If you hire a friend or family member as your real estate agent, there are three important things that you are going to sacrifice during your transaction.
There are three sacrifices that people often make when hiring a Realtor out of obligation to a friend or family member. I know that this is sometimes an uncomfortable topic and that hiring a friend may seem like a great way to save money, but there are a few things you should consider before you opt out of interviewing other agents.
1.Security of personal information. Working with an agent who is close to a friend or your family member can be awkward if they reveal details about your transaction that you didn’t want spread around. They may be in open communication with your friends and family members about your transaction.
Hiring a neutral third party who is separate from your personal life is a good way to avoid this problem. Professional Realtors know that their clients’ personal information should never be exchanged without consent—even when referring friends and family members to other specialists on the team.
2. Avoiding the hard truths. Being properly informed is a major advantage when buying or selling. If you fully understand the situation, you are much more likely to get the results that you want. Working with a family member or friend may cause them to be less inclined to tell you those hard truths because they don’t want to offend you. One of the difficulties of working with someone in your personal circle is that they may pad some information to avoid starting any drama.
3. Navigating those legal minefields. When you’re working with an agent who has been referred to you, make sure that they understand the most common legal issues that can affect a real estate transaction. If your agent is directly related to you, this may need to be disclosed to the other party based on the state’s regulations. Some states require the disclosure because the relationship is such a strong influence on a Realtor’s decision-making process.
When legal issues become part of a real estate transaction, an experienced agent knows how to navigate the situation without offering personal, emotional opinions that may steer you in the wrong direction. The information you receive from your agent needs to be objective.
Your Realtor should always recommend that you hire an attorney if you feel the need to. They should never discourage you from this.
Your Realtor should play the role of an advisor, not a salesperson or house shopping companion. They should follow your lead on every decision and keep you informed throughout the entire process.
I hope this information helps you make the best decision for you and your family as you go through your home sale.