Selling or acquiring real estate is a complex process that requires expertise and knowledge. For this reason, it’s crucial to surround yourself with the right professionals to ensure the success of your real estate project.
A real estate agent is a professional who guides you through the entire negotiation process, from start to finish, with the final step involving a notary. Their role in a real estate transaction includes estimating the property’s value, gathering all necessary documents, creating a marketing strategy, and promoting the property. This can be a lengthy and demanding process, which may feel overwhelming for those attempting to handle it on their own.
In this article, we will explore the pros and cons of working with a real estate agent.
The benefits of working with a real estate agent
1. Increased visibility for your property
Today, most people start their property search online. Real estate agents take advantage of this by listing properties on exclusive real estate websites, which attract 3 to 4 times more traffic than other platforms, significantly boosting your property’s visibility.
Additionally, many real estate agents leverage social media to target potential buyers. This has become an excellent marketing tool that can save you valuable time when selling a property.
2. Time savings and reduces sales delays
After a long workday, the last thing you want to do is spend your evenings and weekends posting ads, answering inquiries, and showing your home to potential buyers. By working with a real estate professional, you can leave all these tasks to them, allowing you to enjoy your free time while they manage the sale process.
Additionally, a real estate agent can tap into their extensive network, giving you access to a larger pool of potential buyers. This can help speed up the sale and ensure you get the best price for your property.
3. Expert negotiation skills
Negotiation is a routine part of real estate transactions. If the thought of haggling over the price of a property makes you uneasy, an experienced agent is your best ally to handle this for you!
In addition to their negotiation skills, real estate agents are well versed in the legal and financial aspects of the industry, helping you avoid costly mistakes. When a buyer makes an offer to purchase, you can choose to accept, reject, or counter the offer. Your agent will be the ideal person to guide you through this decision, using their expertise to negotiate a price that benefits both the buyer and the seller.
4. In-depth market knowledge
As experts in real estate, your agent will have an in-depth understanding of the market in your area. You can rely on them to set the right price for your property, helping you sell it quickly.
When purchasing a property, an agent can also guide you to the best neighbourhoods or warn you about areas to avoid, ensuring you make a well-informed decision. An experienced agent can accurately assess your needs and help you find exactly what you’re looking for.
5. Legal protection
We’ve all heard of stories where mistakes or scams happen during real estate transactions. One of the key roles of a real estate agent is to help you avoid such situations, especially when dealing with dishonest individuals.
By working with an agent certified by the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ), your transaction will be protected under the Real Estate Brokerage Act, which governs the profession. This organization establishes clear rules regarding brokerage contracts, so it’s important to verify that your agent is a member of the OACIQ before engaging in any transactions.
The disadvantages of working with a real estate agent
1. Paying a commission to the agent
One of the main disadvantages of working with a real estate agent is the financial cost, particularly the commission fee you’ll need to pay when the agent sells your property.
In Quebec, this commission typically ranges from 4% to 7% of the selling price. While this may seem like a significant expense, it’s important to remember that even if you sell your property on your own, you will still need to invest money to make your home stand out.
If the agent believes your property will sell quickly and without much difficulty, you may have an opportunity to negotiate the commission rate.
Don’t hesitate to discuss and negotiate the fee, as there’s no set standard. Meet with different real estate agents to compare rates and find one that aligns with your budget.
Why pay a commission?
First, it’s important to understand that in Quebec, the buyer does not pay a commission. The commission is typically shared between both the buyer’s and the seller’s agents.
This commission helps cover various costs for the real estate agents, including advertising, contributions to the OACIQ, office rental, insurance, and the time spent on research, property showings, and other tasks involved in the sale process.
2. Committing to a contract
When you choose to work with a real estate agent, you are committing to a brokerage contract that outlines the specific terms of your agreement. Some people may hesitate to sign this contract, fearing they won’t be able to sell their property quickly or that the relationship with the agent might not be a good fit.
However, it’s important to know that even if you’ve signed a brokerage contract, it’s always possible to reach an amicable agreement and end the relationship if you no longer wish to work with the agent.
3. Involving one more person
When buying or selling a property, there are already many parties involved, such as sellers, buyers, bankers, insurers, and inspectors. Adding a real estate agent to the mix may make the process feel more complicated.
However, in reality, working with an agent can actually help simplify things. They’ll handle many of the tasks, freeing up your time and ensuring the process runs more smoothly.
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