Should I work with my real estate friend to buy or sell my property?

What’s better than a friendly real estate agent? A real estate agent who’s actually your friend! When the time comes to choose a real estate agent, everyone’s top priority is finding an agent who understands them and is motivated to work hard with a shared vision. What could be more effective than working with a friend who knows you well and is better equipped to understand exactly what it is you’re looking for? Mixing business and friendship doesn’t have to be messy, and in this case, it comes with some fantastic benefits you likely wouldn’t be able to take advantage of otherwise. Working with a friend who has your best interests at heart helps make the experience stress-free and rewarding. Below we dive into our top 3 reasons why you should consider working with your realtor friend when buying or listing a property. 

Reason 1: Realtor friends don't need to know your personal finances

Yes, the thought of sharing detailed financial information is nerve-wracking for anyone. Of course you want to find the best deal, but would prefer not to forfeit financial privacy in order to do so. Fortunately, with a realtor friend looking out for you, there’s no need to disclose detailed financial information. Rest assured that when it comes to finances, your real estate friend will only need to know your ballpark budget, amount of downpayment, and whether or not you’re pre-approved; knowing your portfolio details, yearly income and expenses isn’t useful for them. They’re here to help you find the home of your dreams, not to dig deeper into your financial situation. Any information you’d like to keep private is yours, the great thing here is that you get to experience all of the friendliness alongside professionalism. According to Remax, it will be your mortgage lender handling inquiries into your personal financial situation. Any concerns you may have sharing that more personal information with your real estate friend are easily avoided. By allowing the mortgage lender to take on paperwork and number-crunching responsibilities, all you have to worry about is finding the perfect home for you and your family. 

Reason 2: Your friendship isn’t going to turn into a boring business relationship 

On the contrary, real estate investing with friends is the simplest way to turn the process into an exciting adventure rather than just a tedious transaction. Real estate investment decisions are some of the most deeply personal decisions you make in your life, so having a realtor who treats you and your time as more than just business transactions is the best-case scenario. Because you’re working closely with a friend, you know that your realtor isn’t rushing and cutting corners to make a sale; this person is a trusted friend and truly cares about the outcome. They’ll be along for every step of the process, and share in your excitement when you find the house of your dreams or finally sign the perfect tenant for a rental property. An added bonus of working with a friend is that this work creates new shared moments, memories, and experiences that forge an even stronger bond between you.

Reason 3: Working alongside a friend makes things easier; they know you well 

Finding a home is easier when you know you have a friend in your corner throughout the process. Your realtor friend will take the time to help you find the homes that tick all of your boxes. With their inside knowledge of who you are, your lifestyle, likes and dislikes, and your habits, they’re more likely to be able to pinpoint what kind of house will make a fantastic fit than a random realtor. Friends filter out options that would be a waste of your time by refusing to show you homes that fail to meet your criteria. They know you, keep your needs and wants in mind, and will make sure the houses you’re taking the time to see are actually what you're in the market for! Plus, sometimes friends know us better than we know ourselves, so they might even surprise you with something unique and unexpected that matches the expectations you have for the spaces, activities, and interests you live for.

Wondering how to tell a realtor friend you found someone else?

If you’ve decided that real estate investing with friends isn't right for you, letting your realtor friend know quickly and politely is essential. Tell them why you decided to go with a different realtor— it’s okay if mixing business and friendship is out of your comfort zone. Har.com says that “You can feel validated and “right” by all the stuff you see online, or hear out of the mouth of some random real estate agent who’s trying to convince you to work with him, instead of your friend or family member,” but remember that the same concerns you have about working with friends are likely to surface with other realtors, too. 

Whether you're buying a property for the first time or selling your current home, real estate transactions are daunting. If you have a friend with the knowledge and expertise, why not use that to your advantage? Having someone on your side who knows you well and is as excited as you are makes it feel like you’re embarking on the adventure of a lifetime rather than an intimidating business deal. Friends have each other’s backs, and thus, yours is likely to score you a great house for a great deal. Let them take some of the weight off your shoulders and turn it into an enjoyable and rewarding experience. For first-time home buyers, we recommend checking out Pearsall Properties’ blog with more of our best tips here. 

Wondering how to break into real estate investing with friends? Trying to figure out if real estate investing is right for you? Pearsall Properties is here to help. To connect with us and chat about your property or house hunting, click here. Visit our website to learn more about our real estate services, or sign up to receive updates on current real estate trends.