Pros and cons of using a friend as a real estate agent

Dec 6

Buying or selling a home is a major life event, and choosing the right real estate agent can make all the difference. If you have a friend who’s a licensed real estate agent, it might seem like an obvious choice to work with them. However, mixing business and friendship isn’t always straightforward. Let’s dive into the pros and cons of using a friend as your real estate agent so you can make the most informed decision.

Pros of Using a Friend as Your Real Estate Agent

1. Built-In Trust

A strong friendship is built on trust, and that foundation can translate well into a professional relationship. You’re less likely to worry about being misled or taken advantage of when working with someone you already know and trust.

2. Personalized Attention

Friends often go the extra mile for each other. Your friend may be more willing to work flexible hours, respond quickly to your concerns, and put in extra effort to meet your needs, ensuring a smoother experience.

3. Shared Understanding

A close friend is likely to understand your tastes, preferences, and lifestyle better than a stranger. This insight can help them tailor their search for the perfect property or market your home effectively to the right buyers.

4. Potential Cost Savings

While not guaranteed, some friends might offer a discount on their commission or other perks as a gesture of goodwill. This could save you money during the transaction.

5. Open Communication

Since you already have a comfortable rapport, you might feel more at ease asking questions or voicing concerns. This transparency can help avoid miscommunication and ensure smoother negotiations.

Cons of Using a Friend as Your Real Estate Agent

1. Blurred Boundaries

Mixing personal and professional relationships can blur boundaries. If the transaction doesn’t go as planned, it could strain your friendship or make conversations awkward.

2. Lack of Objectivity

Friends may struggle to give you unbiased advice, especially if they don’t want to upset you. For example, they might hesitate to suggest lowering your asking price, even if it’s necessary for a quicker sale.

3. Skill Level and Experience

Just because your friend is a licensed agent doesn’t automatically mean they’re the best fit for your specific needs. They may lack experience in your local market or in dealing with unique challenges related to your property.

4. Difficult Feedback

Real estate transactions often require tough conversations, such as pointing out flaws in your home or unrealistic expectations. A friend may sugarcoat the truth to avoid hurting your feelings, which could hinder the process.

5. Conflict of Interest

If disagreements arise, it could be challenging to resolve them without damaging your friendship. Additionally, if the sale falls through or you’re unhappy with the outcome, it may create lingering tension.

When Does It Make Sense to Work with a Friend?

If you’re considering using a friend as your real estate agent, ask yourself these questions:

Are They Experienced? Do they have the skills and local expertise necessary to handle your transaction?
Can They Maintain Professionalism? Will they be honest and objective, even if it’s uncomfortable?
Do You Feel Comfortable? Are you confident that your friendship can withstand potential challenges?

Tips for Setting Boundaries

If you decide to move forward with a friend as your agent, here are some tips to ensure a smooth process:

Sign a Formal Agreement: Treat the transaction as you would with any professional agent. This helps set clear expectations.
Communicate Openly: Have an honest conversation upfront about goals, concerns, and how to handle potential issues.
Separate Personal Time from Business: Keep business discussions focused and avoid letting them dominate your personal interactions.
Be Honest About Performance: If things aren’t going as planned, don’t hesitate to voice your concerns respectfully.

Final Thoughts

Using a friend as your real estate agent has its advantages, but it also comes with risks. Weigh the pros and cons carefully before making your decision. A strong friendship can be an asset in navigating the complex real estate market, but clear communication and boundaries are key to preserving both your relationship and your financial interests.

If you have any doubts, it’s okay to choose another agent and keep your friendship intact. Ultimately, the goal is to ensure a smooth and successful real estate transaction—whether or not a friend is by your side professionally. Contact Kim Lee for more information.

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