In this blog I'll be discussing the pros and cons of hiring a real estate professional, and whether you actually need one or not when selling your home.
Okay, so you've decided to sell your home, you then have to consider how you want to go about selling it. If it's your first time selling a home, it could be a little bit confusing of where to start first. Is selling your home as simple as calling your local realtor and letting him or her take it from there? How did you even find the right realtor in the first place? And the big question, do you even need to hire a real estate professional?
Well, the answer to these or most other questions regarding the sale of your home is it depends. It depends how quickly you want to sell your home, how much time you have to devote to the sale of your home, how much you want to sell your home for, and not to mention how much of that sale price you are willing to pay your real estate professional as a commission.
It is worth noting, approximately 93% of home sales involve a realtor at some degree. In many cases, hiring a realtor is absolutely in the best interest of a home owner. As in all stages of home selling, it is important that you understand all of your options, as well as the pros and cons of each when it comes to hiring or not hiring a professional realtor.
Okay, let's start with the advantages of hiring a real estate professional. As with any other profession, there are great realtors and not so great realtors, with the vast majority reside in somewhere in between the 2 extremes. Before you agree to hire someone, be sure to do your homework. I did a great video which you can watch on the 3 simple steps to help you choose your realtor (Watch Here - https://youtu.be/5tx84eDsXy4). There's always Google My Business and Yelp as additional online resources where you can find reviews on realtors in your local area. Doing a bit of research on the internet can save you a lot of time and frustration, helping you weed out the professionals with poor reputations in your community and zero in on those that have earned the trust or respect of their clients.
- A highly trained educated realtor will be able to sort through the dozens of pages of fine print and make sure your sale is done 100% by the book. You are far less likely to have to worry about errors and omissions, and if they do occur, a licensed real estate professional will have insurance to cover them, limiting your risk.
- Unless you're willing to devote your evenings and weekends to do showings of your home, not to mention staging of your home to make those showings worth your time, hiring a real estate professional who will take care of it for you is a great advantage.
- A good realtor will have a network of professional contacts, including home inspectors, conveyance notaries and lawyers, landscapers, contractors to call on, if necessary, to get your home into shape.
- Having an expert in your local real estate market on your side is essential as no one will know the local market better than an experienced realtor. He or she will know the market trends, how to set appropriate price points, and the best avenues for advertising your home's availability.
- Negotiations in selling a home is an art, and most buyers and sellers have little experience with that art. A good realtor will negotiate on your behalf, which could end up maximizing your profit in the end. In fact, having a realtor in your corner will encourage potential buyers or their realtors to bypass the lowball offer and cut straight to a reasonable offer, as they know they are dealing with a real estate professional and not an amateur negotiator.
CONSNow the disadvantages of hiring a professional realtor. If you hire the right realtor, you won't encounter many disadvantages. However, if you hire the wrong realtor, you'll learn more of the following disadvantages more than you had bargained for. That's why it is vital to carefully research and thoroughly interviewed any realtor you may be considered hiring. If you don't feel comfortable with a certain realtor for any reason, even if it's just a gut feeling, move on to the next candidate.
- Hiring a realtor, especially an experienced full-service realtor, is expensive. Prepare to pay a realtor around about 3.3% of the total sale price of your home in commission. You can reduce that commission by hiring a discount broker, but you will also have... likely they have to do without some of the benefits as we described earlier.
- Depending how busy your realtor is with other clients, your home may not get the attention it requires. You need to be assured of having a realtor that will do his or her due diligence at every stage of the selling process. The busier your realtor is, the more likely you will experience frustration of not having your calls returned in a timely manner, deadlines being missed, and deals falling through.
- Depending on whether your potential buyer is also represented by a realtor, any potential deal will have to go through possibly 2 intermediaries. This could facilitate a deal or get in the way of progress, depending on the skills and abilities of the realtor or the realtors involved.
- You have your goals and priorities, you've established your ideal timeline, hiring a realtor introducing somebody else's timeline into that mix, well, that may or may not conform to yours. If your realtor does not devote the necessary time and effort, your home may sit on the market much longer than it needs to be. Conversely, if your realtor is eager to unload your home for whatever reason, he may make decisions that conflict with your goals in order to sell it faster.
Unfortunately, some people don't realize that they've selected the wrong realtor until they are in the thick of a home-selling process. That's why you cannot base your decision on whether to hire a realtor solely on his or her pitch to you. Remember, realtors are generally excellent salespeople and they know how to sell themselves. By gathering as much information as you can on a realtor, you at least minimize the chances that you'll be caught by surprise or in a bad experience.
So, there you have it, some of the pros and cons of hiring a real estate professional. Regardless with whatever you choose to do, a huge key is research and getting the right information and looking into all the options to ensure that you are making a fully informed decision for yourself.
If this blog led to more questions, or you'd like to talk to somebody about the idea of listing and selling your home, please don't hesitate to reach out. I know a pretty good realtor.