For people looking to enter the real estate market, a common question that arises is whether or not you need to hire a real estate agent. Real estate agents are professionals that know the ins and outs of the industry. But many don’t understand that law regarding hiring one. Can you legally sell or buy property without a real estate agent or realtor? We’ll answer the question and give you more information about it in this article.
Do You Legally Require A Real Estate Agent?
First off, we have to look at the subject from a legal point of view. While the National Association of Realtors has more than 1.5 million members, home buyers and sellers are not legally required to go with a real estate agent. However, you are advised to go with one as this individual has the knowledge to overcome many legal issues surrounding home buying and selling.
But this doesn’t apply to every US state. States such as New York and Massachusetts only permit real estate agents to initiate the buying and selling process. In addition to a few other actions, you will most likely have to hire a real estate agent if you’re looking to buy or sell property in New York and Massachusetts.
With all that said, let’s elaborate further on a point we made. A real estate agent has all the knowledge in the industry to make the buying and selling process go fast and smooth. So, here are a few reasons why you should always go with one.
4 Reasons To Always Hire A Real Estate Agent
Below we’ll give you a few reasons why the smart way is to hire a real estate agent. The other option is to go FSBO (for sale by owner), but only 8% of all homes bought are done this way.
When looking to sell your house, pricing is key. If you price your house improperly, then you’ll face all kinds of difficulties. From failing to attract buyers to losing money, the last thing you want is for the process to drag on for months.
So to avoid this issue, it’s best to go with a real estate agent. This is a professional that knows the market and can give you an accurate price estimate. This will eliminate all of the issues and get people to come over and check out your property.
Expertise In Buying And Selling
It’s certainly true that when going with an agent instead of FSBO, you are paying a commission fee. This can be anywhere between 3% and 5%. Some homeowners are hesitant to pay this fee, which is calculated based on the price of the home. But what you’re getting in return is so much more.
When hiring an agent to do the job, you are paying for their expertise in buying and selling. They are professionals who can negotiate for you. Since negotiations are one of the hardest parts of the job, they know how to fight to get the right price.
This is one advantage that real estate agents have over FSBO.
A real estate agent isn’t just a person that shows up and negotiates the final price; they offer a wide range of professional services. From taking photos of the property to marketing it and doing tons of research on how to sell and buy for the right price, they are hard-working individuals that fight to give you the best deal.
And what’s even more important is that these services come at no cost. All you do is pay the 3-5% commission fee when closing the deal and that’s it.
In modern business, entire enterprises exist solely by providing expert opinions and advice to other companies. When this industry is healthily flourishing and thriving, why wouldn’t you hire a real estate agent? After all, what you’re getting with a real estate agent is advice on all topics real estate-related.
Butt not just that, you’re also paying for their contacts and ways to utilize listing services. While you ultimately have the last say, a real estate agent will recommend the appropriate action. They will recommend what listing service to put the property, in a bid to sell faster. As a matter of fact, it works in their best interest to sell the property as fast as possible. So they won’t haggle over small, insignificant things.