In my brokerage practice, the primary value I want to provide for my clients is providing high quality representation (and all that representation entails, which in my opinion is dramatically underrated).  Additionally, I was curious about what the market felt were the important reasons for hiring the right agent, especially in regard to investment property brokerage.  There is no shortage of articles on the topic, my favorites are the lists with numbers, i.e. the “7 Benefits of Hiring A Real Estate Broker”, and “Avoid the Top 5 Pitfalls of Not Hiring an Agent”, etc.  I love them all!

What stood out to me is I could find three potential benefits of NOT utilizing a real estate broker:

  1. Potential to save money
  2. No middleman
  3. Direct connection to parties

Those can be potential benefits, however, when you do the math the cost is pretty high.  On the flipside,  I found 99 potential benefits to hiring the right broker. Here is what I found, with most of the benefits falling under these five categories:

  1. Representation for a very large investment
  2. More money for sellers
  3. Get a better deal 
  4. Save time
  5. Higher probability you get exactly what you want

I collated the benefits to fit in three categories: “Buying”, “Selling”, and “Buying & Selling”, and while some of these are somewhat redundant, I attempted to remove the obvious overlaps.  None of the internet articles specifically focused on multi-family brokerage, so I added those benefits to the list.

What else do you think should be on the list?

BUYING

  1. Free for buyer’s agent typically
  2. Save time on market research
  3. Save time researching properties for sale
  4. Help with due diligence
  5. Finding the right inspector
  6. Help with title issues
  7. Help with re-negotiating after inspections
  8. Help creating an operating expense budget
  9. Help with operating problems post closing
  10. Help with operating efficiency post closing
  11. Help finding the right property manager
  12. Access to off market deals
  13. May get you better price
  14. Gets you access to properties
  15. Motivated to find you a deal
  16. Help you with financing preapproval
  17. Help finding the right lender for the deal
  18. Help requesting repairs
  19. Knows “lay of the land”
  20. Knows the market
  21. Helps in finding something specific
  22. Finnding the right deal
  23. Support post closing
  24. you have nothing to lose!
  25. Identify unnoticed features with property 
  26. Identify unnoticed faults with property
  27. Will schedule meetings with potential property managers
  28. Help choosing proper financing
  29. Help with required buyer documentation
  30. Sift through available properties to narrow choices quicker, more efficiently
  31. Expert eye- avoid bad deals
  32. Knowing about future deals that are not on the market yet
  33. Help with first time buying
  34. Avoid overpaying
  35. Access to market rental data
  36. Brokers know what to look for

SELLING

  1. Pricing expertise
  2. Getting bids from the right service providers
  3. Ethics, full disclosure of problems
  4. Convenience
  5. Free valuation of your property
  6. Will set up photographer
  7. Help with the appraisal process
  8. Create effective marketing 
  9. Can provide tips prior to selling
  10. Access to a large pool of buyers
  11. Help with required seller documentation
  12. Placing ads
  13. If 1031 seller, can help with 1031 buying (establishes relationship for 1031 buying access)
  14. Learn what improvements sell in your market
  15. Validates your property/price
  16. Access to 1031 buyers
  17. The right broker is a “hub” for prospective buyers, i.e. buyers check the firm’s website)
  18. Adequate social media coverage
  19. Sell properties faster
  20. Get more buyer exposure
  21. Tips on how to increase curb appeal, where to spend money, etc.
  22. The broker commission is a marketing tool to obtain a higher price
  23. Buyers are more at ease vs. dealing directly with seller

BUYING & SELLING

  1. Will set up meetings with attorneys, CPA’s, etc
  2. Will set up bids from service providers
  3. Ethics and expertise
  4. Understands complex transactions
  5. Paperwork
  6. Unemotional negotiation
  7. Zoning code expertise
  8. Thorough record keeping for multiple years
  9. Avoiding closing problems
  10. Avoid red tape, errors and omissions
  11. Save time and energy
  12. Not having to coordinate repairs
  13. Expertise on your side
  14. Avoid negotiating yourself
  15. Help with problems while pending
  16. Make negotiations an easy process
  17. Expert advice for piece of mind
  18. Guidance and support
  19. Help you understand the process
  20. Will improve client’s knowledge
  21. Negotiate better price and terms
  22. Help to successful close
  23. Assistance with all miscellaneous legwork
  24. Pricing strategy
  25. Assistance with questions before, during, after a sale
  26. Avoid going up against experienced professional on other side by yourself
  27. Emotional support through process
  28. Can help with future transactions
  29. Save time vetting contractors/service providers
  30. Follow legality 100%
  31. Avoid closing problems
  32. Help analyzing potential tax implications of buying and selling
  33. Access to sold comparables
  34. Access to Broker’s Network
  35. Privacy, confidentiality, fiduciary
  36. Help with details
  37. Broker may be able to shorten time required for service provider scheduling
  38. Help with communication with title company issues
  39. Broker may be able to fix major problems
  40. Help with specific types of real estate, i.e. Investment properties vs. residential properties