Should I Hire a Real Estate Agent?
Saturday Jan 15th, 2022
SHOULD I HIRE A REAL ESTATE AGENT?
Real estate has been a hot topic across the U.S. and Canada in recent years, from sky-high valuations and bursting bubbles to bidding wars and supply shortages. Compounding that are federal election factors on both sides of the border and COVID-19 clouding conditions in housing markets worldwide. Add to this the “typical” intricacies attached to a real estate transaction. If you’re in the market to buy or sell a home, you may have asked yourself, should I hire a real estate agent? Now more than ever, the answer is a resounding YES! If nothing else, these current market conditions are reason enough to consider working with an experienced, professional real estate agent, but there are many other benefits to consider.
Now, you may be thinking, “Of course you’d say that, RE/MAX.” Fair enough. Let’s put some hard numbers behind these claims.
- 41% of Canadians claim they aren’t knowledgeable when it comes to buying or selling real estate, according to a 2021 RE/MAX survey.
- 33% of all homebuyers in the U.S. are first-time buyers, according to the U.S. Census Bureau.
- 31% of all homebuyers in the U.S. felt they made no compromises in the home they purchased, National Association of Realtors 2021 report. That means 69% likely made concessions when buying a home. The top-reported compromises were price, condition, and size of the home.
All this to say, there’s a lot to consider when engaging in the real estate market. It’s a huge financial and emotional commitment, so doing your due diligence is key to finding a great place to live and making a wise investment. Of course, homebuyers and sellers have the choice to go it alone, but here are five great reasons to go with a pro instead.
BENEFITS OF HIRING A REAL ESTATE AGENT
1. Guidance Through Complicated Process
A real estate transaction has a lot of moving parts. While most homebuyers and sellers will endure this process a handful of times, an experienced real estate agent may handle dozens of transactions – every year.
Did you know? Every 30 seconds, a RE/MAX agent helps someone find their perfect place.
Once you’ve found a home or a buyer, the buyer will submit an offer. When you’re sure that it’s a good deal (you are confident that it’s a good offer, right?), a contract will need to be drafted and signed by the buyer and seller. Remember, if it’s not in the contract, it doesn’t count. A real estate lawyer can help with this step of the process if needed. A benefit of working with an agent is that oftentimes they already have a lawyer that they work with regularly, ensuring all legal matters are handled correctly and in a timely fashion.
Furthermore, real estate agents abide by something called “fiduciary duty,” which means they are obligated to put their clients’ interests first. If you’re working with a real estate agent, you can rest assured that your agent is working to help you reach your real estate goals.
2. Market Knowledge And Comparables
Arguably the most important part of every real estate transaction is the price. For homebuyers, knowing the market value of a home will help you make a competitive offer and a wise investment decision. For sellers, nailing the right asking price from the get-go can mean the difference between a quick sale and a stale listing.
Your real estate agent will analyze comparable sales in tandem with their knowledge of current market fundamentals, such as housing supply and demand, mortgage rates and economic conditions. This will help you and your agent form a sound strategy.
3. Leverage Industry Connections
One indicator of a successful real estate agent is their connections – and a factor that also impacts your own success, as a homebuyer or seller. On the buying side, your agent will have the scoop on the latest listings, sometimes before they even officially hit the market. Once you’ve found “the one,” your agent can also recommend a mortgage professional, home inspector, real estate lawyer, even moving companies to help with the transition.
Now consider connections from a seller’s perspective. An experienced agent may have a pool of potential buyers for your property, along with access to a network of agents and their respective pools of buyers. And to toot our own horn here, you’d be hard-pressed to find someone who has never heard of “RE/MAX,” with 140,000 sales associates in more than 110 countries worldwide. (Toot, toot!)
4. Access To The Right Tools And Resources
Granted, this benefit depends on the agent you choose, and the brand they choose to affiliate with. But ultimately, every real estate agent’s objective is to help you buy or sell a home. In order to achieve this goal, your agent should have an arsenal of tech tools and resources. At least, they do if you’re dealing with a RE/MAX agent.
RE/MAX sales associates have comprehensive education, technology, and ongoing support available to them when they need it. RE/MAX affiliates are highly skilled and educated – in fact, RE/MAX leads the industry in professional designations, and they have the latest tools and technology at their fingertips, and they’re motivated to put this knowledge and experience to work for you.
5. The Bottom Line
According to a 2020 report by the National Association of REALTORS, For Sale By Owner (FSBO) transactions typically sell for less than agent-assisted transactions. FSBO homes sold at a median price of $217,900, significantly lower than the median agent-assisted sale price of $242,300.
Need we say more?
Of course, we all know there’s more to a home than the money. Whether you’re buying or selling, the transaction is often accompanied by a flood of emotions – excitement, anticipation, anxiety, uncertainty. Maybe you’ve decided to sell the first home you purchased, where you started your family. Perhaps you’re buying a home for investment purposes. Regardless of your reason, your agent has your back. It’s their job to keep a level head, even when yours feels like it’s spinning.
Public Relations and Content Manger
Lydia McNutt is an award-winning writer, editor, and public relations professional, with a focus on all thing’s real estate. At RE/MAX Canada, Lydia translates market data and trends into educational and entertaining content for homebuyers and sellers, while furthering the RE/MAX brand reach, nationally and globally.