing some home improvements to help with the sale, you can rely on the expert advice of an agent on which projects will deliver the best return-on-investment. Why waste money on expensive projects that won’t make or break a sale, when you can make more meaningful, less costly changes to attract buyers?
Reasons to hire a real estate agent if you’re buying a home.
1. More Choices
Real estate agents not only have access to more listings, but they also have a list of sellers for off-market sales, also known as exclusives. Some sellers prefer a discreet (off-market) sale due to divorce, foreclosure, confidentiality, the need for repairs, and other personal reasons. When you’re house hunting, you want access to the full range of opportunities. By using the MLS, an agent can provide more active listings that meet your criteria.
2. Red Flag Warnings
Nobody has looked at more houses than an experienced real estate agent! They can spot potential red flags when viewing a home that you might not notice on your own, including structural issues, roofing problems, plumbing leaks, mold, structural concerns, and more. Of course, these issues would probably be noticed during a home inspection but finding them early can save you a lot of time and heartache. An agent can also let you know if a property is priced above market value.
3. Better Offers
Crafting a competitive offer can be tricky. In the current housing market, the demand for houses exceeds the supply in many areas, so oftentimes the house you really want will attract multiple offers. An experienced agent can guide you to make the “right” offer, which not only increases your chances of being accepted, but fits your budget. For instance, an agent might suggest waiving certain contingencies to persuade the seller to accept your offer over someone else’s. An agent may also improve your chances of winning a property through negotiations (i.e., you may offer to pay title insurance, survey costs, or the seller’s closing costs).
4. Avoid Problems
Unfortunately, there can be a variety of issues that pop up during the home buying process. An experienced agent has seen them all and knows how to handle them. Some common problems include title issues, inspection woes, and low appraisals. Real estate agents are experts at dealing with the “unexpected,” and can handle the necessary phone calls, procedures and paperwork to resolve problems.
For these reasons and more, the majority of home buyers and sellers (93%) opt to work with a real estate agent versus those who choose to go it alone (7%). Not only will an agent act as an expert guide during the buying or selling journey, but they are always looking out for your best interests. Rely on an experienced agent to get the best home selling or buying experience, while avoiding costly mistakes and unnecessary stress. We’re here to help!
