5 Reasons to Hire a Real Estate Agent

When you're ready to buy or sell a home, a real estate agent is an essential resource. While buyers and sellers aren't strictly required to work with real estate professionals, they bring a lot to the table to make the whole process easier (and potentially save you money). From negotiation techniques to pocket property listings (also called private home sales), we'll explore five benefits of using a real estate agent during any home transaction.

What Do Real Estate Agents Do?

A Note on the Origins of Real Estate Agents

People have often asked, "Do I need a real estate agent?" The role of real estate agents has come a long way since the job came about in the late 1800s. At that time, agents were responsible for mediating and negotiating deals between buyers and sellers, but not much else. As the property market has grown, real estate pros have become essential in guiding clients through complex purchases. Today, the primary goal of real estate agents is to facilitate smoother transactions from beginning to end for all parties involved.

5 Benefits of Using a Real Estate Agent

Let's dive into the reasons you may want to hire a pro to help with your next real estate transaction — whether you're buying or selling. Why hire a real estate agent? Here are five reasons:

1. Market Knowledge

If you're wondering, "Do I need a real estate agent?" simply look at the recent condition of the real estate market to understand why the answer is yes. The real estate market has changed a lot, especially in the last 20 years. It’s been marked by fluctuating interest rates, fast-shifting demand, and evolving buyer preferences. It can be daunting for someone new to real estate — but luckily, experienced agents and Realtors have a deep understanding of these dynamics. An agent will be able to help you navigate even the most unpredictable environment. They do this by keeping an eye on local and national trends so they can advise you on when it's a good time to buy or sell. Agents also make sure you make well-informed decisions and try to help you mitigate risk with your purchases.

Pro tip: How to pay off your mortgage early.

2. Local Knowledge

Moving to a new area comes with plenty of challenges, but a local agent can help ease the transition by sharing insights about the community. Your agent is likely an expert in more than simply the available homes in the area; they're also knowledgeable about neighborhoods, school districts, safety, and local amenities like dining and leisure. They'll help you identify an area that fits your lifestyle and needs. That could be a busy downtown neighborhood or a quiet, family-friendly suburb. With a real estate agent's local knowledge, you can feel confident and informed as you choose a new home.

Should you buy an old house or new house? Your agent may be able to help you decide.

3. Transaction Process and Negotiation Expertise

Still wondering, "Why hire a realtor or agent?" Real estate transactions can be overwhelming, especially if you're unfamiliar with the process. A skilled real estate agent will guide you through every step, ensuring nothing is overlooked and protecting your interests. They handle the complex paperwork, communicate with other involved parties, and help you meet critical deadlines. Here are a few of the most important steps where an agent can provide you with important guidance:

• Initial Consultation: Your agent will get an idea of your needs, budget, and preferences to tailor your search.
• Property Search and Viewings: An agent will organize and guide you on tours of properties.
• Offers and Negotiations: They'll help you craft a competitive offer, negotiate terms, and manage counteroffers.
• Inspections and Appraisals: They'll work on coordinating assessments to ensure the property's condition and value meet your expectations and loan requirements. (You can use our home inspection checklist to tag along.)
• Closing: Your agent will guide you through all legal paperwork to ensure accurate transaction records and facilitate the handover of the property. (For more info on this, check out our blog on closing costs for first-time home buyers.)

With a real estate agent by your side, you can navigate these steps with greater confidence and ease.

4. Extensive Network of Local Connections

The professional network between real estate agents is a great asset, benefiting buyers and sellers alike. Agents collaborate with other real estate pros and experts across many industries — like home inspectors, contractors, and legal experts — to help you along the way. Their network of local connections helps ensure that every facet of the buying or selling process is handled by a skilled professional.

An agent's connections can be crucial for sellers in prepping for a property sale. They can help you find reliable contractors who can add curb appeal and make quick repairs as well as staging experts to help jazz up the home for showings. For buyers, the support system your agent has cultivated can help streamline financing, inspections, and move-in.

5. Reduced Stress for Buyers and Sellers

Buying or selling a home can be one of life's most stressful experiences. Working with a real estate agent can greatly reduce this stress. These professionals handle the details of the transaction process, from listing and marketing a home to managing the intricate steps of negotiation and closing. This allows you to focus more on the big picture and less on the day-to-day uncertainties of the transaction.

Real estate agents understand the emotional and financial pressures associated with home transactions and strive to make the experience as smooth and stress-free as possible. They can anticipate problems before they arise, offer solutions, and keep you informed throughout the process, alleviating much of the anxiety that comes with buying or selling a home.

Whether you're buying or selling, a real estate agent may suggest a home warranty. If you're selling, a real estate home warranty covers you for the entire listing period — helping to avoid delays by covering breakdowns of covered appliances or systems right away. If you're buying, a buyer’s home warranty can bring you peace of mind in your first months or years as a homeowner, when you're still saving up for big expenses. This added layer of protection is just another way that working with a real estate agent can provide long-term value and comfort during and after the sale.

How to Pick a Real Estate Agent and Other FAQs

1. Do buyers’ and sellers’ agents do the same thing?

Buyers' and sellers' agents both facilitate real estate transactions but focus on different aspects: buyers' agents help clients find and purchase homes, while sellers' agents assist in marketing and selling properties.

2. How much do I pay a real estate agent?

Typically, you don't pay a real estate agent directly; instead, they receive a commission, usually about 5% to 6% of the sale price, which is split between the buyer’s and seller’s agents at closing. (This process may change due to the National Association of Realtors settlement.)

3. How to find a real estate agent.

You can find a real estate agent by asking for referrals from friends and family, researching online reviews, or attending open houses to meet agents in action.

4. How much money can a real estate agent make me?

A skilled real estate agent can potentially increase your earnings from a sale through effective pricing, marketing, and negotiation, which may be even more than the cost of their commission.

The contents of this article are provided for general guidance only. First American Home Warranty does not assume any responsibility for losses or damages as a result of using this information.