When investing in real estate, many might wonder if it is worth it to work with a real estate agent to help in the process. What are the advantages and disadvantages of hiring a real estate agent?
According to Yvan Cournoyer, a real estate specialist, hiring a real estate agent to help purchase a property can be very beneficial.
The Advantages of a Real Estate Agent
The first advantage is that the agent is usually more experienced in negotiating. Indeed, the real estate agent can negotiate for you or check crucial elements of the property before you purchase it or enter into a transaction. Real estate agents are particularly beneficial when large sums of money are involved.
The second advantage, according to M. Cournoyer, is that an experienced agent will know the local market well. Thus, they will be able to guide you toward a property that suits what you are looking for. They can also advise you on the local market.
The third advantage of doing business with a real estate agent is that they have access to effective tools exclusive to real estate agents. Software like Matrix, which are exclusive to real estate agents, allow them to find out more information about properties. This tool can also carry out comparative analyses of similar properties. This way, the agent can estimate the market value of a specific property and help you make the right decision when it comes to purchasing it.
The fourth advantage is that real estate agents have professional liability insurance, which can protect you during the purchase. The agent can also help you better understand and draft the terms of a purchase agreement. Remember that real estate agents are qualified professionals that can provide you with their expertise. If you are not comfortable with the paperwork and want to save time, you will love working with a real estate agent.
The Disadvantages of a Real Estate Agent
What are the disadvantages of doing business with a real estate agent? First, the real estate agent will be the broker between you and the seller, which can make the communication with the seller more complicated. When you want to tell someone something, but the information has to go through another person, the original message can change. Therefore, you will have one more player to deal with if you do business with a real estate agent.
The second disadvantage is that, sometimes, the seller will pay the real estate agent a brokerage fee. Thus, the seller might not lower their selling price as much as if you had done business directly with them.
The third disadvantage is that you need to spend time to find the right real estate agent for you. As a buyer, you have needs and expectations, which is why you might not find the best agent for you right away. Make sure that the candidates you selected understand what you need and are able to meet your requirements.
Moreover, you and your agent will have a contract, which you should carefully read to not be stuck with a contract that you do not agree with!
In short, doing business with a real estate agent when purchasing a property has its advantages and disadvantages. It is up to you to decide if you are experienced enough to start your real estate projects alone or if you could benefit from a little help!