In the real estate industry, you’ll come across numerous things and terms, but “free lunch” isn’t one of those, especially when you’re planning on hiring a real estate broker.
For the majority of investors, they are aware that when you hire a broker, you can’t expect them to offer their services for free. Their services, including their advice, comes with a price, usually through their high commission fees. If you’re a real estate investor that can pull off any trade without the help of a broker, then congratulations! Most of the time, this happens whenever you’ve tapped a hot sellers’ market, and that you can obtain properties and sell your investment for a good amount of profit. However, if you’re new to this, or if you prefer guidance from someone who knows the ins and outs of this field, don’t worry because working with a Realtor comes with numerous advantages. It’s also worth mentioning that a lot of buyers in this industry prefer buying homes and properties from real estate agencies instead of looking for properties on their own. With that being said, if you come and think about it, there’s a greater chance of losing a huge percentage of potential buyers if you decide to work on your own. Always remember, however, that there are no hard rules when it comes to real estate investing, and the decisions you’re about to make are to your own discretion on how you’ll strategize and promote your real estate portfolio for bigger investment returns.
4 Benefits Of Hiring A Real Estate Broker
1. Time Saver
When you hire a reliable and experienced real estate broker, you don’t have to spend time trying to figure out how it works when it comes to buying and selling properties. You’ll surely save a great amount of time when you work with a professional Realtor that has extensive experience and one that has a good education in helping you close a deal on a home, or for any real estate property for that matter. Additionally, it doesn’t just save you time, but on your end as an investor, you’ll find it super convenient. Since you’re going to be working with a broker, they will act as a mediator for all types of transactions between the seller and the buyer, considering that they have unrestricted access to all of the properties that other agents have listed within the area. For instance, if you’re interested in investing in a rental property, your broker will look for different properties in the area that meets your preferences and guidelines, contact the seller and set an appointment with them so you can view the property – all of these are done on your behalf.
2. Negotiation Is A Skill
There’s no denying that negotiating and persuasion is something that you can’t learn overnight, not to mention that it’s easy to pull off. It’s an art – it’s a skill, and for investors, letting the brokers do this process means it’s easier and more convenient for them. The realtor can articulate their objections and make it easier for them to negotiate and even get bigger discounts to bring down the property’s price.
3. Finalizing Paperwork and Contracts
If you’re the type of person who likes going over an endless number of contracts and paperwork, then you may not need a professional agent and just do everything on your own. But seriously, one of the major reasons why investors hire an agent is because brokers finalize all paperwork required to close the deal because they are the ones who are familiar with all the terms and conditions to make sure that your contracts are legally binding.
4. Market Trends
Brokers are equipped with tools and are equipped with the knowledge to help figure out the real estate industry’s trends making it easier for you to make better decisions when investing in a certain home or property. In general, it’s safe to say that hiring a professional is definitely worth your money.
4 Cons Of Hiring A Real Estate Agent
1. High Commission Margins
As mentioned earlier, working with pros also come with a price, especially if you’ll be hiring an experienced agent working full-time in the real estate industry. In general, investors pay their brokers 6% of the total house sale and not the profit they’re going to get from that sale. This means that if you don’t make a profit, it simply means that your real estate agent will get paid regardless. An alternative solution for this is hiring a discount broker for lower commission costs.
2. Not All Agents Are The Same
This goes by saying that not all real estate agents have the same credentials, and not everyone is fully equipped with skills and knowledge. Make sure that you check their history such as recent sales, credentials, how long they’ve been in the industry, etc. It is crucial that for this to work, you need to hire someone who will be able to help you in terms of maximizing your profit, instead of the other way around.
3. Agents Work With Multiple Clients
Most of the time, agents also take care of other clients and depending on the number of clients the broker has, your property may not be getting the attention and work that it fully deserves. This then results to calls not being returned on time, missed deadlines and possibly deals may not go through.
4. It May Take Time
If you have hired an agent that’s not fully devoted or isn’t working full-time in the industry, you may find that it’ll take a while to sell your property. Make sure that you find an agent that will be able to work with your schedule and be patient with it. This is one of the cons that you have to bear when working with someone in this industry.
How To Find A Real Estate Broker For Your Needs
In the business industry, there’s this what they cal las the 20/80 rule, and here’s how it works: 20% of the real estate brokers will do 80% of the overall work, and this is true to all real estate agencies in the USA. If you want to become more efficient and cut your work into half, then hiring a real estate broker is crucial and is the key towards becoming financially successful.
Here are some things that you need to check before hiring someone:
1. Make sure you check their credentials. Is he/she licensed? Is your agent working full-time? Ideally, find someone who has at least 3-5 years of experience in the field, and hire and work someone whom you trust the most.
2. Ask family and friends for referrals. Realistically, you would want to hire someone who knows the ins and outs of the local market.
3. Do not hesitate to ask for their track record or recent sales. They won’t be offended if you do, and this will give you an idea on the number of properties he/she was able to close recently, including the total amounts these properties were sold for.
4. Talk with three agents before making a final call. Remember to take your time and not feel pressured at all when looking for a real estate broker. Take your time, do your research, and if necessary, talk to as many brokers as you can until you find the perfect one for you.
Hiring a real estate broker generally depends on the market conditions and certain situations. Consider using Mashivor service for full access to data on real estate market trends and informed buying and selling decisions.
Listing At The Right Price
One of the rules that real estate agents need to live by is putting your home on the market at the right price. While this is not a written rule, the flow of the current market will dictate this. When it comes to determining the best list price, a real estate agent will compare your property to others that have sold and consider a number of other factors that you may not be aware of.
Better Presentation Of The Property
Home viewings are vital if you want to sell your home. When anyone views your home, it is likely that an estate agent will be with them. This could be a buyer agent or your own agent. Having your agent handle the viewings is important because they are able to discuss concerns potential buyers have and answer questions while presenting your home in the best light.
Getting More Buyer Exposure
Before you hire an agent to sell your home, you need to ask them about their marketing strategy. All good real estate agents will have a solid marketing strategy and it is usually one that you will not be able to complete on your won. Their strategy will often include internet exposure through listings, canvassing the neighborhood, holding open days and pushing your home on social media. There are some agents who have more comprehensive plans as well.
Getting Higher Offers
A lot of people do not realize that they will get higher offers from potential buyers when they use an agent. Real estate agents have the power and experience to negotiate contracts and will work on your deal to get the best possible price. They will also be able to handle multiple bidders and work this in a way that pushes up the price. When you sell your home on your own, potential buyers will often offer a lower amount because of a perceived lack of experience.
Negotiating The Results Of Inspections
Before your home is sold, it will be subject to an inspection. This is something that all buyers will do because they want to feel secure in their purchase. You should not feel slighted when an inspection is done, but understand that the results of the inspection can affect the offer you get. If there are problems found during the inspection, the potential buyer will lower the offer. A real estate agent will be able to negotiate with the buyer about the reductions and generally get a better end result than you might be able to.
Speeding Up The Time To Close
Good real estate agents will have a firm grasp of loans and how these transactions will close. They will also know all the dos and don’ts when it comes to selling and purchasing a property. When you sell your home, the real estate agent will be able to proactively get the paperwork done to bring the closing process to an end quicker. Of course, you will need to ask the agent for updates regularly to stay up to date with the transaction, visit real estate agents on Medium.
Getting Top Dollar
This benefit is linked to the higher offers you will get from potential buyers when working with an agent. Agents will place your home on the MLS where other agents have access to it. This increases the exposure of your property and will lead to more people being interested in it. When there is more interest, you are more likely to get your asking price.