Do you still need a real estate agent?

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do you still need a real estate agent

Whether we are buying or selling a real estate property, the one question that passes through our minds is, ‘Do we need real estate agents?’ Even though these agents come with a lot of professional knowledge and experience, are they a must. Or, can we purchase or sell a property without the involvement of a real estate agent completely? The answer is simple – you can buy/sell a property without employing the services of a real estate agent. However, before you make that decision, ensure that you take a quick look at the pros and cons of having a real estate agent by your side.

Also Read: Tips to buy or rent commercial property in Dubai

Buyers

Let’s look at the advantages and disadvantages of a real estate agent if you are looking to buy a property in the UAE:

Advantages

  • A real estate agent ensures that you get a wider and much diverse selection of properties to choose from than if you were looking yourself. You can talk to the agent and tell him exactly what you need. The agent ensures that he directs you only to those properties that meet your requirements. Also, if you approach a developer, then you cannot expect him to tell you about the properties of his competitors even if they have better facilities or suit your requirements better.
  • An experienced agent has an idea about the history of the property that you intend to buy. Also, he can warn you about possible costs in the near future.
  • Many buyers are not aware of the exact documentation required to purchase a property in the UAE. This is where a real estate agent can be really helpful. He can also brief you about the regulations surrounding property purchase in the region. This reduces delays and overall costs.
  • A good agent helps you save a lot of time since you don’t have to go around researching neighborhoods and finding suitable houses.
  • Real estate agents can also help save you from paying more for a property than what it is worth. It is important to establish a relationship of trust with the agent so that he works in your benefit.
  • An agent can help ensure that all communication between the buyer and the seller is neutral and to the point. This makes it easier to close the deal.

Also Read: What luxury buyers are looking for in homes?

Disadvantages

  • As a buyer, if you are employing the services of a real estate agent, then you will have to pay him a commission. While this can vary, usually, it is around 10 percent over and above the purchase price and needs to be paid in cash.
  • Sometimes a real estate agent can pressurize the buyer into buying a property because the seller offers the agent a good commission. On the other hand, as a buyer, if you distrust the agent, then you might let go of a good opportunity assuming that he is looking out for the seller and not you. In either case, trust plays a major role.
  • Since most communication happens through the agent, there are chances of incomplete transmission of information or erroneous information shared by the agent.
  • If you are desperately looking to buy a property and the agent senses it, then he might try and take advantage of the situation.

SELLERS

Let’s look at the advantages and disadvantages of a real estate agent if you are looking to sell a property in the UAE:

Advantages

  • As a seller, if you employ the services of a real estate agent, then your property will get introduced to a far greater audience than you trying to sell it on your own. While the internet seems like a place where you can sell anything, buyers tend to turn to real estate agents before anything else. Therefore, listing your property with an estate agent can ensure a faster turnaround.
  • Unless you stay at home or work from home, meeting prospective buyers and showing them your property can be a time-consuming task. An agent ensures that he takes care of all these activities while you are at work.
  • As a seller, you might not be aware of all the regulations and paperwork that is required to sell your property in the UAE. A real estate agent gets this done quickly and more efficiently.
  • A good agent can help you get the right price for your property and also highlight any hidden costs that you must take into consideration.

Disadvantages

  • Earlier, buyers and seller would pay 5 percent commission each to the real estate agent. However, nowadays, the entire 10 percent is paid by the buyer and the seller gets the agent’s services for free. Ensure that you reach an agreement with the buyer before finalizing the deal.
  • Since you give a price range to the agent, you have less flexibility in price.
  • Usually, many sellers believe that without an agent, they have more bargaining power. They can stage the home and pick up on the prospective buyer’s emotions and relate them to their own emotional experiences. For an agent, a sale is simply a business contract.
  • Without an agent, you can liaise directly with the buyer and ensure that you look into your interests optimally. If a real estate agent is involved, then all he would focus on will be getting his commission as soon as possible.

Before making up your mind regarding employing the services of a real estate agent or not, ensure that you consider these pros and cons and make an informed decision.

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