If you have a friend who is a realtor, a “Frealtor,” if you will, should you use them in your next real estate transaction?
It depends.
Real Estate transactions are not simple. An average contract with only a purchase and sale agreement, a seller’s disclosure, and a finance contingency is fourteen pages of liability, responsibility, and contractual obligations. Failure to perform according to the contract could cost you time and money, and perhaps the house you hope to purchase. Once the contract is binding, then you have appraisal, inspections, additional amendments and issues to resolve. Every contract is different and every contract comes with its own set of issues (not unlike your ex).
You always hear that your home is often your largest financial investment. This is true for most of us but it is also one of our largest emotional investments. Think about what “home” means vs. “house.” Only you can answer what that means to you and it’s based on all the emotional attributes you bring when you start looking for a home to live your life in. It’s a big deal.
The person you use for your transaction is going to learn many details about you. They will learn about your finances and how you handle money, the state of your marriage or partnership, your biases toward schools and neighborhoods, and how many cups of coffee you can consume before you ask to use the bathroom in one of the listings.
A real estate transaction requires the cool and knowledgable head of a professional.
Would you trust your Frealtor to negotiate on your behalf? Do you believe in them enough to hand over the majority of your money? Can they handle the transactional circus of lenders, lawyers, inspectors, and errant clowns?
If the answer to all of these questions is Yes, then use your Frealtor. Keep in mind that regardless of the relationship, your Frealtor works FOR you. They are there to do a job and that job is to find the best house at the best price for you and then create an environment for a seemless transaction.
If the answer to any of the questions is No, then find your own agent who will likely become your Frealtor during the process. Obviously, not using your friend can be awkward, but do not fret as there is a solution. Finding solutions for a positive outcome is the hallmark of a great agent.
Your non-friend agent will most likely happily speak to your Frealtor and offer a referral fee. That way, you get the best agent for you and your friend gets a payday just for being your friend.