Written By: Tiffany Yang
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Hiring a Realtor can be a daunting task. It's important to consider a number of factors before you make your decision. But what if the person you're considering hiring is someone you already know? Is it a good idea to hire a friend as your Realtor? In this blog post, we will examine the pros and cons of hiring a friend as a Realtor to help you decide if it's the right decision for you.
Pros and Cons of Hiring a Friend as Your Realtor
Hiring a friend as your realtor can have both its pros and cons. On one hand, your friend may be more invested in helping you find your dream home and may provide a personal touch to the home buying process. They may also offer a reference or recommendation that you can trust.
On the other hand, hiring a friend as your realtor can also bring potential complications. If your friend is a realtor and you end up not liking any of their suggested properties, it can create tension in your personal relationship. Additionally, your friend may not be as experienced or knowledgeable in the real estate industry as a professional realtor, which could lead to costly mistakes.
It’s important to weigh the pros and cons before making a decision and ask yourself,
"Are you Comfortable with your friend knowing sensitive financial information about you?"
More specifically,
Pros:
Hiring a friend as your realtor comes with several benefits.
1. You have a personal reference that you can trust. You already know their work ethics, strengths, and weaknesses, which helps you decide if they're a good fit for you.
2. They can give you recommendations based on your personal preferences. They can provide insight into neighbourhoods and areas that would fit your lifestyle, saving you time in the home selling process.
3. As a home seller, your friend will be highly motivated to help you sell your property quickly and at a good price. They have your best interests at heart, which can give you peace of mind throughout the selling process.
Cons:
One of the main cons of hiring a friend as your realtor is the risk of damaging your personal relationship.
1. The line between personal and professional can become blurred, making it difficult to navigate potential conflicts or disagreements.
2. A friend may not be the best fit for the job, despite your personal relationship. Just because someone is a good friend doesn't mean they are the best realtor for you. If they lack experience, expertise or industry connections, they may not be able to provide the level of service or recommendation that you need to make the best decisions about your property transaction. What if your friend is really good at helping clients sell condos but not semi-houses? Not all Realtors are Jacks' of All Trades.
3. Your friend may feel uncomfortable discussing sensitive topics, such as finances or negotiating, which could potentially hinder your ability to achieve your real estate goals. Your friend may also feel obligated to cater to your wants and needs, rather than presenting the objective advice and information you need to make the best decisions for your situation.
How to Determine if Your Friend is a Good Fit
Deciding whether to hire a friend as your realtor can be a tough call. You want someone you trust to help you with one of the biggest financial transactions of your life, but you also want to avoid any awkward situations or potential fallout if the relationship sours.
Here are a few tips to help you decide if your friend is a good fit:
1. Consider their experience and expertise: Just because they're your friend doesn't mean they have the right skills or qualifications for the job. Do they have a proven track record in real estate? Have they worked with clients in your price range or location? It's important to ensure that they have the knowledge and resources to help you achieve your goals.
2. Ask for recommendations: Even if your friend seems like the obvious choice, it's always a good idea to ask around for recommendations. Talk to other friends or family members who have bought or sold a property recently, or ask your potential realtor for references from previous clients. This can give you a more well-rounded view of their strengths and weaknesses.
3. Talk about your expectations: Before you commit to working with your friend, it's important to be clear about your expectations and goals. Do you have a specific timeline or budget in mind? What kind of communication do you expect throughout the process? By setting clear expectations up front, you can avoid any misunderstandings or frustrations down the line.
4. Consider your compatibility: While your friend may be a great realtor on paper, it's also important to consider your personal compatibility. Do you have a good rapport and communication style? Do you feel comfortable sharing personal and financial information with them? Remember, you'll be spending a lot of time together throughout the buying or selling process, so it's important to ensure that you can work well together.
Ultimately, the decision to hire a friend as your realtor should come down to a combination of factors, including experience, recommendations, compatibility, and your own personal preferences. If you do decide to work with your friend, be sure to set clear expectations and boundaries, and communicate openly throughout the process to ensure a successful and professional relationship. If you're unsure, it's always a good idea to explore other options or seek the advice of a trusted professional.
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Setting Expectations and Boundaries
One of the key factors to consider when hiring a friend as your realtor is setting clear expectations and boundaries. This will help to ensure that your personal relationship doesn't interfere with your professional relationship and that everyone involved understands their roles and responsibilities.
Start by having an honest conversation with your friend about your expectations for the buying or selling process. Discuss things like your timeline, budget, must-haves, and deal-breakers. Be specific about what you are looking for in a property and what your priorities are. This will help your friend to better understand your needs and goals and to make the best recommendations possible.
Next, talk about boundaries. It's important to establish what is and isn't acceptable in terms of communication, availability, and other factors. For example, you may not want your friend to contact you outside of normal business hours or to discuss certain details with other people. Be clear about what you are comfortable with and make sure that your friend understands and respects these boundaries.
Another important consideration is conflicts of interest. Your friend may have other clients who are interested in the same properties as you, which can create conflicts of interest. Make sure that your friend is upfront about these potential conflicts and takes steps to ensure that they don't compromise your best interests.
The Importance of Communication in Professional Relationships
When it comes to hiring a friend as your realtor, communication is key. A recommendation from a friend may seem like a great way to ensure a positive experience, but it's important to establish clear expectations and boundaries from the beginning.
Maintaining open and honest communication can help prevent misunderstandings and ensure that both parties are on the same page. It's important to set realistic goals and timelines and to discuss any concerns or challenges as they arise.
Clear communication can also help build trust in the professional relationship. This trust can lead to a better understanding of each other's needs and preferences, resulting in a smoother and more successful transaction.
However, it's important to note that communication should also be professional in nature. It's important to maintain a level of respect and professionalism when working with friends to avoid potential conflicts or misunderstandings.
Alternatives to Hiring a Friend as Your Realtor
SAIGE! SAIGE! SAIGE!
Online platforms like Saige offer tools and resources that can help you navigate the real estate market. Saige provides you with a personal experience that focuses on matching you with a suitable realtor that will get the job done.
Remember, while hiring a friend as your realtor may seem like the easiest option, it's not always the best choice. Take the time to explore your options and find the right fit for YOUR needs.
Sources:
Josie. “Should I Hire My Friend or Relative as My Real Estate Agent?” The Josie
Stern Team, 22 Jan. 2019, josiestern.com/most-popular-
blogs/2018/12/should-i-hire-my-friend-or-relative-as-my-real-estate-agent/.
Piche, Melanie. “My Friend’s a Real Estate Agent: Should I Hire Them?”The
BREL Team | Toronto Realtors, 25 Feb. 2020,
www.getwhatyouwant.ca/friends-real-estate-agent-hire.
Taylor, Susan Johnston.5 Reasons Not to Use a Friend as Your Real Estate
Agent, 17 Mar. 2015, money.usnews.com/money/personal-
finance/articles/2015/03/17/5-reasons-not-to-use-a-friend-as-your-real
estate-agentBy Susan Johnston Taylor.
