Real Estate Advisor: September 2015
Buying or selling a home seems to be a way of life for a lot of people in today's world. When you buy, you definitely want to get the most for your money. Many people think they can go it alone when it comes to buying or selling a house, and it's definitely true that some people are able to handle all the details of buying and selling a home or property, but in reality the real estate process is intricate and requires a lot of knowledge about the local real estate market, contracts, escrow, appraisals and referrals. While some home owners and buyers are in a position to go it alone, for those intimidated by the market or those who don't have the time or energy to sell or buy a home on their own, here are some reasons why it's a smart move to use a real estate agent during your next real estate transaction.
You've lived in an area for some time – but while you may know about local amenities and activities, do you have a lot of knowledge on the local real estate market? Real estate agents know their markets: they know how much homes are selling for, they know what areas are highly desirable and they know which ones are up-and-coming. You can trust an agent to know the local inventory and know how to get the best price for a home or property.
Real estate agents have a number of access points that a regular buyer or seller doesn't. They have access to listings before they are put in the MLS, and they have access to the homes! Many sellers are only willing to grant access to agents, which means that most buyers going it alone can only access homes during open houses. An agent working for the seller is only going to provide information with the seller's best interest at heart, so when you go it alone you might be only getting partial information from any questions you may have. Working with an agent will help provide private access to homes, and an agent will be able to get more information from the seller's agent.
Buying a home is an intimidating experience – you're making one of the biggest financial decisions of your life. As a buyer, you want to make sure stress and emotions don't get the better of you, especially when it comes to making important decisions. Real estate agents know what buyers and sellers go through – they've been there, as it's more than likely they too have made a real estate purchase of their own. While they have personal experience, they also have an experienced rational eye when it comes to the business portion of a real estate transaction. They possess clear judgement, and agents are a seller and buyer's biggest advocate for a successful negotiation. Real estate agents have the experience, knowledge and acumen to make the process as smooth and stress-free as possible.
The real estate transaction process requires a number of professionals and services. From a lender, home inspector, contractors and handymen for repairs, lawyers, and a number of other professionals and tradesmen, knowing the right people is beyond important when you want to have a smooth and successful transaction. Real estate agents are in the business, and their past experience has provided them with a number of respectable and dependable contacts and referrals than you'll find asking friends and family. A ready agent will come prepared with connections and people they are willing to refer because they've worked with them in the past and they know their track record. When you choose to work without an agent, you sacrifice the networking that naturally comes with being a real estate agent.
No Cost When Buying
If you're searching for a home or property to buy, having an agent is free. An agent's commission is paid by the seller, but most buyers don't realize this and entertain the idea of going without a Realtor during their home search. If a seller pays the commission, there is no loss to a buyer to take full advantage of all the services a real estate agent offers. It's also important to understand that even if you choose to go it alone when buying a home, you do not receive the commission a buyer's agent would. Commission rates are negotiated before the final sale and are included in the contract, meaning if you don't use a buyer's agent, the entire commission is paid to the listing agent.
Documents and Paperwork
Unless you're working with a brand new agent, most agents know the ins and outs of all the documents and paperwork required for a home sale or purchase because they've been through a number of transactions. From finding the comps of your market and drafting a purchase agreement, to contacting any other agents and the title company, a real estate agent will be able to provide help in the forms of knowledge, time and resources during the real estate transaction process. Agents also know the important parts of an offer or contract, especially when it comes to line items that could cost a lot in the end or things that are negotiable. Having an agent that knows the process, the paperwork and the documentation is a valuable asset when it comes to making one of the biggest decisions of your life.