my friend is a real estate agent. Should I let them sell my home?

Question

what are the pros and cons of letting friends list your home?

Answer 1

Evaluate your friend on the same basis you would any other real estate agent, and require exactly the same things. Because they are your friend, you give them first shot at the business, but don't let them get away with anything you wouldn't let a stranger get away with.

And to the answerer who said "make them drop their commission to 1%": You get what you pay for. I'm a buyer's specialist and my clients are very happy when I sit across the table from those discount listing agents. It's not just a matter of hanging tough at the table, although they won't do that either. Paying a good listing agent 3% will net you more cash, more quickly, in the vast majority of cases.

Answer 2

If your friend is a good professional, hire him. If not take him out to the ball game but hire somebody else. The last thing you want to do is to give business to a friend or family member that cannot handle the job. Then you end up firing them. Be careful with that. But there is absolutly nothing wrong with it if the person can handle the job. just be open and discuss the matter before hand.

For those who advise you to ask for a commission cut... those are really ignorant people giving you dumb answers. Don't ask people to give you a part of their pay check unless you are prepared to turn over yours. A 1% cut out of a 3% co-broke commission amounts a 33% reduction in earnings. It would be very offensive to your friend.

The problem is that everyone sees an agent driving up in a car and they think that is all of their cost. What people don't see is that real estate companies also pay rent, electricity, salaries, telephone, insurance, and much more, just like any other businesses. Oh, by the way one full page advertisment on the paper on Sunday is $10,000 and there are 56 weeks a year. The average comapny takes about 6 to 12% profit after all expenses. For your information, I am a CFO and I have seen many financial statements including real estate companies.

Answer 3

First, when you would not have a written agreement from the primary lady, you have no responsibility to her. A agreement is handiest legitimate as soon as it's in writing, has been authorised (signed) and reputation has been communicated again to the offeror. This is likely one of the essential factors you wish to have a Realtor to aid you within the promoting method. It could look that you've critically underpriced your dwelling to have that many humans interested. Obviously, you would ship a agreement to the primary lady and comfortably cross from there however you are going to more often than not be getting much less for you condominium than it is valued at. The different alternative could be to do a Memo to Buyer (don't do five contracts as though multiple man or woman indicators, you're in enormous concern as all of the contracts could be legitimate and enforceable) to the entire interested events with an quantity that you're going to receive and take the primary one that incorporates a agreement that's acceptible. If you do that although, be forewarned that you simply would run each person off and come to be without a interested events in any respect. Last however no longer least, as already acknowledged, be certain all presents are observed through a pre-approval (no longer pre-qualification as there could also be a change) letter from a reliable lender (no web lending firms). That does not always guarantee you that they are going to be capable to get a mortgage however it's greater than not anything. In when you consider that any presents you get, do not be too fast to leap on the one that's the maximum. An present for much less cash however with a larger down fee would very good be a greater present. Remember, the extra they're financing, the larger the probabilities are that the mortgage would be denied. Obviously, a coins present is the nice you'll be able to get however in spite of that, be certain they furnish evidence of finances with their present.

Answer 4

Pro: May devote more time and attention to selling your home to clients versus an agent that does not know you.
Con: May not devote more time and attention to selling your home to clients because they know you.
Pro: Will give you the inside scoop on repairs that you will need to undergo to sell your home.
Con: You may get upset and experience ruffled feathers by their advice about repairs on your home because you have a vested interest in maintaining the friendship and do not want negative feedback.
Pro: Will still charge the regular commission amount (ethical).
Con: Will still charge the regular commission amount (bummer).

My recommendation, have your friend recommend an agent in their office to list your home and be your agent.

Answer 5

Depends. Is he professional?
When you hire a Realtor to sell your home, you do so because you have a job you need done, handled by an educated professional that you can trust to do the job right.
I have been a Realtor for several years and I know there have been times earlier on in my career when I felt extremely slighted by friends that did not hire me to find or list homes for them.
Your best bet is to be honest with your friend, tell them you are nervous about hiring them because you don't want there to be conflict within your relationship as friends. However, give them the opportunity to apply for the position of selling your home and being your Realtor. I can honestly say what hurt me, were friends that went behind my back and hired a stranger without ever giving me the opportunity to show them what I could do. It made me feel like they had no faith in my abilities to do my job and that they questioned my success in the career I had chosen for myself.
Tell your friend to present to you as if you were a total stranger, that you want to see how they are going to sell your home and at what price...they will respect you for the opportunity and probably try even harder than normal to get your business because they don't want to disappoint a friend!
I know every friend I ever did business with, I made it a point to ALWAYS work EXTRA hard because I wanted them to be proud and confident about the decision to mix business with friendship!

Answer 6

How good of a friend is this? If you trust your friend, then I would think it would be a logical choice. At least TALK to your friend about the situation. It's not fair to decide to hire another agent without first talking to your friend. Most agents give friends and family EXTRA time and attention. Unless you feel your friend is not a good agent or you don't trust him/her, hiring someone you know, can trust, and should be able to communicate with would be the logical choice. If you hire someone other than your friend, you are sure to damage the relationship.

Good Luck.

Answer 7

Kara C is right on, talk to your friend first and give them an opportunity to "apply" just like you should interview other real estate agents, then choose the best one for you.

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Answer 8

Do you trust this person? Is he/she good? If you don't think your friend is an unstable, incompetent person, if this person treats you with respect and wouldn't mislead you, if you are not going to be an ultra-sensitive seller, then yes you should use them.

I'm a Realtor and while I look out and work hard for all of my clients, I'd treat my friends professionally and be sure to do a great job.

Good luck selling!

Answer 9

Only if he drops his commission to 1%.

Answer 10

if they don't get the amount you are asking there will be strange feelings. also if something is wrong with your house and your friend sides with the buyer bad feelings