The pros and cons of working with a real estate agent
Last update : 2022-10-11 11:17:20
Selling or acquiring real estate is a complex operation that requires experience and knowledge. For this reason, it is essential to surround yourself with the right people for a successful real estate project.
A real estate agent is a professional who accompanies you throughout the negotiation process, up until the conclusion of the sale which is completed with the help of a notary. In the case of a real estate transaction, their role will be to estimate the value of the property, gather all the necessary documents, work on the marketing strategy and promote your property. This can turn out to be a long and tedious process that may be quite daunting for those who choose to do it themselves.
However, there are pros and cons to working with a real estate agent, which is what we will be covering in this article!
The benefits of working with a real estate agent
He offers a greater visibility for your property
Today, anyone who wishes to acquire a property begins the research by consulting the Internet. In that sense, real estate agents publish their house for sells ads on exclusives real estate websites. These platforms have 3 to 4 more visits than any other site, which makes a real difference in terms of visibility.
Also, many real estate agents use social media to target potential buyers. It has become a very good promotional tool that can save you precious time when selling a property.
He's able to save you time and reduces sales delays
After working all day, you won’t want to spend your evenings and weekends posting ads, answering inquiries, and showing you house to potential buyers. By working with a real estate professional who will take care of all the tasks related to the sale of your property, your mind can be at peace while enjoying your free time.
He will also be able to use his large network to access greater number of potential buyers. In doing so, he will be able to sell you property quickly and at the best price.
A real estate agent is used to negotiating
In the field of real estate, negotiating is commonplace. Therefore, if the idea of bargaining the price of a property gives you cold sweats, contact an experienced broker so that they can do the work for you! In addition to all that, they are also extensively familiar with the legal and financial aspects of the field of real estate and will certainly help you avoid making any mistakes. When a buyer makes you an offer to purchase at a given price, you are free to accept, refuse or make a counteroffer.
Your real estate broker is the best person to help you make a decision. He will, without a doubt will be able to negotiate a price that will suit both the buyer and the seller.
He possesses a good knowledge of the market
As experts in the field of real estate, your agent will have a very good knowledge of the market in you residential area. In that sense, you can trust him to establish the right price that will allow you to sell your house as soon as possible.
When you are looking to purchase a property, he can advise you on recommended areas or places you should avoid so that you don’t end up regretting your purchase. An experienced agent is able to pinpoint your needs precisely in order to find exactly what you are looking for.
He offers you legal protections
Who hasn’t heard of a story where mistakes or scams occurred during a real estate transaction? The role of a real estate agent is also to help you avoid unfortunate situations when faced with ill-intended individuals.
With the help of an agent that is certified by the Quebec Organization for the Self-Regulation of Real Estate Brokerage (OACIQ), your transaction will be protected by the Real Estate Brokerage Act that governs this profession. This organization provides very clear rules regarding brokerage contracts, so be sure to check that your real estate agent is a member of the OACIQ before doing business with him.
Other provinces have different rules, so here are the equivalent organizations in other parts of Canada:
- Ontario: Real Estate Council of Ontario
- Alberta: Real Estate Council of Alberta
- Saskatchewan: Saskatchewan Real Estate Commission
- British Columbia: Real Estate Council of British Columbia
- Nova Scotia: Nova Scotia Real Estate Commission
The disadvantages of working with a real estate agent
Paying a commission to the agent
In many cases, the biggest disadvantage of using an agent is purely financial. This is due to the fact that you will have to pay a commission to your agent when he sells your property. In Quebec, this commission varies between 4% and 7% of the value of the selling price. In Ontario, this percentage generally amounts to 5% of the final sale price, whereas in British Columbia, it typically reaches about 7%. It might seem like a lot of money, but remember that even if you sell your home by yourself, an investment will be necessary to make your property stand out.
If the broker feels that he will not have too much trouble selling your property, you might have a better chance of negotiating his commission.
However, you should never hesitate to negotiate this rate since there is no specific rule. Meet with different real estate brokers to compare and find a rate that works for your budget.
Why pay a comission ?
Firstly, you need to know that in Québec the buyer pays no commission. The commission will be shared between both agents (that of the buyer and the seller). The commission will allow the real estate agents to cover advertising, contribution to the OACIQ, the rental of an office, insurance, the time invested in research and visits, etc.
Committing to a contract
By agreeing to work with an agent, you are signing a brokerage contract that defines the exact terms of your agreement. However, some people may be reluctant to work with a resl estate agent for fear of not be able to sell their property quickly or having a bad realtion ship with the broker.
Note that even if you have signed a brokerage contract with a real estate agent, an amicable settlement is always possible if you no longer with to work with them.
Involving one more person
When buying or selling a property, there are several people involved in the process. Sellers, buyers, bankers, insurers, inspectors… Working with a real estate agent adds another person to the equation. You might think the whole ordeal will be complicated.
In reality, working with an agent will allow you to free up some time and make the process go more smoothly.
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