Libby Von Bargen and Cari McGee have been friends since 2008. The two women met in West Richland, Washington, through their children, and they became friends while serving on the local parent/teacher organization together. Von Bargen knew that McGee was a real estate professional, and she recalls telling her after they met that “in 20 years, you will be my Realtor.”
It’s only been 17 years, but that prediction has come true. McGee, a broker with RE/MAX Northwest in Kennewick, Washington, recently listed Von Bargen’s five-bedroom home in West Richland for $550,000 — and the house went under contract within two weeks at the full asking price.
“I knew at the outset that I was going to use Cari,” says Von Bargen. But her husband wasn’t so sure. Despite the fact that the two women were longtime friends, Brian Von Bargen didn’t know McGee nearly as well, so she had to prove herself to him.
“He gave me pushback at the beginning,” says McGee. “I won him over, but he really questioned me about my track record and how much the house would sell for.”
To Von Bargen, it was an advantage to work with her friend. “We already had rapport,” she says. “I knew I could text my friend on a Sunday night, and I wouldn’t be bothering my real estate agent.”
McGee, who says about 25% of her deals have involved friends, agrees that it’s easier. “With a friend, I know the nuances about how they live in their home,” she says. “I also know what they’re looking for and how to approach them with issues or changes.”
But hiring a friend as your real estate agent may not be the right decision for everyone. Here’s what you should consider.
[Related:Buying a House With Friends? Avoid Disaster With These Tips]
The Pros of Working With a Friend
As Von Bargen found, working with a friend brings immediate rapport and a sense of trust. Megan O’Bryan, an office manager in Lee’s Summit, Missouri, a suburb of Kansas City, discovered that as well when she worked with her dear friend Rachel Kilmer to sell her 897-square-foot ranch home and purchase a larger one.
“We weren’t just a transaction to her,” says O’Bryan. “I’ve known Rachel for over a decade, so I know she does everything at the highest level possible. There was more trust.”
O’Bryan used her friend for both her sale and purchase even though her boyfriend’s dad is a real estate agent. Although he would have reduced the commission for the couple, he lives two hours away and isn’t an expert on the local market.
“A lot of people get a random agent from Zillow and know nothing about how honest and trustworthy they are,” says Kilmer, an agent with ReeceNichols Real Estate in Lee’s Summit. “Trust is such a big deal in this industry, so working with someone who is good at their job when you also know their character and personality is a win/win.”
Another advantage of working with a friend, although this isn’t necessarily a given: a discount on the commission you’ll pay. “The commission is negotiable, whether they are your friend or not,” says Kilmer. “But an agent might be more willing to give you a discount because of your relationship.”
Agents may also go above and beyond when representing a friend, providing a heightened level of service. “I would hate to let anybody down,” says Claire Pope, managing broker of Hodge & Kittrell Sotheby’s International Realty in Chapel Hill, North Carolina. “But especially a friend.”
[Related:How Much Does It Cost to Sell Your Home?]
The Cons of Working With a Friend
Pope says she has friends who won’t use her services because they are such good friends. “They don’t want to ruin the friendship,” she says. “It’s a personality thing sometimes — personalities might clash.”
Indeed, Libby Von Bargen warns that working with a real estate agent who’s a friend may not be right for everyone. “If you have a solid relationship with a long-standing friend, I would give it a shot,” she says. “But if you have any doubt in your gut or any hesitancy, I wouldn’t risk your friendship over it. Remember that it’s a business decision because there’s a lot of money involved.”
Working with a friend can also cost you money. “If you have a friend who just got their real estate license, and they don’t know the ins and outs, then you could be getting into hot water,” says Pope. And, speaking of money, remember that your friend may have access to your personal financial data if you work with him or her, particularly if you apply for a mortgage to finance a purchase. Those with privacy concerns should probably work with a stranger.
Experts caution that you shouldn’t hire a friend to represent you just because they’re your friend or because they expect to get the listing. “Do your research, and make sure you understand what capacity this friend is operating in,” says Kilmer. “In Kansas City, we had 8,229 agents last year, but only 582, or 7%, sold more than 20 homes. That shows there are a lot of people out there with licenses who aren’t selling enough to be able to advise you in the best possible way.”
That’s why it’s essential to vet any agent you consider working with, friend or not. Ask friends and family for referrals to agents they’ve used successfully, research those agents and interview multiple candidates so you can assess their marketing and negotiation skills, communication style and knowledge of the local market.
“We’re talking big numbers when you buy or sell a house,” says Kilmer. “If you hire an agent who doesn’t know what they are doing, even if it saves you a few thousand dollars on the commission, it could cost you tens of thousands of dollars. The stakes are really high.”
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Should You Work with a Real Estate Agent Who’s a Friend? originally appeared on usnews.com
