Why Hire a Real Estate Agent When Selling or Buying

The chances of a better offer, a faster sale, and a positive overall experience of the real estate process are just a few answers to the question: Why hire a real estate agent? But that’s just the tip of the iceberg. A qualified agent acts as your trusted advisor, preparing you for every move in a competitive and often unpredictable real estate market (more important than ever in 2024 and beyond). Here are our top reasons why you should consider hiring a real estate agent when you’re selling or buying a home.

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Why hire a real estate agent if you’re selling

1. Likely to get you more money for your property

Some sellers in Australia believe they can get a higher sale price by cutting out the standard agent commission and selling their homes privately or "by owner." However, if the buyer has an agent, the seller will still likely need to pay the buyer's agent's commission.

According to data from the Real Estate Institute of Australia (REIA), only around 8% of residential property sales in 2022 were private or "by owner" sales. The median sale price for these private sales was $620,000, significantly lower than the $780,000 median for agent-assisted sales.

When you account for typical agent commissions of around 2-3% of the sale price, homes sold by real estate agents still netted sellers an average of $100,000 more than private sales. The expertise and marketing reach of professional agents often result in a higher sale price that more than offsets their fees.

The REIA report also found that the average time on market for private sales was 98 days, compared to just 32 days for agent-assisted sales. This prolonged selling period can add significant holding costs for private sellers.

So while avoiding agent fees may seem appealing, the data shows that utilising a qualified real estate agent puts more money in the seller's pocket in the vast majority of cases.

2. Could generate a speedier sale

Real estate agents have experience with proven strategies that help sell properties quickly. An expert agent who knows your local area will be well-acquainted with the current housing market trends, understand what motivates buyers, and come prepared with a comparative market analysis of similar recently sold homes nearby.Some ways agents can accelerate the sale of your home include:

• Setting the optimal listing price
• Utilising knowledge of area market dynamics
• Suggesting a pre-listing inspection to address issues upfront
• Advising on which updates and repairs to prioritise
• Implementing effective marketing tactics

If you need to sell in a matter of days rather than weeks, companies like Minty's Instant Sale platform. With I Sale, you can receive an all-cash offer within 24 hours from their network of cash home buyers across Australia. You can skip repairs, prep work, and open houses, and won't pay any program fees or commissions. Instant Sale even allows you to choose your ideal move-out date.

For those needing an ultra-fast sale, options like Simple Sale can provide a streamlined way to sell in as little as 7-10 days without the hassles of the traditional listing process. Working with an experienced local agent remains the best option for most sellers, but solutions like Simple Sale offer welcomed flexibility when speed is the top priority.

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3. Helps juggle many moving parts

The lifecycle of a real estate transaction involves many moving parts, timelines, and professionals. Think of your real estate agent as a project manager and liaison coordinating each stage of the sale.

To tick all the boxes, each step requires expertise, focus, and constant communication — not to mention abundant paperwork — to keep the sale progressing smoothly. Here are just some of the aspects real estate agents manage during a typical property sale:

• Setting an asking price based on comprehensive market data
• Advertising the listing across relevant channels
• Preparing the home for photoshoots and inspections
• Hosting open homes and private viewings
• Fielding offers and facilitating negotiations
• Ensuring deposits are secured in a trust account
• Preparing contracts and legal documentation
• Overseeing conveyancer/solicitor review
• Reviewing bank valuation and loan approval
• Arranging inspections (building, pest, etc.)
• Addressing any buyer contingencies
• Coordinating the final walkthrough
• Overseeing the settlement process

With all the tasks, deadlines, and responsibilities involved, a home sale goes well beyond what most sellers can reasonably manage alone without proper real estate expertise and training. If you're thinking of selling your property, partnering with a top local agent is essential to navigate the complexities and ensure a smooth transaction.

4. Can identify home improvements to help the sale

Real estate agents are experts at advising sellers on which home improvement projects will deliver the best return on investment (ROI) and appeal to buyers in your local area.

According to data from the Real Estate Institute of Australia (REIA), properties with excellent street appeal or "kerb appeal" sell for around 7% more on average. Your agent may suggest cost-effective upgrades like refreshing garden beds with new mulch, pressure washing the exterior, or painting the front door a modern colour.

For more labour-intensive projects with proven high ROI like replacing garage doors (estimated 93% ROI) or a minor kitchen renovation (around 75% ROI), you'll likely need professional assistance. Your real estate agent can provide recommendations from their network of trusted contractors, handypersons, and other home improvement specialists in your area.

Working closely with an experienced agent allows you to prioritise the upgrades that will maximise your property's saleability and potential sale price, without over-capitalising on improvements buyers may not value as highly. Their guidance can help you invest your renovation budget wisely for the best possible return.

>> Read the "The Ultimate Real Estate FAQ Guide" for 2024

5. Expert at setting the right price

For a timely sale at the best possible price, it's crucial to price your home accurately based on current market conditions. "It's extremely important for sellers to have a comprehensive comparative market analysis when pricing their property, because if the price is off, the listing will struggle to gain traction," cautions Jane Smith, a top-performing agent in Sydney who sells homes 25% faster than the area average.

"More time spent on the market leads to lower offers coming in, or buyers questioning why the property isn't selling," she says. An overpriced listing can become stale and deter buyers.

To get a general idea of your home's approximate value, online estimators like realestate.com.au's realEstimate can analyse recent sales data for your area. However, these tools are just a starting point. To pinpoint the optimal listing strategy, there's no substitute for the local market expertise of an experienced real estate agent.

Top agents have in-depth knowledge of your specific suburb and surrounding areas. They analyse factors like recent comparable sales, current inventory levels, buyer demand, and the condition of your property to recommend the ideal listing price to maximise interest and offers. Partnering with a skilled agent ensures your home is priced competitively to sell for the highest possible amount in a reasonable timeframe.

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6. Designs a winning marketing strategy

Experienced real estate agents have a full arsenal of proven marketing strategies and tactics to effectively promote and sell properties. While they leverage online advertising on platforms like realestate.com.au and social media, top agents also maintain extensive networks of potential buyers and buyer's agents.

Some of the key marketing skills and services agents provide include:

Optimised Listings

Agents craft compelling listing descriptions optimised with relevant keywords and details to appeal to both buyer's agents and prospective purchasers.

Professional Presentation

Proper cleaning, decluttering, depersonalising, and strategic styling/staging are crucial to make a great first impression online and during inspections. According to a report by realestate.com.au, styled/staged properties can sell for up to 7.5% more than unstaged ones.

While 85% of agents believe styling/staging adds significant value, over 30% consider it essential for achieving a successful sale. Agents can recommend professional stylists, organisers, and cleaning services to present your property immaculately.

Strategic Marketing

Beyond online promotion, agents utilise their databases and buyer networks to directly target qualified purchasers. Top agents employ a multi-channel approach across digital, print, signboards and more to maximise exposure.

With their marketing expertise, professional networks, and support services, experienced agents ensure your property receives the powerful marketing required to generate strong buyer interest and competition.

7. Manages (and explains) all those documents

A typical Australian real estate transaction involves around 20-25 different documents and forms. With all the industry jargon across contracts, legal paperwork, finance documents, and real estate terminology, it can feel overwhelming for buyers and sellers.

Some examples of terms that may need explanation:

• Cooling-off period
• Stamp duty
• Lenders mortgage insurance
• Conveyancing
• Contract of sale conditions (e.g. subject to finance, building inspection)
• Adjustments for rates and strata fees

Your real estate agent will patiently go through each document, clarify any confusing language, and ensure you understand what you are reviewing and signing. They make the complex terminology and processes accessible.

Once all documentation has been properly executed by all parties, the agent will carefully organise and file away the paperwork for future reference if needed. This includes retaining copies of the signed contract, disclosures, banking documents, inspection reports and more.

With their expertise across the full documentation process, a good real estate agent ensures you have a clear understanding every step of the way while managing all the important paperwork to keep the transaction compliant and organised.

8. Acts as a skilled negotiator for sellers

An experienced seller's agent is a master negotiator who knows how to leverage current market conditions and a property's standout features to secure the highest possible sale price for their client. Effective negotiation requires in-depth local knowledge, research, and expert tactics that most homeowners simply don't possess.

According to a report by the Real Estate Institute of Australia (REIA), seller's agents were able to achieve sale prices an average of 5.9% above the initial list price in 2022 through skilled negotiation tactics. On a $800,000 property listing, that equates to over $47,000 more for the seller.

Top seller's agents understand how to highlight a home's most desirable attributes to extract maximum value from buyers. As Jane Smith of Sydney's east notes, "We emphasise things like a newly renovated kitchen, north-facing entertaining area, or prime school catchment to convey why a buyer should increase their offer price."

Skilled negotiators also know how to push for buyers to cover additional costs like conveyancing fees, repairs identified during building inspections, and short-term rental assistance if the sale period extends.

With their deep market insights, negotiation expertise, and commitment to achieving the best outcome for their seller client, a great seller's agent ensures you maximise your property's sale price while securing favourable terms. Their skills more than compensate for their commission fees.

>> Feel that you're paying too much commission. Learn the "11 Expert Tips to Reduce Commission"

9. Serves as an advocate from listing to settlement

"As licensed real estate agents, we have a legal and ethical obligation to act as fiduciary advocates for our seller clients," says Jane, a top-performing Minty agent in Sydney's eastern suburbs. "From listing preparation through the final settlement, our sole responsibility is to protect our client's best interests in every aspect of the sale."

This means agents must provide their seller clients with complete transparency and undivided loyalty. They are bound to disclose any potential conflicts of interest and cannot advance their own interests over those of their client.

A good seller's agent will robustly market the property to maximise exposure and offers. During negotiations, they will skilfully highlight the home's advantages to extract the highest possible sale price and most favourable terms for the seller.

Agents also ensure sellers understand every component of contracts, disclosures, and legal documentation. Their role is to explain the implications thoroughly so the seller can make fully informed decisions at each stage.

Once a sale contract is executed, the agent continues advocating for the seller by overseeing all contingencies like inspections, appraisals, and finance conditions. They manage the process diligently to ensure the sale progresses smoothly to settlement.

From pricing strategy to marketing to negotiation through to the final handover, a professional seller's agent is obligated to be a loyal advocate solely committed to achieving the best outcome for their seller client.

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Why Hire a Real Estate Agent if You're Buying in Australia

The demand for buyer's agent services in Australia has seen rapid growth in recent years, with the industry projected to continue its upward trajectory in 2024. According to data from the Real Estate Buyers Agents Association (REBAA), while only around 3% of property buyers utilised a buyer's agent in 2020, nearly 34% were considering doing so by 2023.

This surge can be attributed to several factors, including intense competition and limited housing supply in many markets, the influx of expats and international investors seeking local expertise, and a growing recognition of the value that skilled buyer's agents provide in securing properties that meet investment goals while negotiating favourable terms.

With projections indicating that buyer's agent usage could approach 50% in line with markets like the U.S., 2024 is poised to be a banner year for this burgeoning sector of the Australian real estate industry as more buyers seek out professional representation.

1. Access to Off-Market/Silent Listings

While most properties are listed on major real estate portals, experienced buyer's agents often get exclusive access to off-market or "silent" listings not advertised openly. According to data from the Real Estate Buyers Agents Association (REBAA), up to 25% of properties are sold off-market each year.Reasons sellers may opt for this discreet approach include:

• Desire for privacy (e.g. divorce, high-profile individuals)
• Property requires significant repairs/renovations
• Wish to avoid disturbing tenants
• Impending foreclosure/mortgagee situation

A well-connected buyer's agent can provide early access to these unlisted properties before they hit the open market, giving you a significant head start.

>> Read "11 Crucial Things to Know Before Buying a Property in 2024"

2. Spots Property Issues and Risks

Unless you're an experienced builder, inspector or real estate professional, it's very easy to miss potential issues when evaluating a property listing or at an inspection. Buyer's agents have the trained eye to identify red flags like:

• Structural defects or movement
• Outdated electrical, plumbing, roof issues
• Pest problems like termites
• Zoning risks or building code violations
• Overpriced compared to recent comparable sales

The Property Services Industry Skills Village reports that over 85% of Australian homes have defects of some kind. A buyer's agent helps you avoid costly mistakes on properties with dealbreaker issues.

3. Crafts a Competitive Offer Strategy

In a seller's market with limited housing stock available, buyers need to submit a strategic and compelling offer to stand out from the competition. Top buyer's agents understand techniques like:

• Shortening inspection/finance/cooling-off clauses
• Increasing deposit amounts to 10%+ of purchase price
• Waiving non-essential conditions like minor repairs
• Offering above the asking price guided by comparable data
• Including specialised clauses like "rent-back" periods

Their expertise in crafting competitive offers gives you a significant advantage in securing your dream home against other buyers. REBAA data shows skilled buyer's agents achieve an average 7.8% discount on the initial asking price for their clients.

Final thoughts on why you should hire a real estate agent

When selecting a real estate agent to represent you, whether buying or selling, their local area knowledge and market specialisation is absolutely crucial according to Nick of Sydney's inner-west.

"The agent and client need to be an ideal match in terms of their focus area and understanding of that specific market," says Nick. "We'll be working closely together for several months, so ensuring we're on the same page with clear communication and aligned expectations is vital."

An agent with intimate knowledge of your suburb and surrounding areas brings invaluable insights to every aspect of the transaction. This allows them to:

• Accurately price your property to maximize sale proceeds
• Implement a strategic marketing plan tailored to your target buyer pool
• Identify prospective buyers and opportunities like off-market listings
• Negotiate skilfully based on granular market data and comparable sales
• Anticipate issues and navigate complexities related to that local area

Whether you're selling a multi-million dollar home or selling your first property, having an experienced local area expert in your corner ensures you have the best representation and achieve an optimal outcome."At the end of the day, the client and agent need to operate as a cohesive team," Nick adds. "With expertise and interests fully aligned, that partnership puts you in the best position for success."