Why You Should Hire a Real Estate Agent (As a Buyer OR Seller)

understanding the important benefits of representation

 

You might crinkle your nose up at the thought of spending money to hire a real estate agent. ("Don't they just open doors for people?"). But the truth is, having an agent in your corner who has your best interests at heart is critical, no matter if you're on the buying or selling side. Agents can protect you legally, help you take advantage of opportunities you wouldn't otherwise know about, and even keep you out of potentially dangerous situations. Watch the full video to understand why hiring an agent is not something you want to skimp on:

More of a reader? Check the video transcript below!

Hey guys, Brent the Broker here. Today we’re going to answer a question that many people have: why hire a real estate agent at all? We’ll answer this question from the buyer’s AND seller’s perspectives.

As a seller, do I really need a real estate agent?

Here’s why having a high-powered, high-octane agent in your corner is beneficial. For the seller, a real estate agent is going to be able to maximize value. The value of any asset is supply versus demand. What a good agent will do is they will drive demand for your property.

And how do they do that? Proper preparation. That doesn’t necessarily mean a full kitchen remodel. In fact, a lot of times it means something less involved than that! Things like making intelligent fix-ups to the home, positioning the property well with professional photography and videography, and distributing that media to the proper channels online (because, as we know, 90-something percent of home buyers start their searches online. The curb appeal is no longer in the front - it’s on the Internet!).

A second reason why a seller might want to work with an agent is that you get the certainty of sale. Is this deal going to close? Do I know this buyer? Do I know the parties involved or going to be able to get the deal done? Working with an agent will give you peace of mind about these questions.

Another crucial piece is legal protection. A real estate agent will make sure that all of your proper disclosures and all the transaction documents are in line and in compliance so that a buyer doesn’t come back to you after the sale and sue you - you’ll know that all your ducks are in a row.

Another piece of the legal puzzle is - what if your agent screws up? What if your documents aren’t in a row? Well, a good agent will be insured for errors and omissions so if there is a mistake, the insurance will cover it, putting a layer of protection between the buyer and the seller.

Next, let’s talk about negotiations. It has been shown that haing a buffer between the buyer and the seller during the negotiation process tends to bode well. Sometimes it’s hard for the seller if you’re dealing with the buyer directly. It’s hard for a seller to say, “hey, I’m not going to cut the price” or, “I’m not going to do this repair.” Negotiating aggressively is hard when you’re starting someone right in the face. But for an agent that’s representing you, it’s easier to go to the buyer and say, “hey, sorry, the seller won’t do that.” And if they get upset, the agent can look at them and say, “sorry, it’s not my choice - it’s up to the seller.” This way, you don’t have to deal with the ramifications of that, and things tend to end up in your favor!

As a buyer, do I really need a real estate agent?

So, what about our buyers? Why would you need to hire a real estate agent? I mean, all we do is open a door, right? Can’t anybody do that? Well, a good buyer’s agent will do a few things.

First, they will negotiate your best interest against the seller. There’s the purchase price, the inspection time periods, and your ability to do an inspection. There’s also negotiation about repairs - which repairs are traditionally done by the seller, and which ones are typically the buyer’s responsibility? It helps to have someone in your corner who negotiates day in and day out through hundreds of home sales, who knows when to say, “hey, no, we need to push on this a little harder.”

I had a buyer client one time that, after a home inspection, did not want to get the heating system inspected any further. To make a long story short, after me pushing on them to go through with a more detailed inspection, a major safety hazard with the heating system was found - a carbon monoxide leak. My buyer was able to negotiate a large credit (we’re talking upwards of $6K) with the seller! If I hadn’t pushed them to do that inspection, they would’ve ended up responsible for an expensive repair on top of a potential health disaster for the family.

Another reason - real estate agents are in “the field” all day - whether that be making calls with other sellers, meeting with other agents, and talking to homeowners who might consider putting their homes on the market for the right price. This might give you off-market opportunities that wouldn’t have been available to you without an agent.

Another huge reason is, again, legal protection. I can’t tell you how many sellers and agents go to give us the disclosures related to the property and there are things that are obviously missing or blatantly incorrect. Having done this dozens and dozens of times, there are things that an agent will know are missing that a buyer wouldn’t notice.

On top of that, if there is some legal error, agents are insured with our errors and omissions insurance, so if there does end up being something that happens, there is a layer of protection between the buyer and seller.

Pro Tip of the Day

This brings us to our pro tip of the day: when you are out there interviewing agents, make sure to ask them lots of questions and go with someone who has the heart of a teacher - someone who has an interest in learning about your goals, that will guide you through the process of making this important decision. It shouldn’t feel sales-y or pushy - they should not be trying to convince you to work with them. Real estate is not rocket science and most people reading this are sharp enough to understand what’s going on here.

So, find an agent that’s willing to teach you the game and allow you to make the decision that works best for you. When it comes to questions to ask, the most important questions that will give you the most insight aren’t questions like, “how long have you been in the business?” or “how many homes have you sold?” Although those things are important, you really want to be asking…

“Do you have experience in working with these kinds of transactions?”

“What can you do to help me find the best financing options?”

“What do you do to seek out off-market opportunities?”

At the end of the day, you want to make sure you have someone that doesn’t make you feel pressured or stressed. Rather, you want someone who you can really get along with on a personal level.

That’s all from me today, guys! See you soon!

 
 

Brent Edwards (aka Brent the Broker) is a residential real estate agent and Realtor in San Diego, CA who helps clients buy and sell homes in San Diego, California and all surrounding areas. Brent is a highly-recommended Realtor in San Diego by family, friends and past clients. Call Brent today at 619-550-8070 if you have any questions about real estate in San Diego or you'd like to buy or sell a home.

 
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