Advantages of using a Real Estate Agent

Real Estate Agent and Clients

It’s official: having a real estate agent help you sell or buy a house offers numerous advantages. This opinion doesn’t stem from books extolling the 101 virtues of real estate agents, but from the experience of our sister and a range of other friends and colleagues who spoke highly of the agents they hired.

Our sister lived in Washington, DC, but was preparing to move with her family to Florida. They had bought a fixer-upper nearly 15 years ago in a prime DC neighborhood for about $200,000. The renovations cost another $100,000. Fifteen years later, a real estate agent sold it for $850,000. They knew prices had gone up based on the ads they had seen for similar properties in the area, but they had no idea how to price and market their home.

One of their friends recommended a real estate agent. Our sister was impressed. The agent quickly toured the house, crunched some numbers, and five minutes later, looked them straight in the eye. “I can sell this house for $850,000, but there’s just one problem.”

Our sister asked, “What’s the problem?”

The real estate agent looked up at the ceiling. “That’s the problem. Your lighting is awful. Those chandeliers belong in the junkyard. Change your lamps, shades, and fluorescents, and then call me once you’ve replaced them.”

To make a long story short, our sister and her husband did change the lighting, and their house sold in three weeks. In fact, only three prospective buyers visited, and the agent managed to close the deal with the second one. There were multiple calls from other interested parties, but after checking, the real estate agent knew that the second visitor was the best option. Her advice: close the deal now or you’ll have to wait another two weeks for another good prospect.

That’s not the whole story. Our sister told us how the real estate agent got to work on marketing the house to the public. Her efforts were well worth the 8% commission fee. Our sister showed us the photographs the agent had taken of the house, carefully choosing angles and shots that would attract the most buyers. The photographs looked professionally done; of course, the chandeliers were not featured.

“The chandeliers will be the WOW factor when buyers actually visit,” she said. “Don’t worry. Now that your chandeliers don’t look like ancient lightning rods, they’ll help clinch the deal.”

The closing and finalization of the deal went like clockwork and was virtually hassle-free. Our sister was so pleased that she treated the friend who recommended the real estate agent to a swanky restaurant and presented her with a bottle of champagne.

Real Estate Agents Know Their Business

You might also be lucky enough to meet the right real estate agent for your needs. The key is to engage agents who know what they’re doing and are confident in their abilities. When you ask a question, you want a definitive answer, not “Er… let’s see… my guess is that…”

We’re talking about your house, probably the largest single asset you own, and the sale of which will help cushion your retirement. Who’s the best person to ensure you get your money’s worth or that your house—filled with memories of the past—goes to the right owner who will care for it lovingly?

So, what are the advantages of using a real estate agent?

  • You save time: Instead of handling all the details yourself, a good real estate agent will manage your property and show it to prospective buyers. Once you’ve agreed on the terms of their service, you can take a hands-off approach. Let the agent do the work and avoid interfering. Don’t be present during showings, nor should you answer questions from interested parties. Once you hire a real estate agent, your job is simply to get OUT of the premises.
  • Expertise: An experienced real estate agent is backed by a wealth of knowledge about the housing market. Agents live and breathe houses every day. They start their day showing homes and might close deals on three or four properties by the end of the day. The knowledge they gain from being at the “heart of the action” makes them well-equipped to know the do’s and don’ts like the back of their hand. Serious real estate agents also continuously upgrade their skills, attending seminars and briefing sessions. They read up on the latest trends and constantly expand their knowledge. Additionally, they have a gut instinct for whether a house is priced too low or too high compared to the market.
  • Access: This refers to a real estate agent’s broad network of contacts. When you hire a real estate agent to help you buy or sell a house, you gain access to their professional connections. They know where to go for information and how to use that information to your advantage. Many real estate agents are members of professional clubs, granting them access to valuable resources. By hiring one, you’re essentially buying into that agent’s sphere of influence.
  • MLS: The Multiple Listing Service (MLS) is a database that only seasoned agents can navigate and interpret effectively. Yes, the MLS is available to the public for a nominal fee, but why pay the annual fee when your real estate agent likely reads it every day? The MLS is perhaps the greatest source of real estate opportunities in any given area. There were 111 MLS systems across Canada in 1991, and that number has likely doubled in the last decade. That year alone, the MLS processed 301,000 residential sales valued at over $45 billion (Weiss, 1992). Who better to help you understand how it works and how to capitalize on it?
  • Free advice: When you meet a real estate agent and feel comfortable with them, listen carefully to their advice. It’s free and can prove invaluable, as in the case of our sister’s agent. If the agent suggests your house has too much clutter and needs to be cleared so prospective buyers can better visualize the space, don’t be offended. They’re working with you, not against you. If the agent says the wall colors create eye fatigue, they’re speaking from experience and feedback from buyers and sellers.

One lesson stands out in this whole discussion about the advantages of using a real estate agent: you can argue with the taxman until you’re blue in the face, but don’t argue too much with a real estate agent. Otherwise, your house may stay on the market for far too long. As the saying goes, properties that linger on the market too long start to raise suspicions, with buyers imagining all sorts of issues that may keep them away.

Also, when considering the advantages of using a real estate agent, here’s an essential tip: always check out your real estate agent’s credentials. A certification, license, or specialized training are critical. But the best teacher of all is experience.

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