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Is Hiring a Real Estate Agent Worth It When Selling a Rental Property?

An agent and a property seller sitting down at a table looking at documentsAs a Minneapolis rental property investor, it can be hard to conclude whether or not to consider hiring a real estate agent to help sell your property. One positive is that a broker might be able to assist you to sell your property, freeing up all the time you’d devote to the job at hand. Nevertheless, real estate agents more often than not charge commission fees, which can eat into your profits. Given the benefits and drawbacks of hiring a seller’s agent, it’s vital to weigh your options cautiously before making a decision if an agent is right for you or not.

Pros of Hiring a Real Estate Agent

The main selling point of employing a seller’s agent is that they provide a level of expertise and access most people do not have. Experienced real estate agents are well-versed in local real estate laws and regulations, so they can ensure that all legal requirements are met during the sale process. They may also have access to exclusive listings and contacts in the industry which could lead to a simpler, speedier sale for rental property owners. Real estate agents who specialize in rental properties may be able to hook up with Minneapolis property managers who know the value of an income property and those who are ready and able to pay a fair price.

Another significant advantage of hiring a seller’s agent is that they can help you save time. This is especially helpful for busy rental property owners because managing the sale process for an income property can be incredibly time-consuming. A good real estate agent will be able to market your rental property to potential buyers and negotiate on your behalf, all tasks that would take up a great deal of your time should you try to do it yourself.

Cons of Hiring a Real Estate Agent

One of the major downsides of hiring a real estate agent is the cost. Agents typically charge commission fees based on a percentage of the sale price, which can decrease your profits. Of course, that commission buys you valuable expertise and time saved, so for many property owners, it’s worth the cost. At the same time, it’s important to note that some real estate agents charge additional fees for marketing or other services. For this reason, get a complete list of commissions and fees before hiring.

Furthermore, rental property owners should acknowledge some agents are not automatically qualified or experienced in rental properties in particular. This implies that they may not fully grasp the complexities of rental transactions and could cost you time and money instead of saving it for you. Finally, there is no guarantee that an agent will be able to get you a better price (or any sale at all) for your rental property, so there is always an element of risk when hiring one. Still, most agents only get paid if they close the sale, so these risks are relatively small.

For Sale by Owner – What to Expect

If you choose not to hire an agent, you will be in charge of managing the sale yourself. This means marketing your rental property, handling contract negotiations, and handling inspections with potential buyers. You must also ensure that all rental property sale transactions are legal in your state/jurisdiction. If you go this route, thoroughly research rental property rental laws and regulations before listing your rental property for sale.

Overall, hiring a real estate agent can benefit rental property owners who need more time or expertise to sell a rental property independently. However, it’s essential to carefully weigh all the pros and cons before deciding.

If the reason for selling your Minneapolis rental property is that you do not wish to deal with the hassle of property management, you might want to reconsider. Hiring Real Property Management Fidelis for professional property management could make owning rental properties an easy and efficient way to build long-term wealth. To learn more, contact us online.

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