What are the Benefits of Using a Real Estate Agent?

Even with all the trouble going on as it relates to air travel this year, I would still much rather travel with a licensed pilot to get me from Boston to Florida instead of trying to do it on my own.

There are a number of professions that come to mind that 10 out of 10 times, I am going to want a professional. For many of us, the list would include - surgeons, pilots, mechanics, tattoo artists, roofers and many more.

The great debate seems to be Realtors, should you use one or not?

                       What are the Benefits of Using a Real Estate Agent?

Let me be very clear from the beginning, this is my opinion and 99% of this blog will be such. I am not going to tell you to use a Realtor or not but I will share with you today some of the pros and cons I have experienced over a dozen transactions with and without them.

                                                             Pro’s

Professional Comparative Market Analysis (CMA) -

A true professional will not only know the areas you are looking to buy and sell in but they have the tools to support their craft. Many have paid subscriptions to market data and reports the average Joe like you and me dont have unless we pony up.

When buying, a well done CMA can help you negotiate a lower purchase price when you are the only one at the table or as back up leverage when negotiating while under contract.

When selling, you will be clear you are in line with current market trends and priced to sell within a reasonable time on market.

As you do more deals, your realtor will be more inclined to run these for you on any property that catches your eye as a potential investment. Until you’ve built up good will, don’t ask your realtor for too many of these as it does take time and effort to produce a quality product.

Time is Money -

As you start to grow your portfolio, time becomes more and more valuable. You will likely want to be overly involved on your first deal or two but as you come to learn the process, you will find that a dedicated professional will save you time and likely do the job better.

I say likely because as Reagan stated, “Trust but Verify”. Even the best make mistakes so use the professionals to do all the dirty work but always look over important drafts and always approve every final copy when it comes to documents.

Network is Your Net Worth -

In the Real Estate, more deals than people realize are done off the market.

Every deal we do we have our realtor (who does a number of investment deals himself every year) market our buildings a few weeks early to both our networks. For us this has worked a few times and for the effort, can save you tens of thousands if your realtor can represent both sides of the deal.

Knowing that they can make more money, a smart Realtor will take this stage very seriously.

                                                                Con’s

Not All Professionals are Created Equal -

You should interview a few before making a decision on your first buy or sell. Even so, there may be times when you find your Realtor may not be top notch. To avoid getting stuck with a dud for long, never sign a contract that extends out over a three month period. A good realtor would never argue this point.

Babysitting is Expensive -

We don't have kids but our friends say daycare is expensive! I believe it because chasing professionals to do their job can also be exhausting and expensive! On your first deal or two, be really involved… This will allow you to learn quickly and better delegate what you're comfortable with on future deals.

Cost Money -

Yes, Realtors cost money. Typically anywhere from 1 - 8 % depending on the scope of the deal and what is involved with 4% being very typical here in New England.

Could you do everything a Realtor does? Sure, why not.

Could you make your own clothes, mend your own shoes, build your own furniture and so on? Yes, sure but why not hire a professional to take this off of your plate.

As I started out, using a Realtor is a personal preference and today you got to hear a lot of my opinions so thank you if you’ve made it this far.

We have done twelve deals in the last seven years of which nine were done with realtors. The only times we don't use Realtors are when we can source seller finance deals on our own. For these, we just have our Realtor run a CMA knowing they will likely get to list the building for sale when that day comes.