One of the most valued qualities in the real estate market is honesty, responsibility and commitment. So, if you are a real estate agent, pay close attention to this issue, you may be able to avoid a few headaches and complications. It’s no wonder that one of the most frequently asked questions in this profession explores the possibility of a real estate agent being able to buy and sell his or her own home. There are many factors that come into play. Therefore, in this article we will detail as neutrally as possible all the pros and cons of representing yourself in real estate negotiations of this type.
Could a real estate agent buy and sell your their own property?
Before answering this question, it is necessary to clarify that each state has its own laws. In this sense, before doing any kind of practice you should be aware of this. A real estate agent who has a valid license can buy and sell a property. However, this is not as simple as it seems and can even become a problem if not handled in the right way.
If you are presented with this situation, the fair and reasonable thing to do is to be honest in every way with the parties involved. It is crucial to inform that you are the owner and agent of the property. Remember what was said in the first lines, certain qualities can define your level of professionalism.
Consequently, the disclosure about the property must be transparent, complete and without any interests involved. As you will see, if you are a real estate agent you can make the negotiation of your own house or property, as long as it is an objective operation.
Advantages of buying and selling your own home as a real estate agent
We know that as a real estate agent it can be tempting to buy and sell your own home. Such a situation presents itself more than you might think. So, with this scenario in mind we offer valuable information that will help you make things clearer. Here are some of the most common advantages:
Greater dedication during the buying/selling process
This is one of the benefits that you can obtain if you represent yourself in a real estate negotiation. There is no one better than you to ensure the success of the transaction. In addition, you can dispose more efficiently and even conveniently of the time you spend so that everyone involved is completely satisfied.
Saving on commission
This is usually the main reason why a real estate agent decides to do this type of transaction. The commissions to be paid to your agent for the sale of a property can be between 3 and 5%, if you think about it and do some calculations, the figures could be overwhelming. So you could be saving a good amount at the same time that you achieve a successful transaction.
Better chance of completing the real estate transaction
You will undoubtedly have more opportunities if you manage as your own agent. By obtaining a savings on the commission that you will not pay to an external agent, you can adjust the price of your property, that is, lower the selling price to make this an opportunity that no buyer will want to miss.
Disadvantages of buying and selling your home as your own real estate agent
As in any transaction there are risks, which in this case if not taken care of effectively, can have legal consequences. To prevent this from happening to you we have compiled some of the most common mistakes real estate agents make when trying to sell their properties. Take a look.
One step away from conflict of interest
It often happens that the fact that a real estate agent represents himself generates some insecurity in the other party. This is normal, since many agents lose all sense of objectivity, ethics and professionalism when starting a negotiation of their own property. For example; you may reserve some details of the house that would negatively influence your decision to buy.
A real estate agent who manages himself has a high probability of overvaluing the property in order to make more profit than he should. This is indeed unethical, but in actual practice this is what often happens in these types of transactions.
You may incur as a dual agent
First of all, it is important to clarify that this is illegal in some states such as Alaska, Colorado, Vermont, Oklahoma, Florida, Texas among others. A dual agency can occur if the same agent represents himself (as seller), at the same time, represents the buyer in the entire transaction process. The function of an agent is to ensure the satisfaction and security of his client. In such a situation, this link is very vulnerable.
Ethics and objectivity: The shield of a real estate agent in any transaction
In conclusion, if you are a real estate agent and you want to make a purchase/sale of your real estate, house or property, you can do it. There is no legal basis that prohibits it, but your broker must be aware of it, therefore, the most difficult task may be in this part of the process.
Ideally, you should take into consideration all the difficulties that may arise along the way. Before starting any type of negotiation with the buyer of your property, be aware of your objectivity as a professional. Although it may not seem like it, this is a relevant factor for the operation to end satisfactorily for both parties.
As we have said before, it can be somewhat attractive to earn much more money by employing some strategies when selling your own home. But, without a doubt, it only takes one mistake or conflict to bring down a good reputation as a real estate agent.
The best advice: Make smart decisions and you’ll get it right!