Last Updated on March 9, 2021 by Filip Poutintsev
A real estate agent or brokers is a person whose business is to arrange the selling or renting of houses, land, offices or buildings for their owners. They are licensed to operate, negotiate and arrange sales under the supervision of a real estate broker.
Negotiating and arranging sales can mean showing the property, listing property fillings in contracts, listing agreements and purchase contracts and other duties.
Background of Real Estate Agent
The history of people selling land is reliant upon the nation where they carry out their dealings. In the United States of America, real estate brokers started displaying houses available to be purchased around 1900, and they have proceeded to today.
In nations like Australia, the act of real estate sales has been available, but only recently have real estate brokers come together to form common associations for home sales.
The first records for home deals in the United States starting around 1890 as an attempt to form a real estate association failed, yet it started a procedure so that by 1908, the National Association of Real Estate Exchanges was established to unite real estate agents to facilitate the selling of homes.
Despite the presence of the association, until 1919, anybody could consider themselves a ‘real estate agent’ without any professional certification or licensing. Obviously, the act of selling homes right now in this era is a questionable practice at best as brokers known as curbstones put numerous placards in front of homes attempting to contend leaving homeowners to just pick one from many choices.
Advantages and Disadvantages of Hiring Real Estate Agent
Around 93 percent of home deals include an agent somewhat according to the reports. Much of the time, hiring a real estate agent is obviously to the greatest advantage of the property holders. In others, it is not. It all depends on who you are deciding as your agent. As in all stages of home selling, it is important that you see all of your alternatives, just as the benefits and drawbacks of every, with regards to hiring-or not hiring a real estate agent.
Advantages of Hiring Real Estate Agent
1. Saves Time
When you hire a real estate agent to carry out the responsibility right, you are free to learn everything about purchasing and selling land properties. You spare heaps of time and effort when you work with an expert who has the correct training and experience to close a deal on a house or any real estate transactions for that matter. Not only is this time-effective, but it is also convenient.
2. Negotiation Skills
Not everyone has mastered the art of persuasion, and it is certainly no easy task to do the negotiation in selling home. Good real estate investors negotiate on your behalf, which makes closing on a deal on a property much easier. The real estate agent is fluent and objective in the way that they bypass the lowball offer and act straight to a reasonable offer as buyers know they aren’t dealing with an amateur negotiator.
3. Market Knowledge
No one will know your local market better than a certified real estate agent. Real estate agents will know the market trends, how to set suitable price points and the best roads for promoting your home’s availability. Even if they may not have solid information, they know where to find the information they need.
4. Finalizing the Contract and Paperwork
Investors hire a full-time real estate broker to finalize contracts and the required paperwork because they are familiar with the terms and conditions to ensure a legally binding contract. You are far less likely to have to worry about errors and negligence; if they do occur, a licensed real estate professional will have insurance to cover them limiting your risk.
5. Professional Networking
Agents usually have a connection with a lot of different professionals, a large portion of who offer types of assistance, that you would need to sell your home. Sometimes, agents hesitate to suggest a specific company or individual over another. But they have the information about the dealers who have a reputation for competence, mastery and competitive pricing. In this way, agents can give you references from different experts they have worked with to assist you with settling on an informed choice.
6. Multiple Listing Service
A multiple listing service ( MLS) is a database established by cooperating real estate brokers to provide data about properties for sale. MLS helps real estate agents connect by combining and sharing information with sharing commissions. Using a real estate agent allows you to take advantage of this MLS thereby increasing the exposure of your house.
Disadvantages of Hiring a Real Estate Agent
1. Divided Attention
If your real estate agents are quite busy with another client, your home may not get sufficient attention it requires. This can lead to a delay in the process or a less profitable deal. You need to be assured of having an agent that will do his or her due persistence at every stage of the selling process. The busier your agent is, the more likely you will experience the frustration of not having your calls returned in a timely manner, deadlines being missed and failed deals.
2. Hiring to Pay the Commission
Hiring an efficient and full-time real estate is expensive because you need to pay him/her a standard amount of commissions which may sometimes bite your pocket a bit. However, you can reduce the commission by hiring a discounted real estate agent, but you will most likely also have to do without some of the benefits described above.
3. Middlemen to Deal With
A real estate agent is simply a middleman between buyer and purchaser. In this way, aside from sitting back and waiting for his/her callbacks or messages, you need to try and trust that your agent shares your interests appropriately with the purchaser. Basically, if you want to work with your purchaser, removing the agent part is very engaging.
4. Mixed Timetables
Hiring a real estate agent means you have to mish-mash another person’s course of events with yours which might not always be adjustable. If your agent doesn’t give the vital time and effort, your home may sit available on the market longer than it needs to. On the other hand, if your agent is eager to unload your home for whatever reason, he may settle on choices that conflict with your objectives so as to sell it quicker.
5. Agents Credibility
Not every agent is a good agent. So it is basic you do your research before you enlist an agent. Look at certifications, experiences, recent deals, and so forth. The key is to enlist somebody who can amplify your investment’s benefit instead of transforming it into another weight on your shoulders.
The decision of hiring or not hiring a real estate agent is up to you. If you think you are experienced enough to do all the procedures by yourself and can devote your time and effort, then go for it.
Keep in mind, agents are commonly superb sales representatives, and they know how to sell themselves. By gathering as much information as you can on an agent, you at least limit the odds that you will be caught by a bad experience.
Obviously, you may eventually verify that you would prefer not to contact any agent at all. In such cases, there are different alternatives accessible to you, for example, selling your home on your own or selling it to a cash buyer.