Once the word gets out that you’re in the market for a new home, you may get several offers of assistance from well-intentioned friends and family – who happen to be real estate agents. How can you select the right agent from a talent pool so close to the heart? Should you use an agent that has a close relationship to you?
“While it might sound like a great idea to work with someone you already know and trust, real estate transactions rarely go smoothly in the best of situations,” according to daveramsey.com. Taking a stress-prone endeavor and throwing family or friends into the mix may easily spell disaster. Or, having a good friend there to guide you may actually lighten your anxiety and ease stress. Who’s to tell?
Here are some considerations to mull over before you take up Aunt Helen on her offer to be your agent:
• Your friend or family member may not be an expert. They may be new to the industry or area; they may be lacking the network to be as competitive as you need them to be. You need an experienced realtor who is familiar with the market conditions and properties in your areas of interest.
• What is private to you now, will no longer be. “When it comes to finding the right house or selling your current place, a lot of personal details come up,” states daveramsey.com. Your personal finances, credit, employment details, and much more will need to be shared with your agent. Are these things you want your friend or relative having access to, or god forbid – accidentally sharing with others?
• A biased perspective is unavoidable. You may be thinking that a little bias works in your favor; it’s good to have someone “on your side”, right? Well, maybe. “You want a real estate agent who will fight for your best interest from start to finish, but you also want someone who isn’t afraid to tell you the truth—even if it’s hard to hear”, according to daveramsey.com. Honesty is critical to a successful real estate transaction. An objective professional has the room to focus on selling your home or helping you purchase a home at the best price possible. They don’t have to focus as much on “your feelings”.
• If things go wrong, they can go really wrong. The home buying process is inherently tense. Stress, emotion, and the inevitable hiccups that can come with the territory create fertile soil for relationship break-ups. For example, what if you’re unhappy with your agent’s performance? For some, terminating business relationships also led to the end of personal ones. "We let her go, and she has never spoken to us again," commented Dereatha R. on realtor.com, when speaking of her real estate agent cousin.
Although there are certainly cases in which working with real estate agent friends or relatives turned out just fine, take time to really think it through. Buying or selling a house is one the biggest financial decisions you’ll make. It’s important to be guided by solid advice from a professional – and you may not get that from a friend or family member’s opinion.
Sources: daveramsey.com; realtor.com; bankofamerica.com
Photo credit: freepik.com
