Are you considering buying or selling real estate in the near future? Then you should seriously consider using the services of a real estate agent.
You would be forgiven for thinking that buying property for rental is the new trend. So many people are turning to real estate as the answer to their financial woes and with good reason. It can be a solid way to build wealth as well as a passive stream of income, but as with all investments, it doesn’t come without risk. It is hard to understand the mixed signals that we see in the headlines. Take a look at this from Global Property Guide, for example.
“Housing demand is rising in the U.S., but house price-rises are slowing. Why this seeming contradiction? The answer is simple: Increased housing supply and more new-builds are coming onto the market, so demand pressures can more easily be met.”
The property market is complex and full of complicated processes along with plenty of jargon. And this is why an agent could be invaluable to you. If you are not an expert, it probably won’t be long before you feel out of your depth when going it alone. That is not ideal when you are purchasing a house – which is a huge commitment – and mistakes can cost a fortune!
Of course, selling rental property through an agent means that you will be paying them a commission, but their advice and expertise can save you in the long run. So, before you reject the idea of hiring a real estate agent (or Realtor) in exchange for going it alone, take a look at what you are dismissing.
Before we dive in, you should also be aware that not all real estate agents are Realtors. An agent with the title “Realtor” is part of the National Association of Realtors, which comes with a strict code of conduct. Take a look below for more detail:
A REALTOR® is a licensed real estate salesperson who belongs to the National Association of REALTORS®, the largest trade group in the country.
Every agent is not a REALTOR®, but most are. If you’re unsure, you can ask your agent if they’re a licensed REALTOR®. REALTORS® are held to a higher ethical standard than licensed agents and must adhere to a Code of Ethics.
REALTORS® should recognize that the interests of the nation and its citizens require the highest and best use of the land and the widest distribution of land ownership. They require the creation of adequate housing, the building of functioning cities, the development of productive industries and farms, and the preservation of a healthful environment.
Such interests impose obligations beyond those of ordinary commerce. They impose grave social responsibility and a patriotic duty to which REALTORS® should dedicate themselves, and for which they should be diligent in preparing themselves. REALTORS®, therefore, are zealous to maintain and improve the standards of their calling and share with their fellow REALTORS® a common responsibility for its integrity and honor.
1. Network and Connections
One of the most valuable assets an agent can bring to your rental property transaction is people. An experienced real estate agent has built personal connections and relationships throughout their career. This network is one of the strengths enabling them to move quickly in the market and to make sound decisions. The real estate agent’s network can also be beneficial when it comes to selling property as they may assist with marketing and can bring more traffic to your property than you could without their assistance.
Their network should include a team of tried and trusted professionals across the industry, who are accustomed to working together. Their network may include attorneys, contractors and accountants for example – teamwork is the cornerstone of their success, as seen here:
“Keller Williams was designed to reward agents for working together. Based on the belief that we are all more successful if we strive toward a common goal rather than our individual interests, we're confident that every Keller Williams professional shares the vision of serving our clients at the very highest level possible.”
If you were going it alone, you would have to rely on your own judgment and build a team from scratch, which is not only time consuming but also risky.
2. Insider Knowledge
An experienced real estate agent will have an intimate knowledge of the rental property industry. You should choose someone who knows the location you seeking and who is used to dealing with the type of property you are interested in purchasing. The right agent will be aware of current trends due to their constant immersion in the market.
Plus, agents have access to hidden information and listings that are not publicly advertised, which means that they may be able to provide you with access to properties you may not have known about without their input. This knowledge is incredibly valuable when buying rental property, and it is usually far more in-depth than the research you could achieve on your own.
Additionally, Realtors and real estate agents are aware of the ethics, codes of conduct and unwritten rules of the industry … nuances you may not be aware of yourself. Opting for a real estate agent equates to putting yourself in the hands of an expert.
“Going above and beyond.
That's the sign of a RE/MAX agent. Buying or selling, you'll have a trusted pro guiding you every step of the way.”
3. Problem Solving
Realtors are familiar with the typical roadblocks that tend to crop up when buying and selling property, so they will be unfazed by situations that leave you reeling. By remaining level-headed and determined to close a deal, they could prove to be ideal at solving last minute or emergency issues that arise.
What would you do, for example, if you were faced with one of these problems chosen from Investopedia’s top 10 problems preventing closing a deal?
1. The termite inspection reveals extensive damage.
2. The appraisal wasn't high enough.
3. There are clouds on the title. (Any document, claim, unreleased lien or encumbrance that might invalidate or impair the title to real property or make the title doubtful.)
4. The home inspection reveals major defects.
5. The seller backs out.
6. The home isn't insurable.
Your real estate agent knows!
4. Expert Communication
Realtors are fantastic communicators, expert negotiators and great sales people. This means you can rely on them for the tricky conversations that always come up in the buying or selling of real estate. Effective communication for sales is a skill that takes time to learn and develop, so if this is not a strong point of yours, a real estate agent could be essential.
“Your communication skills determine your chances of a sale – from your opening pitch to your closing statements. Developing your questioning, vocal and conversational skills will help you build on a strong first impression by gaining trust and establishing credibility.”
An agent will also be an ally to guide you through complicated and sometimes nerve-wracking scenarios such as dealing with counteroffers and rejections of offers. They will be able to recommend and implement strategies that can close a deal without losing money.
Often, people don’t anticipate that the buying and selling of property can be a full-time job, requiring attention around-the-clock. There are numerous people involved in the process, and it can often be difficult to meet all of their needs in a timely manner, especially if you are also juggling other commitments. This is, of course, the perfect time to turn to your real estate agent, who will work all hours of the day or night to service the deal.
While the initial thought of paying commission can be off-putting to sellers, the service provided by experienced Realtors can be invaluable to securing a great deal. For buyers and sellers alike, the amount of time and money saved by using an expert ally is considerable. They can guide you through the complicated processes, avoiding mistakes and making the entire transaction simple for you.
Most realtors have an extensive network of business connections they can call upon to help with closing your deal. These trusted experts in the industry will also work on your behalf. Agents have unparalleled insider knowledge of their housing market that you simply won’t be able to match with online research. They are also experts in problem solving, sales negotiation and communication, too.
These are five key benefits of using a real estate agent to buy or sell your property, and this is just a sampling of how they can assist. So, why not take a bit of time to find out how you could benefit from a Realtor before forging ahead alone?