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.