If you’re selling or buying a home, you might be wondering, “Do you need a real estate agent?” In many ways, real estate agents or realtors (which are licensed agents who are part of the National Association of REALTORS) may be able to help you sell your place or buy your home.
While some real estate agent benefits are well-known, others are more obscure until you’re trying to buy or sell a home without one. From unexpected problems to legal navigation to documents – real estate agents can make buying and selling a home far more convenient. But that convenience does come at a cost. That’s why it’s worth considering the drawbacks and benefits of hiring a real estate agent with the information below.
Pros & Cons of Using a Real Estate Agent When Buying a Home
In the market to buy a new place? Learn how a real estate agent may (or may not) be the right way to go.
The Benefits of Hiring a Real Estate Agent When Buying a Home
You will likely experience numerous real estate advantages if you decide to hire a real estate agent to assist in the process of purchasing a home. Common realtor benefits that you may experience include the following:
- You will receive guidance throughout the home buying process.
- You will receive assistance in determining the best offer amount to put on a home.
- You should easily be able to get recommendations for inspectors and other professional services.
- Real estate agents can negotiate the purchase price of the house on your behalf, something they are likely more well-versed in.
- The purchase of a home commonly takes less time when you have a real estate agent on your side.
- Real estate agents have a better understanding of local market trends.
The Drawbacks of Using a Realtor When Buying a Home
While there are many real estate agent benefits, using a realtor or other such agent may still have its drawbacks. Some of the disadvantages you may face when buying a home with a realtor include the following:
- Your real estate agent may be working with multiple clients and may have their attention divided. This can potentially result in delayed processes.
- Real estate agents are still middlemen. For you, that may mean a lot of waiting as it relates to the calls that the agents will need to have with you and then with the seller.
- One real estate agent isn’t always as good as the next. You will need to take the time to research a real estate agent’s reputation before hiring them to make sure you find the right fit.
- You may end up with fewer homes to choose from, as many agents may avoid homes that are for sale by the owner as the agents will not be guaranteed to receive a commission.
- You have less control over the home buying process when you hire a real estate agent to manage it for you.
Pros & Cons of Using a Real Estate Agent When Selling a Home
If you’re thinking of selling your home, a real estate agent is an option to consider. Learn more about the benefits and drawbacks of working with a professional in the sections below.
The Benefits of Using a Realtor When Selling a Home
If you’re considering selling a home, here are the most common benefits of a realtor or other real estate agent:
- Real estate agents have access to marketing tools that can help your property get more attention.
- Real estate agents are familiar with marketing strategies that can help with the sale of your home.
- Realtors have experience with staging, including in online listings, which can lead to faster and more profitable sales.
- You’ll save a lot of time, energy, and hassle by letting a realtor handle some of the finer details, including tours of your home and open houses.
- Your agent will have more experience with the paperwork side of selling a home and can help ensure that the sale is made legally and without errors or omissions.
- If repairs or upgrades are necessary for the sale of your home, a good realtor will have a network of professionals that you can contact to help get the job done quickly and efficiently.
- Real estate agents have a better understanding of local market trends and can use these trends to your advantage in negotiations and price points.
- Your realtor can handle negotiations on your behalf to help you maximize your profit.
- You’ll likely sell your home faster with a real estate agent at your side.
The Drawbacks of Using a Realtor When Selling a Home
There are many benefits of hiring a real estate agent to aid you in selling your home, but the use of a realtor still comes with its own disadvantages. If you choose to use a real estate agent to help you sell your home, you may experience drawbacks such as these:
- If you hire a real estate agent, be prepared to pay commission. Commission fees are up to six percent of the sale price of your home, on average. That means if you sell a $200,000 home, you may owe your agent up to $12,000 for their services.
- If you use a realtor who has a busy schedule or many clients, you may experience delays in the process, or you may not get as much attention as you prefer.
- Delays are common in working with real estate agents to begin with, and you may find yourself waiting to hear back from your realtor, or your realtor may be waiting to hear back from a potential buyer’s agent or the buyer.
The Real Estate Agent’s Perspective: The Drawbacks and Benefits of Being a Real Estate Agent
Are you considering a career as a realtor? Do you just want to have a better understanding of their role before hiring a professional? Either way, it makes perfect sense to look into how real estate agents typically work, and what their aims may be.
A real estate agent is a person who represents the sale of a home or other property for buyers and sellers. Some agents work independently, while others work as part of a larger firm. Most real estate agents are paid on a commission basis, earning income when selling or buying a home.
There are many benefits of being a real estate agent, including:
- Flexible schedule, primarily if you work independently
- Limitless income potential
- The ability to work with new clients and help them achieve their dream home
- The opportunity to build your own reputation or brand
However, while there are various perks of being a real estate agent, the job is not without its drawbacks, including:
- Potentially long work hours, depending on how many clients they have at any given time
- Slow periods where there isn’t a lot of work coming in
- Only being able to work with most clients once