PROS AND CONS OF USING A FRIEND OR RELATIVE AS A REAL ESTATE AGENT

May 27

When it comes to buying or selling a home, choosing the right real estate agent is a crucial decision. Often, people consider using a friend or relative who works in real estate, hoping for a more personal and trustworthy experience. However, this choice comes with its own set of pros and cons. Here's a detailed look at the advantages and potential pitfalls of using a friend or relative as your real estate agent.

Pros

1. Trust and Comfort

One of the most significant benefits of using a friend or relative as your real estate agent is the trust factor. Knowing that the person has your best interests at heart can provide a sense of comfort and security during the often stressful process of buying or selling a home.

2. Personalized Service

A friend or relative is more likely to go the extra mile for you. They understand your personal preferences and needs better than a stranger would, allowing for a more customized service. They might also be more available for discussions and consultations outside of typical business hours.

3. Potential Cost Savings

In some cases, friends or relatives might offer a discount on their commission or be more flexible with their fees, potentially saving you money. They might also provide valuable advice on how to save on other costs associated with buying or selling property.

4. Open Communication

Communication tends to be more straightforward and honest when working with someone you know well. A friend or relative is more likely to give you candid advice and keep you informed throughout the process.

Cons

1. Professional Boundaries

Mixing personal and professional relationships can be challenging. Disagreements or dissatisfaction with the service provided can strain your personal relationship. It's essential to establish clear boundaries and expectations from the outset to avoid misunderstandings.

2. Bias and Lack of Objectivity

A friend or relative might be too emotionally invested in your situation, potentially leading to biased advice. They might push you towards decisions that benefit your relationship rather than strictly adhering to professional standards and market realities.

3. Potential for Complacency

Because they know you well, a friend or relative might become complacent or less formal in their approach. This can sometimes result in a lack of professionalism, such as missing critical deadlines or not being as aggressive in negotiations as needed.

4. Compromised Confidentiality

Using a friend or relative as your agent means your personal financial situation and other confidential information become known to them. If you value your privacy, this could be a significant downside.

Tips for Success

If you decide to go ahead with a friend or relative as your real estate agent, here are some tips to ensure the process goes smoothly:

Set Clear Boundaries: Have an upfront discussion about professional and personal boundaries. Agree on how you will handle potential conflicts and ensure both parties feel comfortable addressing issues that may arise.
Formalize the Agreement: Treat the arrangement as you would with any professional agent. Sign a formal agreement outlining the terms of the service, including commission rates and responsibilities.
Communicate Regularly: Maintain open and regular communication. Schedule regular check-ins to discuss progress and any concerns. This helps keep the relationship professional and prevents misunderstandings.
Respect Their Expertise: Even though they are a friend or relative, respect their professional expertise and advice. Trust their knowledge of the market and the process, just as you would with any other agent.
Prepare for Potential Strain: Be aware that the process might put some strain on your personal relationship. Be prepared for this possibility and have a plan for addressing it if it occurs.

Conclusion

Using a friend or relative as your real estate agent can offer several advantages, such as increased trust and personalized service. However, it's essential to be aware of the potential drawbacks, including challenges in maintaining professional boundaries and the risk of compromised objectivity. By setting clear expectations and maintaining open communication, you can navigate these challenges and make the most of the opportunity to work with someone you trust. Contact Kim-Lee for more information.

Kim Lee - Vancouver realtor
400-1286 Homer St, Vancouver, BC V6B 2Y5
778-997-8938
kimlee.ca