Deciding whether or not to use a real estate agent when you buy or sell your next home is a question that you might have asked yourself in the past. If you are not sure if it would be beneficial to use a Real Estate Agent, maybe this article can help.
The 2011 profile of homebuyers and sellers created and distributed by the National Association of Realtors shows that For Sale By Owners (FSBO’s) accounted for only 10% of home sales. Also the average FSBO listing sold for $150,000 while the average real estate agent assisted home sold for $215,000. While many people think that they can save time and money by selling the home on their own, this is often not the case. They also usually don’t always understand the trials that come along with selling their home FSBO. The Profile of Homebuyers and Sellers show the hardest tasks for a FSBO are:
• Understanding the housing market and listing their home at the right price.
• Understanding the paperwork involved and correctly filling everything out.
• Having enough time to devote to all aspects of the sale. This would be marketing the home, showing the home, responding to phone calls and emails about the home, etc.
• Determining whether or not they should spend extra money to prepare or fix up the home.
• Selling the home within a certain time frame.
Purchasing or selling a home is typically the largest investment most people will make in their lives. Whether you’re buying a new home or selling your existing home, a real estate agent can help protect your interests and potentially save you a substantial amount of money. We have compiled a list of benefits for both the homebuyer and seller.
Reasons To Use A Real Estate Agent When Buying A Home
1. A home buyer is usually not required to pay the real estate agent. When a real estate agent represents a home buyer on a purchase of a home, the commission earned by that agent is paid for by the seller of the home. The commission is taken out of the sales price.
2. Real estate agents have access to the Multiple Listing Service (MLS). The MLS is a serviced provide to real estate agent that gives them the most up today information on homes that are for sale in your area.
This service is not available to the general public. With the MLS an agent can find out information about the home like, taxes, how long it has been listed, price changes, special features on the home etc.
3. Agents have knowledge about the area. A real estate agent should be able to tell you about the neighborhood, schools, activities, recreational areas, etc. that are available in the areas that you are looking to purchase.
4. Agents know how to negotiate with the seller on your behalf. Negotiating the price of a home can often get very difficult. In today’s market it is not uncommon to ask for closing costs to be paid, repairs to be completed, home warranties, or inspections. Often real estate agents are able to negotiate items in the home like washers/dryers, refrigerators, or furniture into the sale of the property. Your real estate agents job is to make sure you get the best deal.
5. Agents keep the deal going. Once your offer has been accepted you will have a lot of tasks that need to be completed in a short amount of time. Your agent can help you keep track and orchestrate all the tasks required in the buying process.
Reasons To Use A Real Estate Agent When Selling A Home
1. A real estate agent is worth the commission. Once you actually consider all the things your agent will do for you from the time they list the home to the time it sells, the commission paid to that agent is usually money well spent. Often times an agent will be able to help you get your home sold much faster and for more money than you could have on your own.
2. Agents understand the current housing market. Choose an agent that lives in your area. This agent will understand the neighborhood, home values, benefits of the area, and the local competition.
3. Agents know how to sell your home. This is their job, and just like any other job if they don’t do a good job they get fired. A real estate agent is a professional and should know what they are doing. It is often a good idea to get an agents track record prior to letting them sell your home. Selling any home takes experience, dedication and knowledge in this market. Their job is to attract buyers and sell the home.
4. Agents know what will make houses sell. Your agent will be able to give you advice on what could be done to the home to get it sold quicker. Anything from staging the home to making minor repairs or upgrades.
5. Agents will put your home on the MLS. A real estate agent has access to the Multiple Listing Service (MLS). This tool is only available to real estate agents and allows them to get your home in front of thousands of other agents and buyers.
6. Agents know how to market your home. Your agent will know what to do to market your home for sale, whether that is an open house, internet exposure, flyers, caravans, etc.
7. Agents represent you to the end. Your agent will represent you from the time the home is listed to the time is closes escrow. An agent’s job is to make sure your interests are protected in the sale of the home and every thing negotiated in the contract is fulfilled. If a problem arises at or after closing your agent is there to help resolve any issues.