Do You Really Need a Real Estate Agent When Buying or Selling a Home?

The quick answer: No, you don’t have to use a real estate agent. Plenty of people choose to go solo every year, leveraging the internet to search for homes, assess property values, and even negotiate deals on their own. However, despite having so much information available, 89% of buyers and sellers still decide to work with a professional, according to a report by the National Association of Realtors (NAR).

Given the recent spotlight on changes within the real estate industry (you can link to your relevant blog post here), it’s worth revisiting the fundamentals: What’s the difference between a buyer’s agent and a seller’s agent, and how can each of them support you throughout a real estate transaction?

The Role of a Buyer’s Agent

While platforms like Zillow make it easy to browse listings and even get notifications about open houses, a buyer’s agent offers more than just access to information. They serve as your dedicated guide through the home-buying process, always prioritizing your needs and interests.

Realtor.com lists 111 tasks that buyer’s agents typically handle, but here are the key highlights:

Finding Your Ideal Home

Browsing online can be helpful, but can you always tell when a house is priced to sell or when it might be hiding costly issues? According to the 2023 Profile of Home Buyers and Sellers, 89% of buyers used an agent, with half of them valuing the help in finding the right property the most. Your agent leverages their deep knowledge of the local market to pinpoint properties that match your criteria, organizes showings, and provides valuable insights to help you make informed decisions.

Negotiating Price and Terms

Think you can negotiate a better deal on your own? It’s possible, but without an agent, you might miss out on nuanced negotiation strategies that can save you money. Negotiations can occur at multiple stages—when making an offer, after inspections, and following appraisals. The NAR report emphasizes that agents are crucial in securing favorable contract terms and navigating the complexities of the sale. A skilled buyer’s agent knows how to enhance your deal in ways you might not have considered, such as securing necessary repairs or persuading the seller to cover closing costs.

Navigating the Paperwork

The paperwork involved in buying a home can be overwhelming. This is where a buyer’s agent becomes invaluable, as 90% of buyers found their agent to be a crucial source of information and guidance throughout the process, ensuring every detail is correctly handled.

The Role of a Seller’s Agent

On the flip side, a seller’s agent, also known as a listing agent, is focused on helping you sell your property quickly and for the best possible price. They manage everything from marketing your home to negotiating with potential buyers and handling the sale logistics.

Here’s a breakdown of what a seller’s agent typically does:

Setting the Right Price

Pricing your home accurately is part science, part art. Overprice it, and you might scare off buyers; underprice it, and you risk leaving money on the table. The right price not only attracts serious buyers but also maximizes your profit. Even in recent years, when homes were selling quickly, For Sale By Owner (FSBO) properties sold for much less than those listed by agents. In 2022, FSBO homes had a median sale price of $310,000, while agent-assisted homes sold for a median of $405,000, according to NAR. A seller’s agent combines data, experience, and market insight to strategically price your home—something an online tool simply can’t match.

Marketing the Property

A seller’s agent doesn’t just put up a sign in your yard; they craft a comprehensive marketing strategy to attract serious buyers. This can include professional photos, videos, a social media plan, open houses, and even staging your home to enhance its appeal.

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Handling Offers and Negotiations

Handling offers and counteroffers can be daunting, especially when buyers start playing hardball. This is where a seller’s agent shines, managing the negotiations so that you don’t feel pressured to accept unfavorable terms. According to NAR, 87% of sellers would recommend their agent’s services in the future, which speaks to the value they provide. Beyond getting an offer accepted, a seller’s agent also coordinates the entire sale process, from inspections to appraisals, ensuring a smooth journey to the closing table.

Final Thoughts

While it might seem like a good idea to save on commissions by not using an agent, buying or selling a home involves high stakes. A knowledgeable real estate agent isn’t just another cost; they offer expertise and market insight that can save you time, stress, and ultimately, money. And that’s an investment that can truly make a difference in your real estate experience.