Importance of an Editor?

[Dresdenus Prime]

I know that it's their job to read through the document, make suggestions, and help with the pacing, errors, and other such things, but is it possible to shop for a literary agent without having your work submitted to an "official" editor?

For example, I have a friend who reads constantly, and he's offered to read and critique my work. I have complete faith that he can perform the tasks of check errors, pace, and general interest in the story. But would that severely lower my chances of a literary agent reading my work?

If it's the case that an editor can be a make it or break it decision, can anyone give me what an average cost would be to hire one? Appreciate it! 

[AdamPepper]

I wouldnt recommend paying for an editor at this stage.  Just tune the book up to the best of your ability and then approach agents and see what kind of interest you get.  If you are looking to self publish, you might consider paying for editing services.

[the neurovore of Zur-En-Aargh]

I know that it's their job to read through the document, make suggestions, and help with the pacing, errors, and other such things, but is it possible to shop for a literary agent without having your work submitted to an "official" editor?

Yep.  Maybe not as easy to catch an agent's attention, as having some positive feedback from a known editor appears to be one away for an agent to tell you are serious and not another indistinguishable wannabe, but possible.

For example, I have a friend who reads constantly, and he's offered to read and critique my work. I have complete faith that he can perform the tasks of check errors, pace, and general interest in the story. But would that severely lower my chances of a literary agent reading my work?

Having beta-readers doesn't cause problems with agents in the slightest.

If it's the case that an editor can be a make it or break it decision, can anyone give me what an average cost would be to hire one? Appreciate it! 

The rule here is simple; if it's legitimate, the money flows towards the writer.  There may be people in the world who would honestly offer to edit for money, and if you have a personal friend who does it that's different, but anyone offering edit-for-hire as a professional service is overwhelmingly likely to be a scam artist.

[newtinmpls]

I would say I have what Harlan Ellison describes as a wise reader. Someone who will read it, tell me "this doesn't work", point out plot holes, praise the good stuff and generally give me useful feedback.

[Enjorous]

Reading some agents' blogs they definitely want manuscripts that are polished as much as they can be. Most officially or unofficially encourage others to read them before the author queries. Make's everyone's lives a bit easier.