Lots of people these days consider trying to sell their home themselves. And you would think why not, when you can take the agent’s 6% commission and put it in your pocket. The story is not so simple. Not only can you avoid paying anywhere close to 6% by finding an agent at SeekingAgents, but the idea of saving a commission without giving up anything in return is quite misguided.

Below are 10 good reasons why you should work with a real estate agent when buying or selling your home.

1) Release of liability

Practicing real estate agents are forced to buy something called Errors and Omissions (E&O) insurance. This protects you in the case of a mistake in the sales process by giving you someone who is financially liable for the mistake — the agent’s insurance company. Without an agent, you will have no-one to blame but yourself if a mistake you make causes you financial loss down the road.

2) Local expertise

A large part of a real estate agent’s full-time job is to understand their local real estate market. This gives them insight into supply, demand, and many other relevant market factors. Having this expertise at your fingertips is definitely to your advantage when you are looking to buy or sell a home. Knowledge is power.

3) Experience in closing

Do you know how prepaid property taxes should be distributed between buyer and seller in your area? Do you know whether you can receive interest payments on your escrow payment? Most people don’t.

By knowing small, less obvious, details related to the closing of a real estate transaction, a real estate agent can save you many headaches as well as cold hard cash.

4) Sell for more / Buy for less

Research shows time and again that homes sold by real estate agents sell for a higher average price than homes sold “by owner.”

Real estate agents tend to be experienced negotiators. Some people are comfortable handling this part of a real estate transaction themselves, while others are not. For those who aren’t, selling a home at a 5% discount or buying at a 5% premium is a serious risk. A real estate agent can help you make sure you are receiving fair value.

Moreover, an agent could give you tips on how to present yourself and your home to get the best possible price. There are many things you could do to improve the value of your home, but only a small number are cost-effective. An agent can help you determine which improvements are right for you and your home.

5) Save money

This may sound a little odd, but many people who choose to sell their home “by owner” actually end up paying more to sell their home than people who list with an agent right away. How could this be you ask?

Over 3/4 of people who begin with the intention of selling their home themselves end up enlisting the help of a real estate agent. This means they pay twice. First, to market their home on their own, without the help of a real estate agent — and then again when they decide to pay an agent a commission anyway.

6) Going “By Owner” doesn’t actually save you a full commission — this is a myth

For Sellers:

1) More often than not, to attract buyers with real estate agents to your home, you will have to agree to pay the buy-side real estate agent. Typically this is half of a standard commission. This means if your commission would have been 6%, you reduce it only by 3% by selling “By Owner”.

2) Buyers are not stupid. If you are selling “by owner”, buyers know that you do not have to pay a 6% commission and will thus factor this into the bid they make for your home (they want a portion of the profits too). So your savings will actually be between somewhere between 0% and 6% depending on how good you are at negotiating. Moreover, if the buyer has a real estate agent, your savings will be only between 0 and 3% for the reason described above.

For Buyers:

1) Going with an agent costs you nothing as a buyer. In fact, if you use the agents at http://www.seekingagents.com/, your agent can get you a rebate check for up to 75% of the buy-side commission* at closing that you could not legally be entitled to on your own.

7) Objectivity

An agent is trained to look at your home as an asset like any other (like a share of stock). This is the attitude you must have when buying/selling a home, in order to achieve the optimal financial outcome. Unfortunately, it is very difficult for most people to keep this objectivity when dealing with their home. An agent can help you avoid the many problems you may cause for yourself if you are not objective about your transaction.

8) Save time

Time is money. A real estate agent is a specialist. When it comes to real estate transactions, a real estate agent can often do in one hour something that might require you 10 hours. By paying a real estate agent, you are saving lots of time that you could spend on other activities that are important to you.

9) A network of experts

A good real estate agent will know several top title insurance companies and real estate attorneys in your area. While it’s always a good idea to make sure these service providers are independent of the real estate agent themselves, you should not hesitate in asking for a short list of recommendations. This can save you the headache of looking for your own experts, and working with the first ones you find.

10) Peace of mind

When you buy or sell with a real estate agent you know you are in experienced hands. For most people, the purchase/sale of their home is the largest financial transaction they will ever make. A mistake can be exceedingly costly. It’s worth a few percent in commissions to ensure that you live happily ever after.