The advantages of using a real estate agent
This topic is heavily weighted, both by buyers and sellers. I want to address it, but I want to disclose up front that I’m a real estate agent, so my perspective will be somewhat skewed.
If you are buying a new home, I would always, ALWAYS recommend using the services of a real estate agent. First of all, and this may be your most important reason, you do not pay for any of the services provided. This is because the seller pays real estate agents on both sides of the transaction as part of their listing fee.
However, beyond economic reasons, a real estate agent will have access to all properties for sale listed on the Multiple Listing Service (MLS) for their area. By simply providing a few details about what you’re looking for and where, a real estate agent can literally make hundreds of homes available for your review (depending on how specific your parameters are). That gives you the opportunity to review the list from the comfort of your home and weed out those properties that don’t fit your needs. If any questions arise during your research, your real estate agent will be the one to find the answers for you.
When you’ve narrowed down your selection and picked the properties you’d really like to visit, working with a real estate agent is key. Most sellers who list their home do so to ensure their home is shown to “real” buyers accompanied by a licensed real estate professional. For added convenience, most listings include a lock box or Sentrilock box for secure access to the home. Obtaining the lock box code will be impossible unless you are a licensed real estate agent. Homes that are being sold by owner (FSBO) are a different matter and I’ll get to that later in this post.
The buying process includes a series of steps that a real estate agent can not only facilitate, but also speed up. Once the buyer has decided on a property, the real estate agent can prepare their offer documents (contracts, addenda, disclosures, etc.) for signature and present them to the seller. Once your offer is accepted, your real estate agent can guide you through the process of successfully closing escrow. This will include home inspection, attorney’s review of contracts, and processing of your mortgage financing. If a buyer does not have access to an attorney, lender, or home inspector, a real estate agent will be able to provide referrals for those services.
Your real estate agent can also provide significant assistance in the negotiation process. They know the current market and can tell you if the house is priced accordingly. They will also be able to assess the market value of the home based on its condition or any improvements the seller has made.
From a buyer’s perspective, it only makes sense to use the services of a professional while searching for your dream home. This is especially true when he considers that he does not pay any fees for those services.
As a seller, the decision becomes a bit more complicated. Many sellers are finding that their home’s market value isn’t as much as they expected and they are having to sharpen their pencils to break even. When you consider that a real estate agent may charge a 4-6% listing fee, the list of costs to sell your home, after paying off your mortgage, can make that break-even point difficult to achieve.
The advantages of listing your home with a real estate agent are countless. They include, among others, the precise analysis of the market value of your home, open house days, staging recommendations, signage, the inclusion of the Multiple Listing Service and, above all, the extensive marketing of the home (THE most important advantage).
If an owner decides to sell his house by himself (FSBO or For Sale By Owner), all these costs are paid by the seller. Obviously, marketing becomes the most expensive element. Putting up a For Sale sign in your yard and paying for a 2″ x 2″ ad in your local paper will not reach the number of prospective buyers needed to sell your home in a reasonable amount of time. The rate at which a house is sold is directly proportional to the number of buyers who see the house. A real estate agent’s marketing campaign, if effective, can produce a steady stream of showings. Shows produce deals, and deals lead to successful closings.
In the final analysis, a seller has to look at their net profit to determine the feasibility of listing with a real estate agent. Even with all the advantages listed above, if a seller has to bring money to the closing table, that will weigh heavily on their decision. As a real estate agent, I would always recommend listing your home with one of my esteemed colleagues. However, I am no stranger to the economic conditions many homeowners face, and many people have successfully sold their homes as FSBOs.
Whatever your decision and whether you are a buyer or a seller, there will always be obstacles to overcome. If you find that you just can’t seem to get around these hurdles… call your local real estate agent.