Have you ever thought about WHY you should use a Realtor?
As you may have guessed, I meet a lot of people every week. Someone asked me why he should get his Real Estate License so he can have access to the MLS (Multiple Listing Service) rather than use a Realtor. So here is my opinion on why you should use a Realtor, rather than doing it yourself.
Education and Experience
You don’t need to know everything about buying and selling real estate if you hire a real estate professional who does. Henry Ford once said that when you hire people who are smarter than you are, it proves you are smarter than they are. The trick is to find the right person. For the most part, they all cost roughly the same, so why not hire a person with more education and experience than you? We’re all looking for more precious time in our lives, and hiring pros gives us that time.
Agents either possess intimate knowledge or they know where to find the industry buzz about your neighborhood. They can identify comparable sales and hand these facts to you, in addition to pointing you in the direction where you can find more data on schools, crime or demographics. For example, you may know that a home down the street was on the market for $350,000, but an agent will know it had upgrades and sold at $285,000 after 65 days on the market and after twice falling out of escrow.
Contrary to what some people believe, agents do not select prices for sellers or buyers. However, an agent will help to guide clients to make the right choices for themselves. If a listing is at 7%, for example, an agent has a 7% vested interest in the sale, but the client has a 93% interest. Listing Agents will ask buyers to weigh all the data supplied to them and to choose a price. Then based on market supply, demand and the conditions, the agent will devise a negotiation strategy.
Market Conditions Information
Real Estate Agents can disclose market conditions, which will govern your selling or buying process. Many factors determine how you will proceed. Data such as the average per square foot cost of similar homes, median and average sales prices, average days on market and ratios of list-to-sold prices, among other criteria, will have a huge bearing on what you ultimately decide to do.
Real estate agents network with other professionals, many of whom provide services that you will need to buy or sell. Due to legal liability, many agents will hesitate to recommend a certain individual or company over another, but they do know which vendors have a reputation for efficiency, competency, and competitive pricing. Agents can, however, give you a list of references with whom they have worked and provide background information to help you make a wise selection.
Negotiation Skills and Confidentiality
Top producing agents negotiate well because, unlike most buyers and sellers, they can remove themselves from the emotional aspects of the transaction and because they are skilled. It’s part of their job description. Good agents are not messengers, delivering buyer’s offers to sellers and vice versa. They are professionals who are trained to present their client’s case in the best light and agree to hold client information confidential from competing interests.
Handling Volumes of Paperwork
One-page deposit receipts were prevalent in the early 1970s. Today’s purchase and sale agreements run ten pages or more. That does not include the federal- and state-mandated disclosures nor disclosures dictated by local custom. Most real estate files average thicknesses from one to three inches of paper. One tiny mistake or omission could land you in court or cost you thousands. In some states, lawyers handle the disclosures—thank goodness!
Answer Questions After Closing
the smoothest transactions that close without complications can come
back to haunt. For example, taxing authorities that collect property tax
assessments, doc stamps or transfer tax can fall months behind and mix
up invoices, but one call to your agent can straighten out the
confusion. Many questions can pop up that were overlooked in the
excitement of closing. Good agents stand by ready to assist. Worthy and
honest agents don’t leave you in the dust to fend for yourself.
Develop Relationships for Future Business
The basis for an agent’s success and continued career in real estate is referrals. Few agents would survive if their livelihood was dependent on consistently drumming up new business. This emphasis gives agents strong incentives to make certain clients are happy and satisfied. It also means that an agent who stays in the business will be there for you when you need to hire an agent again. Many will periodically mail market updates to you to keep you informed and to stay in touch.
I am the first one to understand wanting to do something myself for fear that someone else will not do it as well as I could, but I have learned to pay for the services I am not proficient in. If you are interested in having access to MLS, get involved with a Realtor who can get you set up with an online search. As a buyer, the cost of using a Realtor is NOTHING. As a seller, you will get your money back in the sale of your largest asset.