Many real estate investors manage their business themselves. However, some investors prefer the help of real estate agents. Beginner real estate investors think that to find a real estate agent will be of great help for the growth of their business. But do you really need to find a real estate agent when it comes to selling an investment property? Find out in the text below.
#1 Who Is a Real Estate Agent?
We need to start by explaining what a real estate agent stands for. Real estate agents are also known as real estate experts who are legally licensed to represent either a seller or a buyer and in some cases both parties. They are the consultants who have taken courses in real estate investing. A great benefit of hiring an agent is that they have knowledge and experience of how to react in both real estate market situations- a buyer’s market as well as a seller’s market. Moreover, they are here to help the real estate investors to sell investment property and/or to buy the best ones. Real estate agents typically have a huge database available and are well-prepared to answer all of your questions.
#2 Types of Real Estate Agents
Another thing that you should know is that there are many different types of real estate experts. This depends on the agent’s level of experience, the specialty as well as the license they are in possession of. To illustrate, there are realtors, brokers, selling agents, buying agents and dual agents.
However, the topic of this blog regards selling rental property. Therefore, it is only logical to put the main focus on selling agents. As the name suggests, this type of real estate agent provides the client with real estate investing tips on how to sell investment property. There are also additional responsibilities the selling agent needs to handle:
- Selling agents need to conduct real estate market analysis to compare different property prices in order to establish the selling price. Sure enough, you can do this yourself, especially with the help of different tools such as the investment property calculator, for instance.
- Experts need to always be up to date about the local housing market in order to sell investment property at the best possible price and help you generate the highest profit. Of course, the higher the selling price, the higher the commission that the agent gets.
#3 How to Find a Real Estate Agent
The real estate agent can be a great helper when you want to sell investment property. But where can you find a real estate agent? It is not only a matter of where to find a real estate agent but rather, to find the best one. It is, therefore, advisable that you do some research and read different opinions. Additionally, before you find a real estate agent to work with, make sure that you have the same vision of the local housing market and the way you see your business’ progress.
#4 What Are the Advantages of Real Estate Agents?
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Save Time
When you hire an agent, you pass all the job to him/her. You do not need to spend hours conducting real estate market analysis as well as predictive analysis to be able to sell investment property at a good price. It is already your agent’s job to know the condition of the market- buyer’s market or seller’s market and act accordingly. Of course, it is better to sell a property in the state of a seller’s market. However, if you are in a hurry and the market favors the buyers, it is your agent’s job to give you the best idea of how to handle the situation.
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Process of Negotiation
Negotiating is seen as a type of art and it is not an easy task to master such a skill. That is why it is better to hire a professional who has the experience in the negotiating process. Moreover, this way less stress and struggle falls on your shoulders. Another thing is that real estate agents have the in-depth knowledge about the real estate metrics of a property, which helps them to quickly estimate the profitability. Consequently, an agent is more likely to be able to come up with a better deal.
#5 What Are the Disadvantages of Real Estate Experts?
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Commission Fee
Hiring a professional real estate expert is not cheap, particularly if he/she is an experienced agent. Typically, 6% of the total sale price is what an investor pays to his/her agent. So, the downside is that even if you do not make any profit you still need to pay the real estate agent.
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Selection
You should pay close attention when hiring an agent. If the real estate agent is not well prepared or does not have enough experience, he/she may not collect enough information and could conduct predictive analysis poorly. This, surely, will influence the profit you get from the sale. It might be the case that instead of making a profit from selling rental property, you end up losing money.
#6 Do You Need to Find a Real Estate Agent to Sell Investment Property?
For every investor, hiring an agent is not a cheap service. Consulting with real estate experts typically costs a lot due to the high commission fees. However, if you know how to conduct a real estate market analysis, you have the knowledge about real estate metrics and you know how to make use of the data, then you do not need a middleman. There are tools, such as the investment property calculator that you can use to guide you through the process.
However, if you are a beginner real estate investor or you are not experienced in selling properties, you might find a real estate agent very useful. If your property is not in a hot seller’s market, you should find a real estate agent to increase your profits and proceed with selling your property faster. However, the end decision is yours.
Are you interested in learning more about how to find a real estate agent for selling a property? Maybe you want to know how to tackle the process on your own? Mashvisor can help you by offering useful tips and guides for every real estate situation.
To learn more about how we will help you make faster and smarter real estate investment decisions, click here.