Why Home Buyers and Sellers Should Use Real Estate Agents

Using a good real estate agent to close on the right home should be a "no-brainer." There are many ways that real estate agents add value to the home buying process. And since all commissions are paid by the seller, home buyers should definitely take advantage of this resource. Here are just five of the many reasons why using a real estate agent can enhance the home-buying process.

BUYERS:

Knowing the neighborhood.

A real estate agent who knows the neighborhood, may already know whether or not a home has what you are looking for. For example, your agent will know that a home has the large master bath you want or the heavily wooded lot that you don't. After seeing several homes together, your agent will pick up on your likes and dislikes even if you aren't aware of them.

Staying within financial boundaries.

The cost of home ownership extends beyond the mortgage. Real estate agents are aware of upkeep and renovation costs, and they can help you calculate the actual costs of owning one home or another. In addition, a real estate agent is experienced in negotiating for repairs or repair allowances. Finally, tell your agent if your job requires you to move frequently. Such careers demand that you purchase a home that will be easy to sell later on. In these cases, a real estate agent's advice is invaluable.
Interpreting pricing.

As you know housing prices are negotiable, but a real estate agent can find out why a home is priced too high or too low. Maybe a home is priced low because the owners are moving out of state and need to sell immediately. Or maybe the price is reduced because the home needs substantial renovation. On the other hand, if a home is overpriced for its market, your agent will know that too. This means that a real estate agent can search outside the financial box and find overpriced homes that are actually in your price range.

Handling negotiations.

A cool-headed person can negotiate more effectively than an emotional one. A real estate agent knows how to present negotiation points without offending sellers, a skill that could net you thousands of dollars in the end.
Managing timelines and paperwork.

Real estate agents know when to schedule the home inspection―they can recommend a quality inspector too. They can also recommend closing attorneys, mortgage lenders, and even contractors. In addition, an agent handles reams of paperwork that could easily be mishandled by even experienced buyers. When you use a real estate agent, you know your closing schedule is on track.

SELLERS:

Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000 and in these parts often exceed $1,000,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a Realtor.

The selling process generally begins with a determination of a reasonable asking price. Your Realtor can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.

Marketing

The next step is a marketing plan. Often, your agent can recommend repairs or cosmetic work that will significantly enhance the salability of the property. Marketing includes the exposure of your property to other real estate agents and the public. In many markets across the country, more than 50 percent of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer.

Security

When a property is marketed with an agent's help, you do not have to allow strangers into your home. Agents will generally pre-screen and often accompany qualified prospects through your property.

Negotiating

The negotiation process deals with much the same issues for both buyers and sellers, as noted before under the buying process. Your agent can help you objectively evaluate every buyer's proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing -- a lot of possible pitfalls. Your agent can help you write a legally binding, win-win agreement that will be more likely to make it through the process.

Monitoring, renegotiating and closing

Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your agent is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).

Summing up

So no reason on either side, buying or selling,  to try to go this often daunting task alone especially in this continuously changing market.  Do your homework, interview 2 or 3 Realtors, make sure they are Realtors and not just agents (Realtors actually have a state real estate license) and sit back and enjoy what can be a really fun and ultimately gratifying experience.

© Patty Ross, KRXA Radio Show #249  October 2013