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The Pros and Cons of Using a Friend or Relative in Real Estate to Buy a Home

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When buying or selling a home, using the skilled services of an experienced real estate agent is often preferred. A Realtor may have profound knowledge of the local market, excellent negotiation skills, and other benefits that can serve you well throughout the transaction. Many people are friends with agents, and others may have a close relative in the area who has a real estate license. As you begin selecting a real estate agent to hire for assistance with your upcoming transaction, you may be wondering if you should hire a friend or family member to help you. This is a slippery slope that should be closely analyzed before you make a final decision about who to hire for assistance with your buying or selling plans. Because each situation is unique, you will need to carefully analyze the relationship before deciding how to proceed.

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The Pros and Cons of Using a Friend or Relative in Real Estate to Buy a Home

  1. 1. The Pros And Cons Of Using A Friend Or Relative In Real Estate To Buy A Home
  2. 2. When buying or selling a home, using the skilled services of an experienced real estate agent is often preferred. Many people are friends with agents, and others may have a close relative in the area who has a real estate license.
  3. 3. As you begin selecting a real estate agent to hire for assistance with your upcoming transaction, you may be wondering if you should hire a friend or family member to help you. This is a slippery slope that should be closely analyzed before you make a final decision about who to hire for assistance with your buying or selling plans.
  4. 4. Placing Your Relationship At Risk Consider that your friend or family member may be personally insulted if you do not choose to use his or her services for your transaction. In some cases, you may be well aware that the individual is in dire need of the money that your transaction could provide to him or her. Because of this, you may be more inclined to give this individual your business. In some cases, an issue between two family members creates a larger rift within the family unit.
  5. 5. The Financial Benefits To Both Parties Your real estate agent friend or family member may receive approximately three percent of the financial value of the transaction at closing, but there is some variation to this. Your agent will have business expenses that must be paid out of these funds, such as marketing and broker fees. However, in some cases, a friend or family member who is also a real estate agent may gift at least some of the proceeds back to you or may agree to work at a discounted rate to save you money. In this case, the transaction can be financially beneficial to both of you.
  6. 6. The Ability To Find The Right Neighborhood And Home Many real estate agents choose to focus their time and energy on a select few neighborhoods or to appeal to a certain type of buyer. Your real estate agent friend may be outside of his or her comfort zone with your transaction. This does not mean that he or she cannot assist with the process, but you may enjoy better results in some cases when you choose to work with an agent who is more experienced with your type of transaction.
  7. 7. The Stress Associated With A Real Estate Transaction Real estate transactions can be tense and stressful situations. Your real estate agent friend or family member may also be emotionally vested in the transaction. After all, he or she may need or significantly want the commission from your transaction, or he or she may feel pressure to serve you because of your relationship. This means that both parties may be stressed.
  8. 8. The Ability To Get Personalized, Responsive Customer Service You may think that you would get very personalized customer service from a friend or family member who is a real estate agent. In many cases, this is true. After all, the agent may know you and your family personally. They may be aware of your tastes, preferences, and more. On the other hand, the real estate agent may see that he or she is working for a discounted rate in some cases, and he or she may therefore offer a discounted level of service. In some cases, the agent may think that serving other clients who are not friends or family members is more important than serving you, and your transaction may be placed on a back burner.
  9. 9. Contact us CONTACT US TODAY TO DISCUSS YOUR SITUATION, LEARN MORE ABOUT THE BENEFITS OF HOMEOWNERSHIP, AND EVEN START YOU ON THE PATH TO FINDING THE HOME OF YOUR DREAMS. www.EPIrealestate.biz

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