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Why hiring a real estate agent is the best way to sell your home

Some homeowners believe that selling your home on your own will save you money, but here are some important things to know about “For Sale by Owner” and why hiring a professional real estate agent is worth the commission price.

06 Oct 2022 min de leitura

Why hire a real estate agent?

Some homeowners believe they can save thousands of euros by selling their home without an agent. The amount of effort, time and cost involved is underestimated, and they soon discover that they need exceptional negotiation, legal and market knowledge to sell their home without a professional real estate agent. Here are some of the reasons why hiring a real estate agent far outweighs the price you pay for a commission.

1. Real estate agents have access to a vast network of real estate advertising

A real estate agent has connections with buyers and contacts that he keeps informed about the new properties he puts on the market, and quickly publicizes the property he has just launched. Even if the owner believes he has a large network that will share the property, this will undoubtedly be a much smaller group of potential buyers. A small group of potential buyers will not generate high demand for the property. The homeowner will wait longer to sell their home and will likely not get the price they expect.

It is common practice in some countries for buyers to hire real estate agents to help them find a new home. In these countries, a buyer´s real estate agent may discourage their clients from seeing or even making an offer for a home for sale by the owner. Agents have often had negative experiences with sellers who set an unrealistic price, are generally unaware of what they are doing and have an emotional attachment to their home.

A real estate agent has access to real estate advertising services, especially if they are international advertising networks, where there is the potential for millions of buyers to see real estate listings. Homeowners are often unable to place their home on these platforms and have to pay out of pocket to market it.

This leads to our next reason that hiring a real estate agent is worth the price of the commission.

2. Agents represent the business of selling your home

Selling your home is an emotional process. Hiring an agent to represent your interests will keep personal feelings away from the business of selling the house. With the impersonation of an agent the owner is less likely to make mistakes; such as price out of market value, being offended by low offers, or failing to manage the trades. The real estate professional will communicate with potential buyers on behalf of the owner without the anxiety, despair or lack of cooperation that can arise in a sales situation.

Without representation from an agent, owners will also have to deal directly with rejection, disappointment, and negative feedback. An agent can counter these points constructively, advising and discussing options and responses on behalf of the owner, from a less emotional state. Selling a home always has a degree of emotion, but it will be easier to have an agent who represents the owner´s interests and is on his side. An agent is the link between emotional attachment to the home and the act of closing a deal.

Real estate agents liaise between agents, financing entities, property companies and inspectors, while homeowners will have to do all these negotiations themselves.

3. Real estate agents offer added value

When selling a home without an agent, the costs to prepare it, take pictures or videos, and pay for marketing are all on the seller. These combined expenses can become high. Don´t forget that it takes time and effort to organize open house days or visit by appointment, where owners have to fit visits into their usual schedule. There will be an avalanche of requests for information, often from unqualified potential clients, from people who are just curious to see the inside of the house. Note that an “For Sale by Owner” homeowner does not always avoid paying all of the agent´s fees, as the buyer´s agent is more likely to ask for a commission (generally 3%) for the sale of the home and the your services to the buyer.

For most seller owners, it pays to hire an agent to handle these things. A real estate agent will help them prepare the home for potential buyers, take photographs, develop high quality videos and advertise the property on a property listing service or on real estate portals. Open house, property visits and consultations with potential buyers will be scheduled at the agent´s time, so homeowners don´t have to take time off work and reorganize their lives to show the property.

Statistics show that, on average, you make more money from a sale with a real estate agent than from a direct sale. (NAR)

4. A real estate agent knows the legal aspects of selling a property

The sale of a property is a legal contract, so a homeowner who does so on his own will be required to negotiate and handle all the paperwork associated with this process. There is a legal process that involves interactions with the buyer, attorney or solicitor, the property inspector, the appraiser, and the bank. Then there are the negotiations and legal procedures to deal with the owner and financial institutions. Sellers who are unfamiliar with the legal aspects, terminology and process may run into legal difficulties if they don´t do it correctly. Some jurisdictions have specific regulations for selling a property and may not even allow you to make a sale of the property without an attorney present.

Real estate agents will mediate commercial negotiations and transactions between agents, financing entities, title companies, lawyers, inspectors, and all the steps mentioned above. A real estate agent knows the legal aspects of a sale and their service on behalf of the owner ensures they don´t end up with legal problems on their hands. Over a lifetime, if you sold all your properties, you would sell between 1 to 2, but a real estate agent trades several properties a week as it is his full-time job.

5. Being a real estate agent is a full-time job

Many homeowners believe that selling on their own saves the cost of hiring a real estate agent, but they often don´t consider the price they pay in other areas, such as time spent and lack of experience. If a homeowner can´t take time off work every time a buyer wants to see their home, or excuse themselves with compromises to negotiate and send documents, their property will be on the market longer than desired, that will make buyers suspicious that there is something wrong with the house. This costs the homeowner money, as the longer the house has been on the market, the less likely it is to sell.

A real estate agent devotes time and energy to selling the property, while the owner often struggles to manage visits and appointments. It is for these reasons, among others, that hiring a real estate agent means that the owner enjoys the service of a full-time professional. A real estate agent offers the owner advice on placing the property on the market, advises him on the best market price, seeks and qualifies potential domestic and foreign buyers, and manages requests for information, visits and proposals. Agents work long hours, including nights and weekends, to sell the home at the right price in the shortest possible time. These professionals know the market, recognize purchasing trends and understand the legal requirements of the sector. When you hire a real estate agent, you are benefiting from the sales experience that has been gained through a full-time commitment to the profession, something that a “For Sale by Owner” homeowner could not match.

Benefits of hiring a real estate agent

People who sell on the “For Sale by Owner” scheme expect to make more profit from the sale of their property. However, real estate agents have the necessary experience and skills when it comes to pricing, marketing and negotiation. For this reason, “For Sale by Owner” sellers may end up making less money from the sale than if they had hired an agent and paid the commission. It can also take much longer to sell the property on your own, as the homeowner´s market reach is limited to their budget and restricted to their knowledge of where to market. Selling a house alone means it will dominate your life! There is a need for the owner to understand the investment of time, effort and money required to make a sale on their own. Together, you may want to consider other options for selling your property.

Source: ListGlobally

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