Skip to Content

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 Madison rental property investor, it can be challenging to decide whether or not to recruit a real estate agent to help sell your property. From one angle, an agent could help you sell your property, freeing up all the time you’d devote to the task. But on the other hand, real estate agents often take commission fees, which can eat into your profits. Given the advantages and drawbacks of partnering with a seller’s agent, it’s important to weigh your options carefully before determining if an agent is advisable for you.

Pros of Hiring a Real Estate Agent

The main selling point of collaborating with a seller’s agent is that they provide a level of expertise and access that most people don’t have. Experienced real estate agents are experienced in local real estate laws and regulations, so they can make sure 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 bring about an easier, smoother sale for rental property owners. Real estate agents who specialize in rental properties, in particular, may be able to get through to Madison property managers who are aware of the value of an income property and who are prepared to pay a fair price.

Another major perk of hiring a seller’s agent is that they can help you save time. This is great news for busy rental property owners because managing the sale process for an income property can be incredibly time-consuming. A professional 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

The major drawback of employing a real estate agent is the cost. Agents often 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 justified the value. At the same time, it’s imperative to remember that some real estate agents charge additional fees for marketing or other services. Because of this, make sure you have a list of commissions and fees before hiring.

Also, rental property owners should remember that some agents are not necessarily qualified or experienced in rental properties specifically. This means they may not understand the complexities of rental transactions and could cost you time and money instead of saving it for you. To conclude, there is no promise 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. However, 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 agree not to hire an agent, you’ll be in charge of managing the sale yourself. This includes marketing your rental property, handling contract negotiations, and handling inspections with potential buyers. You must also warrant that all rental property sale transactions are legal in your state/jurisdiction. If you decide to go this route, thoroughly research rental property rental laws and regulations before listing your rental property for sale.

As a whole, hiring a real estate agent can be useful for rental property owners who need more time or expertise to sell a rental property on their own. Yet, it’s important to carefully weigh all the pros and cons before making a choice.

If the reason for selling your Madison rental property is that you don’t want to deal with the hassle of property management, you might want to reconsider. Hiring Real Property Management Omega 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.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

The Neighborly Done Right Promise

The Neighborly Done Right Promise ® delivered by Real Property Management, a proud Neighborly company

When it comes to finding the right property manager for your investment property, you want to know that they stand behind their work and get the job done right – the first time. At Real Property Management we have the expertise, technology, and systems to manage your property the right way. We work hard to optimize your return on investment while preserving your asset and giving you peace of mind. Our highly trained and skilled team works hard so you can be sure your property's management will be Done Right.

Canada excluded. Services performed by independently owned and operated franchises.

See Full Details