Real Estate Agents - Wasted Money or Necessity?
When it comes to the work of real estate agents, it seems like the pro group and the against group can never agree on the need of them. The first group thinks they are a necessity and the second one think it's an absolute waste of time and money. So, do you really need real estate agents? Here's a short list of pros and cons about some of the most arguable topics.
Are agents wasting or gaining money?
People who are about to sell their property tend to make as much profit as possible. No one thinks about selling their house for the lowest possible price. When you hire an agent, you agree on a fixed percentage, usually 3%, from the sale you make. Meaning, if you sell the house for $100.000, the agent will get $3.000.
Now, some people think that this is $3.000 thrown in the air, and some think it's money well spend. The truth is somewhere in between. If you're selling a house that you already live in and you don't really need money fast, then you don't have to hire an agent. If you need the money fast and you live somewhere else, then it's better to hire an agent. Going to work and having other obligations during the day will give you a lot of trouble getting everywhere. Spending 3% on an agent will actually save you more.
Who bargains better?
Some folks have a special talent for bargaining. The problem is that you're probably not one of those folks unless you worked some time on a street market in Marrakesh. On the other hand, agents are professionals and they know how to do this. Buyers will ask for the lowest price but it's the agents' job to create a price that will be best for all parties.
Don't forget that it's agents' interest to sell the property for a higher price. This way they get more provision, and at the same time, you profit more. It's a win-win situation in this case and you should always let the professionals get the best price. Agents know how the market works, they know how much a particular property is worth and which people in their contact list will love your property.
Selling fast or selling rich?
You can't have both. Agents usually tend to get the best price because it's in their interest too. If you need the property sold fast, don't get agent's help. People selling online usually sell their stuff faster than through an agency. Of course, be ready to sell the place for a much lower price than you'd like to. That's why the subtitle says fast or rich, you can't have both.
Getting the right advice
Do you really need an agent? When it comes to advising, yes. Agents know what you should do to raise the value of the property just by walking inside of it. Small investments, tearing down some walls and placing them on other places, and other small but very important things. An advice from a professional means a lot. Bottom line, do you really need an agent - probably yes, you do.