There is a general misconception when it comes to real estate agents and what their purpose is. One of the most common question that investors have is, why do I need a real estate investment agent? What does a real estate agent do for me? And wouldn’t I save money if I just cut the middleman and sell or buy the house myself? The answers lie in the purpose and efficiency you require from a real estate investment agent. A real estate agent is a licensed professional that has the task of representing both buyers and sellers in a transaction involving any type of real estate. An agent’s payroll is dependent on the completion of sales and transactions for them to cash in on their commissions. An agent’s tasks will of course be different depending on what end of the deal they are and which party they represent.
Seller’s Agent: When an agent is representing the selling party, their job is to basically find the best deal that will give the seller maximum profit for their property. An agent will also advise the client on the preparations needed and improvements that can boost the price of the house. Agent’s use advertisement and networking mainly as marketing techniques for the seller’s property.
Buyer’s Agent: An agent who is representing the buyer has the exact opposite task than a seller’s one. The main task is finding the cheapest property that fits the profile the buyer is looking for. Based on their experience in sales and the market prices, real estate investment agents are able to identify areas and particular properties that fit the budget.
That answers the question of the tasks and duties of a real estate investment agent. However, based on this information, how do you decide if you need one for your property in particular or not?
Why Hire a Real Estate Agent?
Buyer
Hiring a real estate investment agent is a way for the buyer to get rid of the daunting task of looking and finding a property within your budget. An agent, who is already employed by a real estate agency, will provide you with choices almost instantly in a location you ask for. An real estate agent will be able to give you a tour in the property you are interested in at a time that is convenient for you. This is almost impossible to happen without an agent if you were house hunting on your own because of all the technicalities involved between buyer and seller.
The only negative that makes people think twice before hiring a real estate investment agent is the commission that has to be paid when the transaction is done. If you compare that to the most appealing trait of real estate agents, then the balance should edge more to hiring one. Consider buying property on your own without having the data and expertise that a real estate agent has, and you could end up over paying for a property. An agent’s main task is finding you the property you want for the price you want, an agent negotiates directly with the seller on your behalf to bring you the best possible price.
Related: Buying An Investment Property: Be Ready For It To Be A Buyer’s Market
Seller
For the seller, it is a different prospect because for a seller to proceed without a real estate investment agent means that they have to deal with showing the house, negotiating, finding the right price and arranging legal issues. For sellers, it is always recommended to hire an agent because of their ability to do the little tasks that can become distracting and hard for a seller.
Also consider the fact that most sellers have no clue about pricing, which makes hiring an agent even more important. That happens because most sellers usually buy their properties, hold on to them, then decide to sell or renovate them and decide to sell them. Either way a seller is not fully equipped to give an assessment of that type to get the best price possible for the money they invested.
Related: Selling Your Investment Property: When Is The Right Time?
In conclusion, your need for a real estate investment agent is a personal choice that can lead you either way. Yes, it costs money but is it not better to be prepared and on the safe side than face regrets later? Unless you are an expert in the real estate market with years of experience under your belt in both selling, buying and dealing with every tiny detail then hiring an agent is necessary cost. Agents and realtors in the end are tied by a certain set of rules of ethics to serve sellers or buyers to the utmost honesty in serving their best interest and that is why they are worth your time and money. If you have trouble accepting the costs, think of it as an insurance for experience you might sorely lack at first.